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Protect your assets in the Boom-Bubble-Bust cycles

Written on the 21 August 2016 by James Cagney

The economy, the share market and  the property market is more dependent on on demographic trends than the government's economic policy, migration policy, population growth rate, or what banks and property developers do or plan to do. Researchers and experts predict the supply and demand trends, which does affect prices but  it's largely demographics that determine economic trends.

We must not listen to Spruikers who have a vested interest in the product they are recommending to you. Lining their own pockets first and never building a long term relationship with buyers. It's the take the money and run mentality - rather than taking notice of the advice provided by experts in their field who have no vested interest in you buying their goods or services. I subscribe to numerous publications to glean these insights into investing for the future. I am an investor myself and I have had many successes and failures over the years. I do believe that the only real mistakes I have made are those where I did not learn anything new. Jim Rohan, author and master motivator said. " You can't change your destination overnight but you can change your direction overnight".

Democratic trends are fascinating and I will be releasing information on the profound affect each of the following generations has had over these trends during the next few weeks:

  • The Baby Boomers (born 1946 to 1964)
  • Generation X (born 1965 to 1979)
  • Generation Y (born 1980 to 1999)
  • The Millennium's (born 2000 to now)

Harry S. Dent, one of the USA leading economist today, says that there are two fundamental cycles that cause BOOM-BUBBLE-BUST scenarios:

  1. Demographic Cycles
  2. Technological Cycles

These in turn determine the SPENDING TRENDS of each of the Generations listed above. The Economic  Climate in any country is not solely reliant on the above but over the next few weeks I will give you some insight as to how the Demographic Cycles and the Technological Cycles have impacted Australia and how they will influence our economy over the next decade. James Cagney wrote an article entitled "Inflation the Friend of the Rich and the Foe of the Rest" which is a must read if you want to take opportunities available to take advantage of inflationary trends. Click >>> INFLATION MY FRIEND for this enlightening article. 

We have 25 million people in Australia and our neighbours like China have a billion and India is following closely behind. The boom we have had in the last decade in Australia has been due to the commodities boom mostly coming from the emerging Chinese economy. Our population is really a drop in the ocean in comparison to these emerging Asian nations. Therefore, in addition to Mr Dent's insights, I  will glean insights from other experts on the subject of BOOM-BUBBLE-BUST. People like Jim Rickard, Vern Gowdie, Bill Bonner and many others.

Of course most of these leading economists have their opinions on what to invest in and where the world economy is headed. So let's consider the options available for you to plan to protect your assets as you plan for retirement, if you are not fortunate enough to be the beneficiary of a large estate.  you have the options of Investing in the stock market; winning the lotto; putting extra money into your Super (which is mostly invested in stocks and shares) or by purchasing multiple properties.

The Stock Market:  Many people invest or 'dabble' in the stock market. If you want to be successful you will have to work at this for at least 8 to 14 hours a day. Even then the markets are volatile and susceptible to unpredictable fluctuations.  If you are a gambler by nature then this may be the solution for you. For those of us who are more cautious with our hard earned funds this is a solution fraught with dangers if you don't know what you are doing. John Maynard Keynes, (1883 - 1946) was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments stated "Markets can remain irrational longer than you can remain solvent."

Over the next few weeks I will give you insights into what the experts are predicting are the best stock, shares, commodities, currency etc. to buy and hold over BOOM-BUBBLE-BUST cycles.

Lotto:  Statistics show that you are more likely to be struck by lightening than winning the lotto.  A History of past Lotto winners has also revealed that most Lotto winners have lost all of the money within approximately 2 - 3 years and have ended up poorer than before their large win. This is largely because they splurge their winnings on houses and cars that they cannot afford to maintain in the long term, waste money on lavish holidays and often stop working. Had they continued their previous lifestyle, kept their jobs and invested their winnings in properties they would have been building for a secure retirement.

Adding to your Super Fund:  This option is available to all but note that most of the funds are heavily invested in the share market. Read the article I wrote entitled "Superannuation - The Titanic which they also said was unsinkable" before you rely totally on your Superannuation in your retirement.

Property: This is still the soundest financial option available for the long term considering the BOOM-BUBBLE-BUST that await us in the next decade. I am a property investor and I am prepared to give you advice based on my experience. Clarence Shepard Day, Jr. was an American author and cartoonist said "Information's pretty thin stuff, unless mixed with experience".

As you know you can invest in property through various structures and you need sound advice before venturing into these:

  • Personal name/s
  • Trusts
  • Companies
  • Self Managed Super Funds (SMSF)

Kahlil Gibran was a Lebanese-American artist, poet, and writer of the New York Pen League said " A little knowledge that acts is worth infinitely more than much knowledge that is idle". Contact James Cagney on 0416 137 645 to protect your assets for the future or click >>> PROTECT. . 

This is the first of the series that deals with how the demographic and technological trends influence the economies of countries around the globe. To find out how the Baby Boomers have affected the economy of Australia and how they will radically impact the lifestyle's of Generation X, generation Y and the Millennium's' click >>> BBs.

Do not keep this important information to yourself.  Please share it with family, friends and colleagues. The insight this information will give them invaluable facts both now and into the future. Please take the time to forward this Finance and Property Update to them and I assure you they will be grateful.  

This is not financial advice. You should not act solely on the basis of the material contained in this Property Update for your investment strategies. Changes in government and legislation occur frequently and without prior notice and financial markets are unpredictable. Please note that the information herein is of a general nature only and is not intended as specific advice for any particular person or entity.

This information was written and compiled by James Cagney.  The opinions expressed herein do not necessarily represent the views and opinions of his associates including Asset Financial Services Pty Ltd and their allied companies and associates. .



Author: James Cagney
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