The difference between them is huge. Conservative investors view cash and bonds as safe and secure assets. Stock holders are deemed to be risk takers. In this financial crisis, many countries central banks and people who hold cash and bonds, paying 1-3% are going to be short changed.
China, Japan, Korea, Singapore are all going to face losing purchasing power in their value of US Treasury bonds and cash. This is because we are likely to face with high rates of inflation (may be as high as 8-10%) for many years as major countries including Singapore printed huge amount of dollars. Sophisticated investors are already holding real assets like gold, silver and stocks of great companies that can increase prices of their products.
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