I’m curious were there many outliers during the GFC, there must have been some stocks that bucked the trend and rose in a falling market or bounced back very quickly compared to the majority of stocks, would be interesting to see an article detailing this as opposed to the all out doom and gloom (which is probably warranted imo).
Following this latest reduction in the Cash Rate less than 20% of mortgagors will reduce their mortgage payments. We are more financial literate today than in decades past and that combined with the Law of Diminishing Returns are just two of the multitude of reasons as to why Monetary Police is ineffective. Cannot believe that so called respected economists support measures that are designed to pressure people not to save, not just for a few months, but for decades.
Neither can I David. I guess in the long run the fate of assets vs cash depends upon whether govts will have to start actual money printing. Proponents of the Magic Money Tree think that will work. With Covid-19 now through the uncontained borders of Europe it will be interesting to see what the ECB does; not much room to cut there. It seems to me containment is what needs to be focused on with possible short term support to targeted business, not another generalised cash injection borrowed from the future to prop up markets.
Thanks David, a society built on debt is like a sandcastle. It's just waiting for a wave to come in and knock it down.