Risk of inflation

Global assets (ie stocks and properties) are now at historically high level. They are fueled by low interest rate. The global economies are booming.

I read a news report that the booming global economies will lead to higher wages. Wage increases of 5% to 10% are projected in several countries.

High wages will lead to inflation. This will be followed by higher interest rate. When this happen, global assets will fall in price quite quickly.

I now keep about 50% of my personal investments in the money market. It earns about 2.5% p.a now. I still have the remainder of my investments in stocks, funds and properties - but most were bought at low prices more than 5 or 10 years ago.