Alec Hogg: 52 trillion reasons to stay heavily invested in our share portfolio
I'm expecting another good turnout in tomorrow's Premium-member-only webinar updating the BizNews share portfolio. Hope you're able to join in. With our holdings in exponentially growing businesses continuing to boom, there are sure to be questions whether it's now be time to cash in the chips after such an amazing run (30%pa compound since December 2014 launch).
Data released on Friday by the Institute of International Finance will support the answer offered throughout the past six years: Stay invested. The future of share prices is being determined by the law of supply and demand. The growing mountain of State-created debt eventually finds its way into tangible assets. For now, that means the shares of growing companies.
In Friday's statement, the IIF referred to a 'debt tsunami' instigated by governments worldwide. Politicians have created cash at an unprecedented rate in response to the Covid-19 pandemic. For context, during the four years between 2012 and 2016, global debt grew by $6trn. In the four years to end 2020, the IIF reports, growth has been $52trn. Yes, a stunning eight times more.
___STEADY_PAYWALL___