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In the current deflationary environment, it could be wise
If you avoid a 20 or 30pc crash, that is a lot of losses due to inflation when inflation is more or less as low as term deposits returns are..
But when inflation jump to 3 or 4 pc, compounded effect quickly reduce you savings in real term
Some food for thoughts
Have a look at Japan inflation for the last 20y
https://www.google.com/imgres?imgurl=http://bilbo.economicoutlook.net/blog/wp-content/uploads/2012/06/Japan_Annual_Inflation_Rate_1971_2011.jpg&imgrefurl=http://noahpinionblog.blogspot.com/2013/07/japans-stagnation-demand-side-or-supply.html&docid=Jk-Ipx5uf4TOAM&tbnid=7nbmEd_ZyhgcpM:&vet=1&w=525&h=298&source=sh/x/im
For a japanese japanese in 2000, the best action would have been to cash out and store the bills under the mattress...
The real question os
How do you see Australia and the west in 20ythe next
As the past 20y for us, europe, US or Japan
Being right or wrong strategy wise will be decided on this
Sadly no quick easy recipe

<blockquote data-quote="qldfrog" data-source="post: 1044515" data-attributes="member: 17857">In the current deflationary environment, it could be wiseIf you avoid a 20 or 30pc crash, that is a lot of losses due to inflation when inflation is more or less as low as term deposits returns are..But when inflation jump to 3 or 4 pc, compounded effect quickly reduce you savings in real termSome food for thoughtsHave a look at Japan inflation for the last 20y<a href="https://www.google.com/imgres?imgurl=http%3A%2F%2Fbilbo.economicoutlook.net%2Fblog%2Fwp-content%2Fuploads%2F2012%2F06%2FJapan_Annual_Inflation_Rate_1971_2011.jpg&amp;imgrefurl=http%3A%2F%2Fnoahpinionblog.blogspot.com%2F2013%2F07%2Fjapans-stagnation-demand-side-or-supply.html&amp;docid=Jk-Ipx5uf4TOAM&amp;tbnid=7nbmEd_ZyhgcpM%3A&amp;vet=1&amp;w=525&amp;h=298&amp;source=sh%2Fx%2Fim" target="_blank">https://www.google.com/imgres?imgurl=http://bilbo.economicoutlook.net/blog/wp-content/uploads/2012/06/Japan_Annual_Inflation_Rate_1971_2011.jpg&amp;imgrefurl=http://noahpinionblog.blogspot.com/2013/07/japans-stagnation-demand-side-or-supply.html&amp;docid=Jk-Ipx5uf4TOAM&amp;tbnid=7nbmEd_ZyhgcpM:&amp;vet=1&amp;w=525&amp;h=298&amp;source=sh/x/im</a>For a japanese japanese in 2000, the best action would have been to cash out and store the bills under the mattress...The real question osHow do you see Australia and the west in&nbsp; 20ythe nextAs the past 20y for us, europe, US or JapanBeing right or wrong strategy wise will be decided on thisSadly no quick easy recipe</blockquote>

[QUOTE="qldfrog, post: 1044515, member: 17857"] In the current deflationary environment, it could be wise If you avoid a 20 or 30pc crash, that is a lot of losses due to inflation when inflation is more or less as low as term deposits returns are.. But when inflation jump to 3 or 4 pc, compounded effect quickly reduce you savings in real term Some food for thoughts Have a look at Japan inflation for the last 20y [URL]https://www.google.com/imgres?imgurl=http%3A%2F%2Fbilbo.economicoutlook.net%2Fblog%2Fwp-content%2Fuploads%2F2012%2F06%2FJapan_Annual_Inflation_Rate_1971_2011.jpg&imgrefurl=http%3A%2F%2Fnoahpinionblog.blogspot.com%2F2013%2F07%2Fjapans-stagnation-demand-side-or-supply.html&docid=Jk-Ipx5uf4TOAM&tbnid=7nbmEd_ZyhgcpM%3A&vet=1&w=525&h=298&source=sh%2Fx%2Fim[/URL] For a japanese japanese in 2000, the best action would have been to cash out and store the bills under the mattress... The real question os How do you see Australia and the west in 20ythe next As the past 20y for us, europe, US or Japan Being right or wrong strategy wise will be decided on this Sadly no quick easy recipe [/QUOTE]

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