High government, corporate and personal debt means this is a time to be cautious.
Just a little unsolicited, and plainly obvious, advice. Be a little careful. If you want a higher authority, and you should, note the recent comment of Christine Lagarde, managing director of the International Monetary Fund: “When there are too many clouds, it takes one lightning to start the storm.”
And right now Lagarde cites four major storm clouds: Brexit; the China-US trade war; tight liquidity; and a sharper than expected slowdown in China’s economy.
Lagarde is not short of a colourful phrase to sum up the world economy. In the brilliant documentary Inside Job, which forensically unpicked the 2008 financial crisis, she said to the then US Treasury Secretary Hank Paulson: “We are watching this tsunami coming. And you are just proposing that we ask which swimming costume we are going to put on.”
So her warning now about economic conditions (over which you, our banks and even, to a certain extent, our government and Reserve Bank have little or no control) should be a sobering reminder to not view falls in sharemarkets and property markets as immediate signals to go bargain hunting.
This story is from the March 2019 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 2019 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Is the public market shrinking?
Australia needs a healthy stock market to give companies access to funds and to allow retail investors to build wealth.
India: three steps to transformation
Massive investment and extensive reforms turbocharge the economy.
The ballet of business
Changing direction, products, models and marketing is a hard task for a business. We chart what it takes to turn a business around, plus profile four successful pivots.
Save money and the planet
Could the high cost of living give us the incentive we need to reduce how much water and energy we use or waste? These eco-friendly household tips will help you do just that.
AI adoption is the new black
Artificial intelligence is set to reshape the commercial world, and small enterprises can’t afford to miss the boat.
Spam attack! Murky laws jam our inboxes
Unwanted marketing material is one of the pain points of modern life.
From rags to riches in style
Rich Tran sported a bowl cut until he was 14 years old and had no intention of becoming a hairdresser.
New work deals are killing the 'old' office
The Covid pandemic and the subsequent lockdowns accelerated the trend to more people working from home. It was a mixed experience.
Points taken: the truth about rewards
Can hopping between credit cards really boost your frequent flyer haul and give you cheap or free travel - or is it doing more harm than good behind the scenes? Money puts it to the test.
Shortcuts to own a home
Innovative ideas with a focus on low costs and sustainability could help solve the housing crunch.