The big boys are the ones with the greatest difficulty. The likes of GIC will have tremendous performance pressure but the astute small player he/she is OK. Of course most small players aren't shrewd and the big boys will surely figure ways to take your money.
At some point people must ask themselves what's wrong with keeping cash? Safety first in a dangerous environment. And don't ignore gold and other commodities. Wary of financial assets. The financial economy is now many times larger than the real one and soon people will be forced to worry. The financial economy has to slow down or even pop. Already it is choking the real economy. Aren't we all complaining about runaway rents?
People are also in denial. It helps when it is very complex. I wish I have better clarity.
This boosting of the stock markets is a myth if not evil. There is a lot of real explaining whether the economy and the real performance of the firm supports the high stock prices. That goes the same for rentals - all this financialisation is one big casino game that leaves the poor poorer and the middle class poorer. I am not saying anything about the rich and the supra rich.
ReplyDeletesometimes one should start thinking why people (especially so-called professional financial planners) are asking the clients not to hold cash! Oh, interest so low thus cannot sustain cost of living ... blar blar blar. And so they drum up this proposition to invest in this and that ... and interestingly, our local experts also on the tailing end of market ideas, that one may wonder keeping the hard-earned capital cash intact works out better than punting away on some great guy's idea. More interesting, those who got burnt continue to stay in denial - and will pop up their eyes when another proposition comes along
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