Send in the clowns....and this is not the musical
Written on the 26 February 2016 by James Cagney"Send in the Clowns" is a song written by Stephen Sondheim for the 1973 musical "A Little Night Music" and this song is so akin to what is going on in Australian politics right now. ......here we go again.......the circus is back in Town - another election. Every election the same acts, same performers and same disappointments. We go home saying "it was same as last time. Nothing new and boring. What a waste of money."
The show must go on and the Ringmaster (the ruling political party) announces the opening of the show with all the fanfare they can muster, showing off their leading acts and performers (the cabinet) and the show begins. The clowns enter into the arena and the clown with big hair dressed in BLUE (LNP) with the big inflatable hammer runs after the clown with the "red nose" dressed in RED (Labour party) and ........smash........hits him on the head. Of course, the "Red nose" clown pretends to be hurt t(hey have being playing this game for years and he is a master of this game). But wait for it,,,,,,,, the "Red nosed: clown finds even a bigger inflatable hammer and he runs after the "big hair" clown and ......smash........ hits him on the head. The "Big hair" clown writhes in agony and the 'Red nose " clown does a victory lap. Wait....in comes the "Big Ears" clown dressed in GREEN (The Greens of course) and she has a bigger hammer and bashed both of them on the head......and does cartwheels at her success. We all laugh at the futile predictability antics shrug it off and get on with our busy lives!
Unfortunately the show runs ad nausea until the next election. This program (until the next election) has been the same for years. The 1st year the ruling party announces all the austerity measures because Australia is broke (which is true) . The 2nd year they retract those austerity measures because they are too harsh and are not popular because it hurts our pockets. And then, the 3rd year they "give away the farm" because if they don't - they will not be in power the next year. That way the circus gets to come back into town because the show must go on and unfortunately we sit through another dull performance. We shouldn't' be laughing - the act it is old, tired and the show is definitely not worth the money we have paid (the tax payer).
So in todays show, once again, Superannuation, negative gearing, immigration, income tax winners and losers, the "have's" and the "have not 's" are all in the show. We will just have to pay the ever increasing cost of tickets to attend the show this year and next year and forever.
The fact is Australia is over $1 trillion dollars in debt. We had the biggest balance of payment deficit in the history of our county the Oct - Dec 2015 quarter and the January to march 2016 is predicted to be worse. The top 200 Australian stocks lost $100 billion in January 2016. This loss will only be reflected in the Super statements in the coming months and only then do workers sit up and wonder what happened. The financial experts, who are great at 'talking up' consumer confidence for their own greedy agendas, say "We may be entering a bear market' worldwide and possibly in Australia" (as if we would be exempt). The fact is we are already in the bear market but the bear has been hibernating for the last 6 months because it is winter!.
The good news for property investors is that property values follow a cycle. Historically, when the share market is down the property market prices go up as investors look for safe investments - and brick and mortar is a safe investment. Please read through the latest Property Update because we all need to focus on what is going to make us money over the next few years. Besides property investing also fits in with our busy lives today because property is a "set and forget'. Buy it and find a property manager to look after it.
It is more about TIME in the market than timing the market. No late nights studying the local and overseas share markets so you may be able to make a quick buck. If you leave your share portfolio to your stock broker - remember most brokers make money when you buy and sell. Brokers commissions are not dependent your your profits and losses.
There are three types of people:
Don't wait to buy a property - buy a property and wait, while the value increases over time with the minimum of effort from your side. The wealthy banker John D. Rockefeller said "If you want to be wealthy........you must make money work for you. The amount you get paid for your personal effort is relatively small compared with the amount you can earn by having your money make money".
To return to the Property Update "My NO...B.S. predictions for the property market in 2016" click >>>> HERE.
Please note that the information herein is of a general nature only and is not intended as formal advice for any particular person or entity. The contents of this Property Update has been prepared without taking into account the objectives, financial situation or needs of any particular individual. Information herein includes material obtained from third parties considered to be reliable. Whilst this information has been diligently compiled, no warranty or promise as to its correctness is made or intended. Investors should undertake independent research to satisfy themselves that any details herein are true and correct. In addition, no predictions have been made about an individual's potential profit, loss, capital gains or rental returns.
You should not act solely on the basis of the material contained in this Property Update for your investment strategies. Changes in government policy and legislation occur frequently and without prior notice and financial markets are unpredictable.
Author: James Cagney