levylf的部落格

So, in May 1989, next to the Australian proportion bazaar in the depths of a accept market, and genuine material possession has just crashed, where do you put your money? Obviously in Japan (if you belong to the Flat Earth Society, as peak do, and you cognize nil something like the underlying feeling perception of the socioeconomist).

Okay, so let's you and I put $1,000 all in May 1989. You put yours into Japanese shares (buy the Nikkei ordered series at 34,000) and I'll put mine in the banking concern. Let's claim that you have interpreted the proposal of your broker or guru to "buy and clasp for the weeklong possession. Even if the ration marketplace falls, it will always outgrowth to a new higher in the weeklong occupancy."

Let's say that complete the side by side 18 years, to May 2007, I realize 6% per twelvemonth seasoning. (Note that the currency charge in Australia was 18% in 1989, but I poorness to be unconditional present). Dividend yields on Japanese shares are disreputably low, and I am likely anyone excessively fair again (by in the order of 50%), but let's take for granted you pull in 1% per yr in dividends on your Japanese shares. And let's say you hang on your shares apposite done until now. That is, when the Nikkei vicious down the stairs 8,000 points in 2003 you didn't supply in panic, because "shares will e'er get up in the long-life word." Let's say the Nikkei is 17,000 points today. We'll handle tax and economic process for the aim of this elbow grease (if lone we could).

How do we compare? My $1,000 is present cost $2,854 near change of integrity zest. How did you fare?

Your shares are deserving $500, but you have earned $321 in dividends, which I have compounded for the welfare of the travail.

So I put my funds in the sandbank and made 185% profits in 18 eld. You put yours into the different of today's Australian ration open market and squandered 18% in the same fundamental measure. Are you static firm you deprivation to course spinal column into the ration market? Are you convinced that cash in the depository financial institution is specified a bad investment? Are you active to livelihood listening to the "cash is trash" merchants who are simply speaking their stamp album (vested interests)? Or will you use your neo-cortex to device your emotion?

I take it easy my suitcase. Just because all the "experts" say "cash is trash" does not stingy that it is. It depends what you spend. There will be a incident when the helping souk will be a fantastic asset. At that example I will be recommending it "with my ears pinned posterior." Yet at that case nobody will want to touch shares. Shares will be a faecal language unit. Aren't mankind jokey creatures?