Quote of the week – SMSF’s take note!

Posted | 01/10/2014 / Views | 1981
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In a recent article Vern Gowdie outlined the dangers of being heavy in shares at a time when markets are looking ‘toppy’ from a valuation (P/E) perspective as they are now, especially for those in or approaching retirement and relying on their investments for their remaining years.

“In my opinion, the Fed has constructed a paper bridge across the ravine that separates the 2007 peak from the 2014 peak. As more people are persuaded to embark on the journey to the land of promised riches, the paper bridge is likely to collapse under the weight.

The fall into the abyss below will destroy a lot of retirement dreams.

On this point, I agree with [analyst] John that ‘valuation ratios tell us so clearly the market is overvalued as they do now’.

There are times in the investment cycle to be cavalier and times to be cautious. For those approaching retirement, now is the time for the latter.”

Gold and silver traditionally outperform when shares correct.  Most super funds are heavily weighted to shares.  Gold and silver bullion are allowable investments in a Self Managed Super Fund, a super fund that YOU take control of.   You can read more on investing in gold and silver SMSF’s here.