Trading QE Environment, Invest more in Super?

Discussion in 'Share Investing Strategies, Theories & Education' started by Archaon, 20th Oct, 2019.

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  1. Archaon

    Archaon Well-Known Member

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    Hey all,

    Just had a thought come to me, in a QE (Quantitive-Easing) environment, would it be beneficial to invest in Super instead of property as the hyper-inflation would have a compounding effect within super?

    Is there downsides to super within a QE environment as well that may negate the benefits?

    Regards,
    Arc
     
  2. Trainee

    Trainee Well-Known Member

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    Super is a vehicle, not an investment. What will the super fund do with the money?

    What does hyper inflation compounding in super mean, as opposed to anywhere else?
     
  3. Archaon

    Archaon Well-Known Member

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    Navigate the waters of Sharentrading over the long term better than I can!

    On a serious note, the lower tax rates and industry super funds low fees etc, allow compounding to do its thing over the long term.
     
  4. Trainee

    Trainee Well-Known Member

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    well ok but what does that have to do with hyperinflation?

    Super has low tax but restrictions on gearing, use, and withdrawal. Nothing to do with inflation.
     
  5. Archaon

    Archaon Well-Known Member

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    The equities that the super funds invest in, much like property, will be safer vehicles as the value of the dollar decreases, would they not?
     
  6. ChrisP73

    ChrisP73 Well-Known Member

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    I wouldn't be too concerned about any of the "flations". Just invest in growth assets that you're comfortable with. Real-estate, shares, businesses etc. Consider some moderate leverage as a short against inflation. If you're worried about Armageddon, stuff something liquid or portable where you can get to it but what ever you're concerned about can't.
     
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  7. Archaon

    Archaon Well-Known Member

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    I'm more hoping to spark conversation around a Hypothetical QE environment, and perhaps draw on the knowledge of those much smarter than I.
     
  8. willy1111

    willy1111 Well-Known Member

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    What happened to the S&P500 when the US started QE...up 200 odd %
     
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  9. Archaon

    Archaon Well-Known Member

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    So that is evidence in favour of added super contributions?
     
  10. Trainee

    Trainee Well-Known Member

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    As opposed to just investing in the s&p outside super?
     
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  11. mtat

    mtat Well-Known Member

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    Tax benefits.

    As an investment vehicle super doesn't have any magical benefits.
     
  12. blob2004

    blob2004 Well-Known Member

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    I don't really understand the question. What makes you think QE will lead to hyperinflation? Japan has been doing QE for years, followed by the USA, do you see any hyperinflation anywhere?

    Investing in Super is always better than investing outside regardless of inflation because of tax benefits.
     

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