Financial systems change all the time if you look through history. You can be frustrated with it or adapt to the change. What is new and frustrating to us now because it's different to what we are used to is 'normal' to a certain generation now. They will be frustrated when / if interest rates go up and will need to re-set their ways of thinking.
How long this will last nobody knows, we do know that any decent raise in IRs can be catastrophic for governments and their borrowing first and foremost, housing and everything else second. The low / negative rates could be the new norm for a while. Those in debt achieve growth, savers don't.
In regards to the housing market - it feels like last drinks have been called in parts of the market but that is not to say we will see an agressive correction. Just the top of a market cycle like many others in history (some bigger, some smaller).
In direct response to your question in the op my view is to always keep a balance between cash and leveraged assets and tune the ratio along the way as the system changes. Right not I am very slowly and gradually readjusting towards more cash / less assets (majority is in assets atm) but it would be silly to go either all cash or all leveraged assets regardless of the financial system at the time. Always keep a balance / hedge
