My Doom and Gloom Dad

Hi Scott,
 
My dad and I are classic doomers. Dad would often speak around the dining table about the looming subprime mortgage crisis — among other things, like public debt, and the devil in credit cards — when I was a teen. Now I am a Millennial who turned 30 this year.  
 
I have a modest but secure(ish) job in the Queensland Public Service, and was rattled to see my superannuation wiped by the corona-crash. Naturally, I went to my father for advice. He told me a huge crash is coming and to put my super into cash. However, I have seen it recover very quickly. So is my dad an economic genius or is this all pure coincidence? 

Jim

Hey Jim,
 
How lucky are you to have had serious, meaty discussions over the family dinner table growing up!
 
Now, no one can predict the future, yet you should internalise the real message your old man is giving you: 
 
“Life is risky, so be sensible with your money.”
 
But what about his suggestion to move to cash?
 
Well, I wouldn’t do it.
 
That’s because I worry that all this money-printing will at some stage lead to inflation: if inflation averages just 2.5% per year, then after 15 years a third of your purchasing power is gone. After 30 years, more than half the real value is gone. 
 
You need to outrun inflation, and historically the best way to do that is by investing in the share market.
 
Know this: investing, like parenting, is the ultimate act of faith. 
 
Things are never clear. There are no guarantees. You just put your best foot forward. 
 
It sounds like you have an awesome dad. So learn from his wisdom, plan for the worst, and hope for the best.

Scott