Trading QE Environment, Invest more in Super?

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

 

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?

 

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.

 

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.

 

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?

 

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.

 

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

 

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

 

So that is evidence in favour of added super contributions?

 

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

 

Tax benefits.

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

 

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.