The psychology if knowing you are “charting your own course”. Thus my general caution with any enterprise about economic forces and motivations which we can only partially grasp.
Herd mentality or as my wife says “monkey see, monkey do” is a huge force.
But if we go back to Greenspans reaction to the 87 crash, lowering rates, smoothing the markets has been more and more a priority.
In some ways, it is surprising how long it too the real estate market to catch up to the financial markets (realizing the effect of govt support) via bond buying/quantitative easing/fiscal policy.
So much of the neoclassical book on economics has been put on the shelf. We’re all Keynesians now. Growing up, I never thought that would happen.
It annoys my 15 y.o. son when I talk too much about this.
Needless to say, not just talking my book but policy favors a portfolio of real estate/stocks maybe with a touch of gold. I don’t think I’d want more than 1-3% allocation to crypto but it is clearly on the upswing.
Main message is that cash is for short term needs but not really an asset to hold any more unless you are in the ultra high wealth. It’s just as good to have an asset to borrow against when needed with Helocs at 2.25%.
These policies have made our common fate more interwoven and we are more interconnected that we realize. I could go on. Getting vaccinated next week and look forward to more face to face engagements in the month after.
