Budget 2006: Property & Shares vs Super - which one is now better?
- Thread starter MPmelb
- Start date
Aceyducey,
If we happen to be unfortunate enough to experience another depression, and if I am correct, the next one is going to be bigger than the 1929 event. I doubt that any stock, or asset, is going to be worth too much.
To date the world has indeed been keeping the USA afloat, but there comes a point when globally the other countries say enough is enough. That point, I believe, has been reached. After all why should my frugal lifestyle pay to support another's flambouyant lifestyle?
Pete,
I am no expert, and whilst a large chunk of my business is based on China, I don't know enough to really comment on it. However, I do know that they have been sewing up very large deals on oil, LNG, LPG, minerals etc globally. They are diversifying their currency basket away from the US$ and they have also been purchasing many tons of gold.
Australia is in a much better position than many countries, but we are not as well placed as the politicians lead us to believe.
A clue for the times is to be as self sufficient as possible, just in case. And if I am wrong, it's just a little inconvience - but if I am right, well it's money and time well invested!
I try to walk the talk and have bought 4 acres on the outskirts of Melbourne, put in a dam, orchard, some vines, a woodlot, some bee hives and a shed. The primary concern is to be as self sufficient as possible. Our PPR will be sold soon to relieve some debt and we will build another house on the acreage.
These comments are not meant to scare anyone and are only what we, as a family, are doing. So we consider it as an insurance policy, which is part of our investment strategy.
Cava
If we happen to be unfortunate enough to experience another depression, and if I am correct, the next one is going to be bigger than the 1929 event. I doubt that any stock, or asset, is going to be worth too much.
To date the world has indeed been keeping the USA afloat, but there comes a point when globally the other countries say enough is enough. That point, I believe, has been reached. After all why should my frugal lifestyle pay to support another's flambouyant lifestyle?
Pete,
I am no expert, and whilst a large chunk of my business is based on China, I don't know enough to really comment on it. However, I do know that they have been sewing up very large deals on oil, LNG, LPG, minerals etc globally. They are diversifying their currency basket away from the US$ and they have also been purchasing many tons of gold.
Australia is in a much better position than many countries, but we are not as well placed as the politicians lead us to believe.
A clue for the times is to be as self sufficient as possible, just in case. And if I am wrong, it's just a little inconvience - but if I am right, well it's money and time well invested!
I try to walk the talk and have bought 4 acres on the outskirts of Melbourne, put in a dam, orchard, some vines, a woodlot, some bee hives and a shed. The primary concern is to be as self sufficient as possible. Our PPR will be sold soon to relieve some debt and we will build another house on the acreage.
These comments are not meant to scare anyone and are only what we, as a family, are doing. So we consider it as an insurance policy, which is part of our investment strategy.
Cava
Cava, you might resonate with this guy....
http://www.gloomboomdoom.com/
http://www.gloomboomdoom.com/
cava said:I try to walk the talk and have bought 4 acres on the outskirts of Melbourne, put in a dam, orchard, some vines, a woodlot, some bee hives and a shed. The primary concern is to be as self sufficient as possible. Our PPR will be sold soon to relieve some debt and we will build another house on the acreage.
These comments are not meant to scare anyone and are only what we, as a family, are doing. So we consider it as an insurance policy, which is part of our investment strategy.
Cava
Have you stockked up on canned food aswell
GG
Cava, keep spreading the word about stocks just being pieces of paper. The more people that believe that, the more opportunity to profit when the bargains are about.
See ya's.
See ya's.
hi cava
very interesting post and alot of what you have said I agree with and i would be very interested in your views with regard to an asian euro
asia is moving very fast at the moment not just china but vietnam as well and I see that we will see a asian euro in what ever form it takes
with the american dollar on one side and the pound on the other and the euro in the middle, with the emerging rmb and the cash in asia building up within the countries and will need to go some where.
you can only hold in these currencies internally for so long and you either start buying currencies( which asia don't want to do) or you get an asian euro.
what are your feelings on the asian and in particular china and vietnam.
they quote as they always have in us dollar but are now quoting in rmb for china and most dealing has been changed to rmb.
