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STEP 3: How to PLAN for the coming BUST in the B-B-B Cycle

Written on the 25 October 2016 by James Cagney

Part 3: How to PLAN for the BUST in the B-B-B Cycle

We are up to the third stage in the process of formulating a strategy for survival and being able to thrive in the coming BUST in the BOOM-BUBBLE-BUST Cycle.

1) Where are you NOW?:  Click >>> FIRST to access this step
2) Where do you want to GO?: Click >>> SECOND access this step 
3) How will you get THERE?: >>> Keep reading below
4) How much does it COST?:  In the following week's Update
5) Can we AFFORD it?:  In the following week's Update
3) How will we get THERE?

Helen Keller was a lady of immense strength and personal power. She encouraged millions of people through her life story of overcoming adversity and her courage in the face of seemingly insurmountable obstacles. She said that "Life is an adventure or nothing". I don't think that many of us want to leave a legacy behind of "Nothing"? Therefore we need to discover our own paths and adventures.

This does not just happen. We have to plan and we have to act. I am sure that Captain Cook did not climb on board the Enterprise and simply set sail to the distant beyond. Many months of planning took place before they left England's shores. In my last two articles I set out a formula to effectively set goals and a described a process to assist you to achieve them. If you did not read these two articles it is imperative you do so now. Otherwise reading this article is like eating the desert first and then going back for the starters and main courses. Click >>> PART1 and PART2 and come back to this article:

What I do know is that our plans often go by the wayside in the face of the harsh realities of life. I am reminded of the story in the book 'Alice in Wonderland' when the Cheshire Cat asked Alice "Where are you going Alice" and Alice replied "I don't quite know Mr. Cat" to which the Cheshire Cat relied "In that case Alice any road will take you there".  Many people are on the "Any Road" in life taking life as it comes and most of these people will end up broke. The American essayist, lecturer, and poet of the mid-19th century Ralph Waldo Emerson said "No one can cheat you out of your ultimate success but yourself". Therefore take the necessary steps - stop sabotaging yourself - start the effective goal setting program as outlined in this series. I have taken the best from the guru's out there and I know it works.

There will be setbacks and you will have to make adjustments to your plans from time to time.  Aeroplane's are more off target than on target. However the autopilot systems continually make adjustments to enable the plane to land on target (thank goodness). Life is no different.  In goal setting direction is more important than speed. I continuously have to a adjust plans and deadlines. I don't stress about it, or get depressed. That's life,  circumstances arise over which we have no control and we simply make adjustments to our plans to accommodate them.  It is not a plane wreck when you have set backs you just pick up the pieces and carry on.

What I do have is the picture of what I want in my pocket photo album which I look at every day. This motivates me to continue on my quest to achieve my dreams and goals. Master motivator Paul J. Meyer said: "Success is the progressive realization of predetermined, worthwhile personal goals".  If you want to find out more about, goals, affirmations and visualisation techniques click >>> SUCCESS.

I also use affirmations which help me. For example I say the following out loud a number of times until I get rid of those negative thoughts that will hold me back from achieving my dreams and goals:

  • "It is what it is".
  • "I cannot control my circumstances but I can choose how I react to these circumstances".
  • "The best is yet to come".
  • "Every day in every way I am getting better and better".

Say them out loud with emotion even if your family thinks that you've 'lost the plot'. Hearing them and feeling these positive statements will have a big impact on helping you to achieve your goals.

I also discipline myself to read motivational material every day which does help me cope with the challenges that every day brings.  The only people who do not have problems in this life are those in the grave.  The bigger the problem the bigger the person becomes.However most of us do not want to move out of our "Comfort Zone". It's too cosy sitting on the couch watching television. Neale Donald Walsch is an American author of the series 'Conversations with God' said "Life begins at the end of your comfort zone". 

Let's now cover how you are "Going to get THERE" to survive and thrive in the coming BUST. Firstly, I am not a licensed Financial Planner and I cannot give you advice with regard to investing in Superannuation or managed funds. I am not a stock broker and therefore not able to give you advice on what shares or commodities to buy. However, within the Australian investment Property Network (AIPN) we have professional and licensed professionals to assist you. If you want to know more about how we do this click >>> AIPN .

If you are interested in the above I highly recommend that you subscribe to one of the newsletters from Port Phillip Publishing. They have numerous publications so you can select one which best fits your investment strategy by searching www.portphillippublishing.com.au . We have no commercial arrangement with this company and receive no fees or commissions whatsoever for our recommendation.

