I stay away from Government Debt for AAA Corporate Debt or Equities. The Crisis we see unfolding daily in the news is a crisis in Government and Government Debt. Governments are CHRONIC defaulters, and they love to hide their default as something else like the US did in 1933, a Default with holders of the Liberty Bond taking a 90% loss.
The Crisis is in Government and Government Debt and the Flight To Quality is Blue Chip Equities, Real Estate and other Real Assets, and yes, Corporate Debt and Blue Chip Stock are Real Assets.
Really interesting read so far Rohit, looking forward to seeing the spreadsheets.
I currently invest in rental properties mainly as I consider them a pretty safe haven that allows me to retain control over how that investment performs.
I hold ISA’s and high rate business savings accounts too.
I’ve avoided stocks and shares as my lack of market knowledge and the current state of the world make me nervous about them!
The Crisis is in Government and Government Debt. Interestingly, for every dollar in Equites, there are 10 dollars in Government Debt. Where do you think all that money is going to go when it realizes the Government is going to default, and they will...Equities. During WW1 and WW2, capital fled the war into US Equities, as it is doing today.
Blue Chip Equity will survive the Crisis in Government and their debt which is unsecured and they will default on and try to print away.
Wonder why collectibles have sky rocketed in recent years? Money getting off the grid as Government Defaults steam roll forward.
ETF often have up to 20% of assets in Government Debt by the way.
That is unconventional but very wise at this time with the greatest risk being the Unsecured Debt of Governments. Be ware, ETF's carry anywhere from 10 to 20% Government Debt as part of their asset allocation. The biggest move will be in Blue Chips with the DOW being the Creme dela Creme, that is where the Big Movers will go to.
Thank you so much for this comment. I'm really glad you are enjoying the posts, I'm really enjoying writing them.
I know what you mean about stocks and shares, things look really volatile at the moment. Hopefully my posts 3.4-3.6 on equities/stocks/index funds will be helpful for you.
Thanks also for sharing your assets — that's really helpful context.
Actually, as someone who doesn’t currently own rental properties, I was wondering if I might quickly pick your brain to help improve the Escape Calculator:
Specifically: if someone owns multiple properties, each with separate mortgages, would you personally prefer to track them separately (property asset and mortgage individually) — or consolidate them for simplicity?
I’d really value your thoughts — I'd like the tool to be as useful and practical as possible for a wide range of people.
Hi, I think it may be useful to be able to add them separately but it’s difficult to say without seeing the calculator and its setup first.
For example, if the escape calculator splits up business and personal assets then it’s definitely better separately. I own all mine through a limited company SPV, but others may have a mix of personally owned and business owned properties
By the way, I came across you through my sister as I believe she used to work with you (Abi) and she knew this would be of interest to me!
Ah great - thank you. At the moment the escape calculator doesn't split up personal or business assets, I think that in a spreadsheet may be a bit overwhelming for most people!
I appreciate that splitting them up will help to see the end goal better, as they will have different mortgages with different terms and rates.
It should be simple to do - how many properties would be a good number to have on there that would help most people like yourself? Up to 5? 10?
Yes I remember Abi well! I'm really glad you are both reading!
Great. Thank you for this feedback - I think with the calculator I'm going to do a pre-release to people who are interested in testing it before the final release - so I can get feedback and make it as useful and realistic as possible. Would you be interested in being involved?
I stay away from Government Debt for AAA Corporate Debt or Equities. The Crisis we see unfolding daily in the news is a crisis in Government and Government Debt. Governments are CHRONIC defaulters, and they love to hide their default as something else like the US did in 1933, a Default with holders of the Liberty Bond taking a 90% loss.
The Crisis is in Government and Government Debt and the Flight To Quality is Blue Chip Equities, Real Estate and other Real Assets, and yes, Corporate Debt and Blue Chip Stock are Real Assets.
Really interesting read so far Rohit, looking forward to seeing the spreadsheets.
I currently invest in rental properties mainly as I consider them a pretty safe haven that allows me to retain control over how that investment performs.
I hold ISA’s and high rate business savings accounts too.
I’ve avoided stocks and shares as my lack of market knowledge and the current state of the world make me nervous about them!
Great work, looking forward to the next bits.
Andy
The Crisis is in Government and Government Debt. Interestingly, for every dollar in Equites, there are 10 dollars in Government Debt. Where do you think all that money is going to go when it realizes the Government is going to default, and they will...Equities. During WW1 and WW2, capital fled the war into US Equities, as it is doing today.
Blue Chip Equity will survive the Crisis in Government and their debt which is unsecured and they will default on and try to print away.
Wonder why collectibles have sky rocketed in recent years? Money getting off the grid as Government Defaults steam roll forward.
ETF often have up to 20% of assets in Government Debt by the way.
Yes my strategy at the moment is 100% equities
That is unconventional but very wise at this time with the greatest risk being the Unsecured Debt of Governments. Be ware, ETF's carry anywhere from 10 to 20% Government Debt as part of their asset allocation. The biggest move will be in Blue Chips with the DOW being the Creme dela Creme, that is where the Big Movers will go to.
Hi Andy,
Thank you so much for this comment. I'm really glad you are enjoying the posts, I'm really enjoying writing them.
I know what you mean about stocks and shares, things look really volatile at the moment. Hopefully my posts 3.4-3.6 on equities/stocks/index funds will be helpful for you.
Thanks also for sharing your assets — that's really helpful context.
Actually, as someone who doesn’t currently own rental properties, I was wondering if I might quickly pick your brain to help improve the Escape Calculator:
Specifically: if someone owns multiple properties, each with separate mortgages, would you personally prefer to track them separately (property asset and mortgage individually) — or consolidate them for simplicity?
I’d really value your thoughts — I'd like the tool to be as useful and practical as possible for a wide range of people.
Have a great weekend, and thanks for the support!
Rohit
Hi, I think it may be useful to be able to add them separately but it’s difficult to say without seeing the calculator and its setup first.
For example, if the escape calculator splits up business and personal assets then it’s definitely better separately. I own all mine through a limited company SPV, but others may have a mix of personally owned and business owned properties
By the way, I came across you through my sister as I believe she used to work with you (Abi) and she knew this would be of interest to me!
Ah great - thank you. At the moment the escape calculator doesn't split up personal or business assets, I think that in a spreadsheet may be a bit overwhelming for most people!
I appreciate that splitting them up will help to see the end goal better, as they will have different mortgages with different terms and rates.
It should be simple to do - how many properties would be a good number to have on there that would help most people like yourself? Up to 5? 10?
Yes I remember Abi well! I'm really glad you are both reading!
Upto ten would be ideal thanks Rohit 👍
Great. Thank you for this feedback - I think with the calculator I'm going to do a pre-release to people who are interested in testing it before the final release - so I can get feedback and make it as useful and realistic as possible. Would you be interested in being involved?
Absolutely! Ping it across at any point to andrewdyce@sky.com and I’ll have a play about with it