Quote from deadbroke:
Thanks for that, Z.
I'll explain to you why I believe it is CASH. You will most likely disagree with me as I expect everyone here would, but here goes anyway .....
In a bullmarket as the one we had for the last 70 years, CREDIT and expansion were KINGS and CASH was despised as a reprobate. Proof was the fact that the American Savings Rate was at 0% for decades. So remember, Credit was loose, lenders trusted and had confidence in the ability of borrowers to repay.
This has now reversed.
The American Savings Rate has shot up to past 7% like a rocket screeching fuckit.
Contraction now is the modus operandi of the American consumer - this alone is the harbinger of DEFLATION.
In a DEFLATION one gets rid of everything of value and then unbolts whatever is bolted to the floor and gets rid of it too - TO RAISE CASH.
When this concept dawns on ET, I will come back here to remind you of this - if I am expelled, kindly give me permission to make just one post .....
Cash may be king for short periods but I just can't see it being able to achieve 20% annually over 25 years by merely holding it.
Are you talking Federal Reserve Notes or a different currency? Perhaps interchanging holdings between multiple currencies through the years?
Mind you that the real estate I am talking about for the purpose in this thread provides CASH FLOW monthly. But without the real estate the cash doesn't flow in to "ones" account.
I like the REIT idea that a poster brought up. No toilets to fix or tenants to tend to.
Stocks, REits, commodities, Currencies, Futures, cash, and of course the Investment Manager's decisions are the key to achieving 20% annually.
The "investment manager" is the main key for the ultimate success.
Interesting to see what others thoughts were on the subject .