Assets are the lifeblood of the economy. They enable us to store, transfer, and create wealth. Historically, investors have allocated the great majority of their capital into “financial assets” such as stocks, bonds and cash.
I never liked this approach because:
(1) Stocks are generally risky and efficiently priced.
(2) Bonds provide mediocre returns.
(3) Cash does not protect against inflation.
This is especially true today with stocks back at all-time highs with stretched valuations in a late cycle economy…
And interest rates at such ridiculously low levels that they may not even cover inflation