On behalf of everyone at Australian Diamond Portfolio, we’d like to share our well-wishes to everyone impacted by the ongoing threat from COVID-19, especially those living with the lockdowns in Victoria.
The impact that it is having at a human and economic level is for many of us totally unprecedented, with the disruption that it is causing likely to take many years to recover from.
From an investment standpoint, COVID-19 related developments both in Australia and overseas reinforce many of the messages we regularly communicate in our ‘In the Loupe’ articles.
Investors will need to think differently, and act differently in the years ahead if they want to build wealth. Cash is set to lose real value for decades to come, stock markets will remain volatile, and property faces serious headwinds, with credit growth at its lowest levels since the 1992 recession, and a massive glut of supply about to hit the market.
All those factors reinforce the benefits of looking at assets like pink diamonds, both as a portfolio diversifier, an alternative asset for long-term capital gain, and an inflation hedge.
That last point is getting ever more relevant with the world looking like it will embrace MMT in the years to come.