Terms of safety thatobviously depends on what governmentwere talking about but that’s basicallyyou know where things kind of sit interms of at the moment you know bondsare just very expensive in pretty muchevery circumstance and that’s becausepeople want that safety around it thathasn’t really you know evaporated yetfrom the GFC even though that was anumber of years ago now if we look atother asset classes that havetraditionally provided.
you know halfdecent yields at least infrastructure isa key one it’s considered to be a prettylow risk play there’s still thepotential for capital growth over timeto give you an example of someinfrastructure kind of place we’retalking about like toll roads andairports stuff like that infrastructureis very expensive right now you knowlast couple years evaluations have beenvery stretched yields are still okay notfantastic but these have often becomevery leveraged instruments now if youlook at sydney airport for example deadis about eight to one against equity sowhether that
something you want to beinvested in that’s you know going to beup to you but really infrastructure isvery very expensive in terms ofvaluations and they are there’s been alot of activity there so you need to becareful investing in infrastructureright now that being said you know I’mnot saying that infrastructure is goingto underperform it certainly is veryloved right now but if we look at it interms of comparing the valuations withother asset classes infrastructure iscertainly not cheap then if we go andlook at say
commercial property bycomparison you know we’re talking aboutmainly you know if we look at over allthe stuff that we can easily measure ifwe look at shopping malls office spaceslarge warehouses stuff like that youknow prices are trading at very veryhigh levels and on very modest yields inmany cases and commercial property hashad a huge run over the last couple ofyears we’ve seen massive gains in termsof the actual capital values there so ifyou were actually you know holding a lotof commercial property a couple of yearsago you’ve done very well as you wouldhave in a lot of residential areas iguess as well but certainly there’s noyou know it’s not where you want to
belooking right now for very very highsafe yield i mean if you can find it ini guess out of the box places and stuffthat other people have had troublefinancing or the stuff that’s too smallfor institutional interest then theremay be you know it may be a differentstory but if we look at it again just interms of comparing asset classes and tocompare valuations and certainly youknow commercial property is not exactlyofferinga very very you
know cheap optionsomething else I want to quickly touchon as well as that you know while peopleare often you know they get scared awayby the concept that you know assets aretrading at all-time highs you know thatactually is the norm if we look at say ahundred year scale then you know assetprices typically go up over time rightand for them to go up over time theyhave to keep trading higher and higherand so as they trade higher and higheryou know they’re going to sit onall-time highs and yeah the media isgoing to go well you
know things moreexpensive than they’ve ever been and youknow all the scared people will stayscared and they’ll say oh you shouldn’tbuy now things are as expensive as I’veever been but then when something is youknow going down and value they say ohwell you couldn’t buy now if you knowthings are going to get worse so youknow it really comes down to yourperspective I think