As we become more innovative, it gets harder and harder to get on the index and be one of the biggest firms in your country.\u00a0 <\/span>It was considered innovative 200 years ago to have invented a three wheeled car, after horseback went out of fashion.\u00a0 <\/span>These days, you might need to invent a car which is the most fuel efficient in history or can fly, to break into the top 100 companies in the US as a new company!<\/p>\n\n\n\n So the market is self cleaning.\u00a0 <\/span>Most businesspeople are confident about their own business growing, The same dynamic doesn\u2019t exist for property or gold.\u00a0 <\/span>The supply of gold is quite stable, and demand goes up and down.\u00a0 <\/span>So it fluctuates, not losing or gaining a lot of value over long periods of time.\u00a0 <\/span>Ever the biggest gold bugs say gold is a good store of wealth, meaning it holds its value.\u00a0 <\/span>It does hold its value, but it doesn\u2019t grow by much.<\/p>\n\n\n\n Housing has outperformed gold, especially since the 1980s, but the dynamic isn\u2019t completely different. <\/span>Housing stock is relatively stable, unless a government decides to go on a huge house building program. <\/span>Demand is stable in smaller towns, and going up in big cities. <\/span>Long-term, the market can\u2019t exist without first time buyers. As many first time buyers can\u2019t buy now, there is only so far the market can go. <\/span><\/p>\n\n\n\n So the conditions for growth exist in equities, which simply don\u2019t for these assets. <\/span>If stocks are ever down over a 50 year period for the first time in history, moreover, then we are all in deep trouble. <\/span>No asset would be safe and democracy itself and the institutions we have gotten used to would be in trouble. <\/span><\/p>\n\n\n\n This is because if stocks underperform for a short period of time, then sure other assets such as cash, gold or property can outperform without risking the whole system collapsing.\u00a0 \u00a0 <\/span>Stocks have underperformed before.\u00a0 <\/span>But the fact that the Institutions of the United States almost collapsed during the Great Recession, despite the fact that asset prices increased in real terms within a decade due to the deflation, should tell you what would happen if something much worse happened. \u00a0<\/span><\/p>\n\n\n\n Your property wouldn\u2019t be safe from theft or confiscation if the economy was so bad in 2068 that the largest companies aren\u2019t more efficient then than in 2018!\u00a0 <\/span>Your cash my not be worth much due to government efforts to stimulate this 50 year recession, and how much would government bonds be worth?<\/p>\n\n\n\n![\"\"](\"https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/69_a_photo_of_a_three_wheeled_car_after_horseback._952f4e63-8756-4f75-bf20-84eb5c36354f-512x512.png\")
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