Our 11th annual Excellent Thursday charity lunch is just around the corner (on April 17th) and our selected charity this year is Sacred Heart Mission. Our current focus in the Rees community is raising money for those in need – lately, however, it’s been a bit hard to focus.
It’s hard to focus because there is just so much noise…
-
- American tariffs of 10% on Australian goods, as of this writing.
-
- Global tariffs affecting our major trading partners in Asia.
-
- Dumb and Dumber polling for control of the country at the May election.
-
- Prediction of RBA cash rates starting with a 2 by the end of 2025.
-
- Cyber hacks across our major superfunds (They still won’t listen to the threat and be proactive with our money).
-
- ASX down 14% from Valentine’s Day high (at the time of writing this), so what happens next week?
-
- Investment advisers telling you to hold the line and follow the strategy you have in place for your super and your portfolio.
-
- A blind Victorian government that doesn’t seem to care about the $50,000 per capita debt we have for every resident of Victoria.
What does this mean for us, our businesses, and our families?
Well, my 17-year-old daughter Winnie messaged me this morning and said, “apparently it’s a good time this week to buy shares?” So, if the 17-year-olds are ‘snapping voice memos’ (yes – they don’t text anymore, that’s very 2000s) about investments, then YOUR super and investments should be at the forefront of your mind.
Disclaimer: I’m not an investment adviser and this is not investment advice, but I do think you need to look at your strategy of investment across your portfolios.
I went to a peer led investment forum in the CBD last week, and there were some very smart people in the room. One overly impressive fund manager had a great takeaway message: “you need to look where others aren’t presently.” He meant that American tech stocks are old news, and that Asia and Central America may prove to be an opportunity for us.
So, I’d like you to ask yourself the following, and answer honestly:
-
- Is the same old same old herd mentality the right strategy for you? Work with your investment adviser to challenge the norm.
-
- Have you looked at diversifying/stabilising a part of your investments into gold and digital gold?
-
- Are you holding low performing property that should be sold due to high holding cost and taxes, such that you can redeploy that capital in reducing debt or other diversified investments?
-
- Where are the new client and market opportunities for your business in this current state of flux?
-
- How can you keep your costs rationalised? Where are you overspending?
-
- If you’re an importer or exporter, have you locked in forward currency? No one knows what the AUD will do, however I feel it may remain soft for some time.
-
- Are you preserving cash in your business?
-
- Where are your employees inefficient in your business?
-
- Are you spending on technology and improving efficiency in your business?
-
- Have you managed your tax and tax debts so that you’re not on the ATO’s radar?
All thought-provoking questions, as my daughter’s text has me thinking.
To conclude – a good friend of mine who is a retired hedge fund manager uses this analogy: “when there is blood in the water, that’s when you make money”. I can see the sharks circling.
– Justin
Disclaimer: The information in this article is of a general nature. It does not take your specific needs or circumstances into consideration. You should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.
