The debate has come to a close and according to Peter S. Jarvis, debate moderator, we have a winner!
He summed up by saying “at the end of another Canadian Investment Review debate, it’s fair to ask what ground has been covered and what if anything has been introduced that might change one’s minds.”
Jarvis thinks the short answer is not a lot and little to change one’s view or bias coming into the debate. Perhaps this is because not much really has changed or perhaps because the debate is here in Canada as opposed to somewhere else. Maybe it’s because the issue of market timing is always tough because it’s so subjective. (Want to read Jarvis’ summation?)
The votes were 75% pro and 25% against the thought that now is the time to invest in real estate and the consensus was that small, medium and large pension plans are seeing the returns after making the investment.
The next online debate will focus on inflation vs. deflation. Policymakers around the world have responded to the financial crisis through massive fiscal stimulus. As governments determine how best to withdraw all the money they pumped into the system, many economists believe that sooner or later, there’s got to be a big upsurge in inflation. Others think deflation is the biggest risk going forward.
Do plan sponsors need to get ready for a period of major inflation? Or will they soon see a diminution of asset prices?