In simple terms, it appears to be the stock market.
The Australian and World economy are still growing, business investment is on the rise and company profits remain robust. These are the bedrock fundamentals of a solid stock market. With the stock market also offering a very high dividend yield, many which are fully franked, making the attractiveness of the ASX all the more compelling. Ongoing low interest rates will help to ensure company profits remain strong, but will also mean the yield on term deposits and other interest earning investments will remain dull and unlikely to attract fresh funds.
There are clearly risks investing in stocks. Prices can fall (like housing) if economic conditions change or policy mistakes are made.
As 2018 kicks off, those risks appear most obvious from a potential US inspired correction after its stellar run in recent years. With the US Federal Reserve hiking interest rates, Trump as President, mid term elections and the slow unwind of quantitative easing, the US stock market is vulnerable. Add to that concerns about the Chinese economy and its management of debt and it is possible that stocks could be subjected to a so-called X-Factor hit. For now, the stock market is aware of those risks and is continuing to perform solidly.
In Australia, there seems little doubt that house prices will continue to falling away and as an investment asset, housing will for a time lose its appeal. While ever this is the case, investors will look to put their money elsewhere and it looks like stocks could be asset class that attracts those flows.