Wednesday, December 11, 2013

People hate to hold cash right now

I think what people hate today is essentially to hold cash and my sense is that the return from equities will be very muted in the next few years. 

Maybe you will make something like 5-10 percent per annum, but even that would be a very high return considering that in the western world - in eurozone, in America and in Japan you have essentially zero interest rates. 

So if equity investors make 5 percent per annum, it is actually a very higher return.