The below segment is a worthwhile discussion of the interconnection between central bank repressed interest rates and the simulateous rise in real estate and financial assets over the last decade, leading to the first ever ‘everything bubble’ globally. Naturally, what went up together is now coming down together, and it’s important to note that recoveries after credit-driven property busts tend to take years, not months. Here is a direct video link.
I have no idea how or whether David Hay and his management firm are expressing his cautious view in their investment strategy or asset allocation.
The reality is that even the few commentators and managers who do acknowledge or warn that loss cycles are underway, rarely recommend or take meaningful protective measures for capital at risk. Believe it or not. This is why few individuals or managers protect principle and preserve liquidity, and most end-up liquidating into weakness rather than buying during clearance sales.
;