I wouldn't be stock piling canned food at the moment but we are at a very interesting time and the states have been going very well for along time but we have yet to see the asian dragons start to flap there wings and from my look at the table we are seeing a very interesting game of chess being played and we are only pawns but maybe you can see how this game is being played from a different view.
very interesting post and alot of what you have said I agree with and i would be very interested in your views with regard to an asian euro
asia is moving very fast at the moment not just china but vietnam as well and I see that we will see a asian euro in what ever form it takes
with the american dollar on one side and the pound on the other and the euro in the middle, with the emerging rmb and the cash in asia building up within the countries and will need to go some where.
you can only hold in these currencies internally for so long and you either start buying currencies( which asia don't want to do) or you get an asian euro.
what are your feelings on the asian and in particular china and vietnam.
they quote as they always have in us dollar but are now quoting in rmb for china and most dealing has been changed to rmb.
I wouldn't be stock piling canned food at the moment but we are at a very interesting time and the states have been going very well for along time but we have yet to see the asian dragons start to flap there wings and from my look at the table we are seeing a very interesting game of chess being played and we are only pawns but maybe you can see how this game is being played from a different view.
Sorry to disappoint GG as, believe it or not, I am not that extreme and actually quite conservativeGordon Gekko said:Have you stockked up on canned food aswell
GG
. I just consider my planning as an insurance policy for when things get tough. There is after all, a lot of peace of mind that comes from having no debts on your PPR and all the advantages, and tax write-offs, of an IP.
I am not a mormom however, I know that mormon households do have an emergency kit which contains food and water for so many months and I would be reticent to infer that they were fringe dwellers. Would'nt you?
Regional currency is a very complicated and contientious issue and I do not know how the process will be played out.grossreal said:
My gut feeling is that as an interim position there will be several main regional currencies being the Asian, Middle Eastern, Euro and possibly the US$. Much as the british do not like it, the british pound will be annexed into the Euro.
Longer term, I believe that the Euro will be the precursor to a truely global currency and it will in all probability be in the form of electronic credits or similar which would solve any inter regional currency exchange issues.
Do I think that a world currency is a good thing? No
. But the powers to be have already dictated that we will have it in concert with a one world government.The rmb has grown stronger in value and status but I do not believe that it will appreciate much more as I feel that it will consolidate its position. Remember the chinese are very shrewd and deliberate businessmen/women, who believe in waiting for the right timing and conditions.
Cava
It is a little complicated Glebe.Glebe said:
Effectively paper money is supposed to be backed by the worth of a country and traditionally this has been through gold. Unfortunately, a large number of countries have been selling off their treasury holding of gold in an attempt to balance their internal and external current accounts.
When a country's debts exceed their assets the creditors generally demand payment as they are worried about the debtor paying them back. Gold is traditionally the usual medium. If the government doesnt have the gold to pay the creditor back, they have to purchase it on the international market. And as there is only so much gold, it is a case of supply and demand.
Gold is always a safe haven in times of political or financial turmoil, as it holds its value unlike paper (fiat) currency, which is why China and Russia have been buying tons of it in the last 12 months. Consider the cost to produce a A$100 note is approximately $0.05 but gold is worth much more to mine and refine etc. Search the gold bullion web sites for a more detailed analysis Glebe.
Cava
Cava,
I have been watching golds ascent with interest - do you see any interesting parallels with the 70's? Oil is up, inflation is slowly creeping up, an expensive war or 2, etc.
I also know what happend to gold after 1980 - it fell like a rock. Personally I think it will fall again, because as an investment it's pretty much hopeless (no income, no _real_ growth expect for speculation) and as such I do not trust it. Until it does though, enjoy the ride
I have been watching golds ascent with interest - do you see any interesting parallels with the 70's? Oil is up, inflation is slowly creeping up, an expensive war or 2, etc.
I also know what happend to gold after 1980 - it fell like a rock. Personally I think it will fall again, because as an investment it's pretty much hopeless (no income, no _real_ growth expect for speculation) and as such I do not trust it. Until it does though, enjoy the ride
There are similarities with the late 70s early 80's however, there are also fundamental differences especially with the religious and terrorist elements.stretchy said:Cava,
I have been watching golds ascent with interest - do you see any interesting parallels with the 70's? Oil is up, inflation is slowly creeping up, an expensive war or 2, etc.
I also know what happend to gold after 1980 - it fell like a rock. Personally I think it will fall again, because as an investment it's pretty much hopeless (no income, no _real_ growth expect for speculation) and as such I do not trust it. Until it does though, enjoy the ride
And you are correct regarding the correction to gold in 1980. However, you realise that the correction was still twice the pre-boom price, 12 months previously. In January 1979 the price was circa $220 and after the correction in April 1980 the price was circa $510. The high price in that period was circa $850 which was approximately four times the pre-boom price.
Either way, if you totally missed selling near the high of the market, the profit % was still greater than 100%. Not bad for a years work
.Cava
