Quote:
Originally posted by RoninLB
Liquidity is fluid. It'll flow from one area to another. It'll flow from one industry to another.. it's always looking for fuel.
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MOTHER? Is that U?
That sounds just like what Mother told me when I first met her....
Anyway....When one asset classes risk to reward ratio becomes to great...Liquidity finds another asset class where the risk to reward ratio is more favorable....I do think that is a more succint way of putting it Ronin....
Ok...Bond prices have been on the rise for 20 years or so...RE as a refelection of lower interest rates has risen in value dramaticaly....now that interest rates are RISING, Bond prices and housing prices will start to soften....THus lots of risk for little reward....
So what else is there to invest your money in.. Collectables...again the price of collectables has risen dramaticaly in the past 6 years as well. .
And lastly the Stock Market...what has happened to it in the last 4 years......DOWN DOWN DOWN and still DOWN....lower risk to reward ratio...