Newsletter Articles

Is the glass half full or half empty?

With the bombardment of negativity from this Global Credit Slump it’s easy to get caught up in it all. For me, it’s business as usual and opportunities aplenty. I subscribe to the belief that positive things happen to positive people, and vice versa. The media is doing a grand job at painting the picture of doom-and-gloom but I maintain that there is plenty of reason to be upbeat and positive.

For those of you who need some convincing here are just a few things to remain positive about. Interest rates have dropped have plummeted over the last 2 months with forecasters of more cuts in excess of another 1% over the next 3-6 months. Australian banks are amongst the strongest in the world (and, “YES”, they are still lending money). Unemployment is low. Stamp duties on properties have been slashed. The first home owner grant has increased to $14k-$21k. The government is planning an attractive paid maternity leave package and more tax cuts. This all sounds like pretty good stuff to me!

There are plenty of business and investment opportunities out there for those prepared to be positive and have a go. I speak to people from all walks of life all day and it is no coincidence to me that the people who are still positive and looking for new opportunities are the ones who are traditionally successful; that’s a positive mindset. Remember, the media sell their product by creating drama and if you allow yourself to get too absorbed in it you risk becoming a ‘whinger’ or a ‘worrier’. My motto, just get on with it!

Warren Buffett, the world’s richest man, wrote an article which featured in Australian Financial Review on 20 October 2008 wherein he advised that now is the time to invest. Buffett maintained that economics is cyclical and that history proves that when asset classes such as shares, property, etc dip in value they always rebound with gusto to set new record highs. He further added that the best time to invest is when everyone is too scared to do anything and now is one such rare opportunity to pounce. “Be fearful when others are greedy, be greedy when others are fearful”.

Who are we to argue with the richest man in the world?

Click here to read Warren Buffett’s article.

SIMON PRESSLEY