Jun 24, 2020
Welcome to Finance and Fury, the Say What Wednesday edition.
Policies that governments and CBs have implemented that affect asset values
Relates back to Ryan’s investment thesis - As a millennial I understand that the government has to do their best to keep the ageing baby boomer asset prices (predominantly US share market and Australia property) high so they don't have to fund them in retirement through pension- though I am not sure I am that interested in paying top dollars for these assets in which puts me right out there in the risk curve for not a high enough potential return.
Go through monetary policy and how this has affected asset prices – and how it will likely continue to do so
Reasoning for policies that have inflated asset prices - Not for the reason of pension funds -
Cash itself – in times of uncertainty or need of liquidity is king – but not a good asset class – shouldn’t be seen as an investment – it is a medium of exchange
Currency destruction and the policies that have affected asset prices – again - created money has to flow somewhere
This being said – for the purpose of simplicity when talking about how policies have affected them – I will be talking about as an aggregate -
All assets can be propped up on prices – overdemand – hand sanitizer or toilet paper
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