I saw a chart (on another thread here) showing the amazing correlation between the equity markets and QE2. It was an amazing eye-opener for me. In the event that the $US4B/day stops being pumped into the market, only one thing can happen, right? Come June, we're going to see a whopping great big slump, no? For those without a SMSF, is the best option to convert your industry/retail fund to the cash option before June? Thoughts?
Yes. It does seem that QE3 is inevitable... but how long will the gap be between QE2 & QE3 (if there is a gap)?
can someone send me a link to what is qe2 qe3...unless its just quarter 2? i see it everywhere but still dont know what it is
Basically printing money... http://en.m.wikipedia.org/wiki/Quantitative_easing http://www.businessinsider.com/what-is-quantitative-easing-2010-8 http://www.investopedia.com/terms/q/quantitative-easing.asp Most think it will lead to inflation. Barnacle thinks otherwise...or does he? Sorry, iPhone autocorrect corrects Bernanke to barnacle... Ironic, really.
Thanks HBJ. Those were the ones I was looking for... What to do then? Put your super into cash? What else by June?
The debt ceiling keeps getting elevated on a monthly basis, doesn't it? Over $US200B for Feb alone....Treasury asks Congress for permission each month...and they've never been denied. Though, there was more consternation and gnashing of teeth last month, than ever before. Congress (at least some members) is getting anxious...
And how can we read between the lines of what The Fed puts out? Expect a polar opposite to what they say? 'No inflationary pressures' equates to 'Welcome to the Weimar Republic of Zimbabwe!'
Best option - get a SMSF. Get your retirement away from Gillard and Co. and under your own control, keep your head down and manage your own diversified portfolio (Gold/Silver/Cash/a punt on miners - maybe after the correction/Real Estate - as/when prices bottom/etc.) Don't know how to start a SMSF - see your accountant. Want the Government to force feed you government bonds as a Superannuation industry "reform" for the long-term "safety" of investors - keep your retail fund. Or - talk to your financial advisor!
super is such a scam...opened my eyes i don't have a huge amount, but over the last 8 years of my full time working life, if i had put it all in a rolling term deposit..i would be WAY ahead.... over the last week it has just dipped 10% in total for both my wife and I. my SMSF is finally setup...should i bite the bullet and just roll over OR wait for it to recover abit? my gut tells me to just roll over and cut my losses right NOW
Cutting your losses would be sensible. The market has more than likely topped and is now looking at an intermediate-term decline which will likely be huge. With the major equity indices seemingly further away from their recent February highs, it appears that the 2nd shoulder has been completed and that the trend will be down - until everything flips (ie, QE-infinity, Hyperinflation)- which won't be for quite some time (that time frame is anywhere from 12-24 months). In the meantime, gold and USD are adequate hedges against downward movements in the AUD as the AUD will get destroyed through real estate market crashes and commodity price declines, at least temporarily. You don't want to stay in USD for very long though, before it all flips you will want to look at gold/silver mining stocks, and physical metals. Physical metals and GDX, GDXJ and SIL would be the safest bet against runaway inflation.
I have already put all my super in cash due to the recent events.. but before QE2 is due to end, you will get alot of people selling out 'just in case' there is no QE3, and this will make the market go down. Even if QE3 is approved, i heard it takes time for the funds to actually be made available due to red tape so during this period stocks may fall because there wont be any money to purchase shares. PM's (which will be forever ongoing re my purchases), save cash and pay down debt. Thats my plan for the next 6 months at least
IMHO Shows your starting to get a clearer view of a very fluid and complex situation. To be sure of anything,at the moment,is not an available option. For me ,safety is in gold,and thats not absolutly certain either. But it's the best two way bet to preserve capital. I'm not trying to make money. The people who worry me are the ones acting as if there is nothing unusual happening.
ditto. There is a sense of unreality out there. Though Eye on Australia report just out shows that people are fearful and pulling back consumption, so instinctively I think people are picking up the ideas but they're not educated enough to work out step 2. They believe that 'saving' will save them.
