I’m a financial amateur, but my 2 cents on how I see the world & would love any comment ? (But still think 1 plus 1 adds too 2 and always end up best)

If one has a capital preservation view on ones assets today, my conclusion & all be it not sophisticated are as follows ---

Although cash yield exposure in the developed economies in real terms is giving one – (minus) 1 on average if one places a reasonable amount in cash deposits (& the banking industry is not 100% safe with their sovereign debt exposures, but one can try only deal with safer banks), I can’t see any reasons buying equities until there are clear signs that when government removes all the crutches what the real picture of these corporates are, do u agree ?

Then the returns on reasonable good corp debt u might as well be in term deposits plus the new Dodd-Frank financial reform bill with its seizure risk built in, how can one in my opinion buy corp debt at such low yield with such risk ?, the risk return does not stack up for me ? (PS think venture capital has also seen a blow with this bill with all the new red tape, especially when doing angel financing ?)

I’m a financial amateur & real interested if ones horizon is capital preservation why one should look at government debt, corp debt & equities ?

Then currency has more angles to it than any other asset class (OK cash is not a tangible asset), but why not be diversified in currency (staying in the big 3 predominantly & the rest in economies that have a clean nose & run there affairs like a decent business does ?) & wait it out till this madness of putting crutches under everything is over ?

What I don’t have an answer for is when the big inflation kicks in maybe in 2 years time, how to prepare ones assets for this event ?

As a zero expert my advice to all the experts would be & has been for 2 years is let’s let the bad news happen, get it over with & move on, but until then we in for a directionless yo yo ride, anyone agree or not ?

Thanks

Jacques