What I have learned from the newsletters they publish is that there is a BUST coming to the stock markets around the globe which is predicted to be far worse than the Global Financial Crises (GFC).  The editors of these newsletters are very knowledgeable about these markets so it is advisable to heed their advice. Popular ex president of the USA John F. Kennedy said "The greater our knowledge increases, the greater our ignorance unfolds". Therefore it is OK to be ignorant but not OK to be stupid. Ignore the warning from these very experienced economic forecaster's at your own peril.

In this article I will focus on my specialty which is real estate within Australia. I also keep up-to-date with market place trends in the USA, the United Kingdom (UK), China and New Zealand (NZ) because our market is affected by what happens in these countries. There is a saying that "When the USA sneezes the rest of the world catches cold". However, this time it will be pneumonia. Historical data has shown that when the USA housing market takes a dive Australia's real estate market will follow suit around a year later. Check it out for yourself. Port Phillip Publishing have a publication called 'The Daily Reckoning", which covers real estate and this type of information is available for you to study.

One thing which is clear from the decrease in commodity prices from 2012 is that Australia is hugely affected by the infrastructure and the building industry in China.  The building industry in China is currently in a state of disarray. One month the report  the industry is in decline the next month the media reports the opposite. The Chinese government controls the media so do not believe what you hear in the newspapers. Prices of commodities are on the increase again but do not expect China to help out Australia in the medium term. 

I covered the coming BOOM in the next SUPERPOWER in one of my previous articles and this will certainly help the Australian economy in the future. To access this information: click >>> SUPER POWER.

An indisputable trend is the increasing national debt of the USA, UK, Europe and other first and third world countries which cannot continue. Once again, I covered this topic in a previous article so click >>> INVEST for more information about the coming global BUST.

There is no question that real estate in certain suburbs in Sydney, Canberra, Melbourne, Adelaide, Perth, Darwin and Brisbane are highly inflated.  I do study what the local research companies release and I listen to some commentators who I feel are reasonably unbiased about these markets.  You cannot trust what real estate agents, builders and developers say about an area. I have also seen press releases and promotional material stating facts which are so far from the truth it makes me cringe.  Lies upon lies by creative writers bending the truth to suit these companies who want to flog you their own properties.

The danger is that any idea or fact, no matter how absurd or untrue, is believed to be the truth if it is repeated often enough by someone who is regarded as an authority.  The management of many building and development companies approve the untruths they publish for financial gain and sales staff are brow-beaten into believing it if they want to keep their jobs.  I have experienced such phenomena myself and watched as sales people follow the herd and promote properties with information which is  not correct. We need to get smarter and do our own research.

What we also need to acknowledge is that real estate is a medium to long term investment and if you are looking for short term gain I suggest you look at other investments. Property markets follow cycles and I have written articles on this subject.  I have designed a model which has proven to be a useful tool for many property investors. To view this article and model: click >>> PROPCYCLES.

The national media tend to generalise about the state of the property market thus getting it wrong. The fact is that capital cities, the suburbs within these cities and sometimes streets within a suburb each have their own property cycle. Yes - it is that specific. If you would like more information about how the property cycle will affect your property /ties please call James Cagney:  0416 137 645 or click >>> HERE.

There is no profit without some degree of risk. I also know that if you sit on the railway track and do nothing eventually you will be run over by the next train. I do advise that you proceed with caution before making any large investments in the next few years.  Do your homework. Do not take the advice from the spruikers who only have their own self-interest at heart.  Ask for historical and current data before you buy real estate in any area.  Look for independent research rather than biased company propaganda. Glossy brochures may appeal to your emotions but we need to make decisions with our heads and not our hearts. Do not stop investing because of the storm clouds approaching just be more diligent and wise up.

James Cagney has numerous properties throughout Australia which meet the stringent research test and will in the medium to long term be good investments.  Ask James to provide the independent research necessary to make an informed decision.  Call 0416 137 645 or click >>> HERE to contact him.

There will be opportunities in the coming BUST in the BOOM-BUBBLE-BUST Cycle and it is entirely up to you whether you just survive or thrive in this period.  The problem with many people is that when they hear opportunity knocking at the door they complain about the noise. More millionaires were created during the great depression in 1930 to 1933 than at any other time in history. What was the difference between those who survived, went broke, got depressed, committed suicide, the self-pitying who lived a life of misery and those who rose above the challenges made their fortunes?  What I do know is that opportunities do not come to those who sit and wait for 'their ship to come in'. Opportunities come to all but to those who dare to take action when everyone is anxious, scared and nervous the rewards are enormous. I trust that you will take action and find out how you can thrive in the coming BUST.

If you would like more information on growth suburbs around Australia call James Cagney on 0416 137 645 or click >>> HERE.


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 Finance Pty Ltd.

Author: James Cagney
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