Well, This is certainly a passionate write up tackling complex...

  1. 885 Posts.
    Well, This is certainly a passionate write up tackling complex issues, no less than the Stock Market, Cash Deposits, Residential AND Commercial Property.

    The Economists and other Gurus, Governments, Cowboys in Listed Trusts and Companies all get a serve and bashing from that Bat you are swinging. Good one....I’d be more than happy to help you kick them in the Teeth!!!

    However, I can’t say that I agree with your analysis of the Stock Market and Cash Deposit returns. The fact is that Retail has largely stayed out this market since GFC1. This is what my research tell me. The market is held by the Commercials who have not succeeded in conning the Retail Investor (this time). So, look out below when the money supply gets tight and lending tightens up. This I believe to be a very good reason to be in Cash.

    As for the statement that property has risen 40% since 2007 (in general terms). Well, isn’t property also down some 20% since 2010 (in general terms)?
    However, there is truth in what you say about Inflation and its effect on cash assets. But it must also be remembered that Australian Property is in a major Bubble and Australia has a Housing Affordability Crisis.
    If prices continue to rise exponentially as they have in recent years, there will be generations who will be living on the streets!
    Governments must seriously look at this issue in order to circumvent a potential disastrous situation for our younger generations.

    Markets, as an instrument generally self correct - if left to their devices. Interference by Politicians pressed by Lobbying Groups have thrown the system into discord.
    Given time these instruments should (generally do) revert to the mean and sometimes overshoot to the underside. This is the nature of Markets.
 
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