Afamiii

Lessons from Benjamin Graham, Part 1

This is perhaps the other reason that the customers (of Wall Street) don't have yachts.

On Mar 12 02:02 PM Afamiii wrote:

>
> In all labour there is profit (proverbs 14:23.)
>
> It is not our investments that will make us rich they only sustain
> and multiply the wealth which emanates from our labour. smartinvestorafrica.co...

Lessons from Benjamin Graham, Part 1

Deflation, inflation, hyperinflation, recession one thing I have learn't in life is that it is very difficult to predict the future. The 3 body problem and the whole of chaos theory and fractal algebra is sufficient proof for me that the complex interactions of more than 3 players cannot be predicted with any degree of certainty.

So if we must look to the future we are left only with probabilities and the probability is that over the next five years (and that is really the only practical time period to look at - whilst 10 years is the longest time period that has real meaning) there will be either inflation or deflation.

Which ever we have, I doubt if it will spare any asset class (definately not stocks, nor real estate, even bonds will be hurt by deflation as well as inflation) the real questions are which asset classes will be punished the least AND as an investor do I want to be focused on income or capital gains.

Funnily enough the answer to the investors dilema has not changed from what it would have been 24 months ago. Have a good balance between quality stocks, quality bonds, quality real estate and cash - bought at fair prices. And at the end of the day you will come out with most of your capital intact and if things don't get too bad with a reasonable gain.

In all labour there is profit (proverbs 14:23.)

It is not our investments that will make us rich they only sustain and multiply the wealth which emanates from our labour. smartinvestorafrica.co...