Guys,
An interesting article with a fair bit of insight from Warren Buffet in today's SMH:
Its been too good for too long
i.e. Are you over-exposed on speculative positions due to super cheap capital? And have you factored a sufficient buffer in your borrowing holding costs on your illiquid assets such as property?
We might be in for some serious corrections to over-priced asset categories in the coming years as the cost of capital returns to more normal "neutral" levels globally and we see an end to the Japanese yen carry trade.
Cheers,
Michael.
An interesting article with a fair bit of insight from Warren Buffet in today's SMH:
Its been too good for too long
So my question to you all is, when the tide goes out (as it seems it is doing currently across the board) will you be caught naked?Warren Buffet said:IT'S only when the tide goes out that you can see who's been swimming naked, remarked the billionaire investor Warren Buffett. The world has been swimming in super-cheap liquidity for the past five years.
i.e. Are you over-exposed on speculative positions due to super cheap capital? And have you factored a sufficient buffer in your borrowing holding costs on your illiquid assets such as property?
We might be in for some serious corrections to over-priced asset categories in the coming years as the cost of capital returns to more normal "neutral" levels globally and we see an end to the Japanese yen carry trade.
Cheers,
Michael.