Investment Clock

As I understand this, http://www.paritech.com.au/paritech-...gies/clock.asp shares rise before property. Or after. In other words, when property booms money follows it, and when it crashes (goes quiet) the money flees to equities.

But what about the current situation? It seems to me that both property and shares around the world are booming which runs counter to the clock. There is a disconnect somewhere.

I can guess that the net savings of Asian people and well-off Westerners are chasing capital investments of both kinds.

So where does it end? And more importantly, where is the smart money moving to? Gold? What are the contrarian strategies being adopted? My portfolio jumped $10,000 overnight and I'm delighted but nervous. :D

The investment clock is only a rule of thumb anyway. Baby boomer savings and associated government policy are wacking accepted norms about. It will be a two edged sword. That massive savings inflow inflating asset prices will be a mighty tide to stem on the way out. A hit to confidence is all it takes.

Well property is not just driven by the supply of easy money, population growth being the biggest driver IMHO.

But where NZ stands on that clock i would guess at about 12:30. I'd suspect Aussie would be about the same.