Comments by "Tasty Pymp" (@tastypymp1287) on "Investment Checklist" video.

  1. The asset return graph is critical. It shows every asset outpacing inflation. How can this be? Think of double entry accounting, whereby every liability is matched to every asset. One cannot exceed the other. So all global assets must match all money supply. This is because currency is the measure of all value and instrument of all transactions. Ultimately, currency represents a promise to pay. It is the liability against the asset. Do they match? Have we equilibrium? Because the actual valuations suggest assets often exceed money base and supply, which exposes a liquidity issue in any scenario where investors rapidly and collectively attempt to realise the value of their assets into currency. There simply isn't enough to cover all the liabilities and transfer assets into cash. There isn't enough to keep the promise. This is the precipitation of a financial crisis. It seems possible that assets, collectively, are mostly overvalued compared to the money supply they are valued in. This phenomena is caused by speculation. The reality is exposed once fear enters the mind of investors, then the lenders of last resort have to plug the gap.
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  2. Equities aren't 'inflation busting'. They are inflation!! Financial alchemy, the science of turning actual inflation in prices due to money supply, into growth in an asset class.
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  3. @Ed Wyatt  It's all misleading. Real returns are important, because essentially investors are looking to beat inflation and then the risk free rate (if it's higher than inflation). It doesn't matter about gold from 1970. Value is merely a comparison against other items of value. How gold performed against inflation and other asset classes from 1970 is the important metric.
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