Leave a Comment:
1 comment
Many macro-analysts have already predicted this scenario of mass insolvency and mass devaluation in spite of the massive papering by central banks to cover the problems via money printing and artificially keeping interest rates close to zero. However, in investments, there is a difference being right and making money. Many of these macro-people under-estimated the psychology and animal spirits of masses, and they lost out on the big rebounds in 2009 and late 2010. But ultimately, the macro situation cannot be escaped — the chips shall be called in and the masses facing the music. Probably not in the next 6 months, but definitely within the next 2 years. The next time round, governments around the world may not want or may not be in a position to use more QE to jump-start the economy and kick the can further down the road, as by then they will know that this method does not ultimately work. Those holding onto risk assets like stocks and commodities just need to be more nimble. Those who bought illiquid risk assets like expensive properties will need to be prepared for stress and pain, and/or have loads of SGD/gold on standby.
Reply