Whenever I look at my Super Fund, technology jumps out to me. Since we have had our SMSF, most of the growth has been driven by two innovative stocks – Cochlear and CSL whose growth has been stellar.
But, with technology it can be a wild ride; we have invested in some duds over the years which were great ideas but no longer exist.
The reverse is true with property – property, and especially land, will always exist. And despite all the recent talk of boom-and-bust, property investment is nothing like the wild ride of technology stocks.
There is a lot of talk about cryptocurrencies at the moment – certainly they point to the future. But just like the dot com bubble, not all will survive. Picking the winners will be the challenge. When the dot com bubble burst, there was a lot of blood spilt.
This chart below from the Australian Financial Review sums it up very nicely; asset classes perform differently; shares have highs and lows (technology even more so) while Australian bonds are safe and predictable (if not stellar).
It’s a bit like my radio station choice; Triple J has some of the more innovative stuff – but which of these bands will be around in a year’s time?
One the other-hand, Triple M’s playlist is predictable but safe. There’s nothing spectacular about AC/DC or U2; but they are solid and you know they will be around for years to come
Investing in cryptocurrencies, equities or property is all well-and-good. You have to know what you are doing and go in with your eyes and ears open – no matter which station.
If you want to talk to me about the latest bands or how to invest in property, please contact me on 1300 30 67 67