Why will 2020 be better than 2019?
Written on the 26 January 2020 by James CagneyThank goodness we see the back of 2019. The lead up to the federal election was a near-death experience for business and the property market. The Labor Party's announcement that they would reduce the Capital Gains thresh hold and introduce Franking Tax resulted in investors and retirees running for cover. The uncertainty caused buyers to pull in their purse-strings and the growth in the GDP was minimal. The surprise win of the Scott Morrison and the LNP was a breath of fresh air to the economy.
Bill Shorten went into hiding and the Labor Party was left licking their wounds. During the second half of 2019 we experienced slow growth in confidence in the economy. The Reserve bank of Australia (RBA) reducing interest rates to 0.75% and the relaxation of the draconian rules of the Australian Prudential Regulation Authority (APRA) did help the economy along. Banks became more lenient in borrowing criteria as they chased growth to please their shareholders.The exposure of the major banks, insurance companies and Superannuation providers misdemeanors by the Royal Commission was not surprising. Although consumers suspected this was the case they were still disgusted at the extent of the misrepresentation by these organizations. The public were pleased that finally the LNP politicians were forced to expose their "School-tie Mates" that were in ridiculous high paying jobs within these organizations,. They had been protecting them for many years because they mostly voted LNP.
The results the LNP have achieved in 7 moths since the election has been very encouraging. The Labor Party have announced a reversal of their franking tax policy and will soon retract their capital gains policy. The socialistic policies adopted by Bill Shorten are hopefully a thing of the past. I believe Anthony Albanese is a smart politician and his policies will look like the liberal side of the LNP.Many of you will feel the information in this newsletter is old news, However, we need to reflex on the past before we can predict or understand the future. Thank goodness we have another two and a half years before the next election and two years before consumers and investors go into "Shut- down" before the next election, which will be more closely contended .This will give the LNP time to work through uncertain world economic pressure and tough times for many countries The outlook for property and business looks brighter with many of the economists and researchers predicting excellent growth in 2020.
I will cover my thoughts about the potential of capital cities and regional centres in subsequent news letters.I do encourage you to not fall for "Quick buck schemes" but to formulate a strategy to "Get rich slowly and securely" strategy. I have never been a gambler or risk-taker because I do not want to see my money disappear like sand through a bucket full of holes. Like most of my readers we have worked too hard and long to create wealth.
That is why I concentrate on property. Warren Buffet said " Diversification is a protection against ignorance. It makes little seance for those who know what they are doing." He is a successful investor and Multi, multi millionaire. Why do people think they know more than he does? I took his advice and I focus on both the property market and share market. I do not chase after every fad and scheme that comes across my path - no matter how much money they all tell me I can make.For more information about the above please contact James Cagney on +61 416 137 645 or click >>> HERE.
WATCH THIS SPACE FOR MORE IN PROPERTY OPPORTUNITIES IN 2020.
Author: James Cagney