westcoastfella wrote:This article calculates global QE at 12 trillion, since 2008, so he's not far off. The US was not the only country to flood the market with money...
If Jim has chosen to be cash rich, I assume its because he's hedging his bets on a significant drop in housing and/or financial markets - there is simply no other reason to allow your assets to waste away to inflation. This does not make Jim stupid, and whether his bet pans out remains to be seen - Jim may have the last laugh in the long run. I know a few people that sold all their financial assets and went to cash in 2012, 2013, 2014 and so on, thinking the top was in and the next depression was nearly upon us. Instead they missed out on some great market gains, and are either grudgingly reinvesting or continuing to wait out. But who knows what the future will bring.
#1 hes not cash rich, he had a condo. Yet he claims he has a E550 and travels so much he claims to have diamond travel rewards card or some Sears loyalty card or some crap.
#2 he himself claims after selling his primary condo, he purchased another 1 bedroom presale to live in.
#3 hes proved time again he dosent know shit about economics or finance. As I just posted a rebuttal to his Quantative Easing bullshit.
#4 Selling all your assets into a cash position is called a naked short. It's not hedging, hedging would indicate he would have a opposite position. Selling everything into cash including your primary residence is called stupid and trying to time the market. Rule #1 in investments is NEVER try to time the market.
If he had a primary residence and he sold his rental property to "hedge" against a crash that would be fine. But this clown time in and time out has made it clear, he sold in order for a crash to occur so he can buy back in.
I'm telling you guys right now, its a simple supply and demand at the moment. It's not complicated and its not a conspiracy.
When there reaches a saturation point where everyone who needs a house and OR who can afford one is met. Then the prices will correct.