I pretty much only hold FX positions at the moment - rest in...

I pretty much only hold FX positions at the moment - rest in cash. I am not happy with cash because if the sh*t hits the fan then there is no ruling out of confiscation by the banks.

I think property and stocks are overvalued - I dont know which will get a correction first .. the slow trickle of people being let go is looking to increase well into next year .. property could hold out till then but I doubt it. If we had much more CAPEX forecast and China wasnt so over-leveraged then I would say property more than likely to keep increasing.

Looking at Sydney's median house price - its gone parabolic .. we all know how that ends.

Wherever we look, bad news = good news and good news = good news .. this type of market will create a false sense of security for almost everyone by making them believe they are making a great investment choice as they can see how much it increases in (paper) value. Sadly any idiot can make money in this market - but it will turn and when it does the treading of water will start and those they dont have the courage to cut while they can will be truly taken for a ride. And I would not be relying on rents increasing .. unless the government starts handing out bigger cheques.