ETFs - Robert says, you don't know what you own any more. If you dig under the bonnet of many of these ETFs, there are are more risks that you do not know about. Robert worries about potential lack of liquidity and gapping for many ETFs.
Cause of recessions:
bank lending more into higher prices (as we have seen in recent years)
eg even equities can cause a recession - eg a crash when banks call in their lending, leading to a consumption strike.
A key indicator of recession - bank lending,
Australia's bank lending warning light is on - Robert Gay thinks this may well be a major cause of Australia's next recession.
Robert pointed out the IMF's research/guidelines that when total debt/GDP of a country is greater than 70pc, the economy is vulnerable to a crash/crisis. Clearly Australian is a long way into this territory.
Because of these issues, Robert thinks you needs to be considering your strategy options to deal with these eventualities.
I'm busy working on my blog posts. Watch this space!