Theres no time to waste – and no time like now !!
The media continues with stories of doom and gloom. You’d have to be on Mars not to know that we’re experiencing some of the most volatile markets in history. Let’s not kid ourselves…this is not fun!
The essence of chess is time … a point Bobby Fischer always used to be fond of emphasizing. Give an inferior position an extra tempo and it may suddenly become tenable. Now what seems like the worst time to get into any market with long term capacity for growth can, in reality, be the best time. Successful wealth makers today realise that they can use time to their advantage.
In fact, a weak market is a wealth creator’s paradise, because a weak market is a buyer’s market, and one of the first steps to any wealth creation project is securing the right level of diversification on the best possible terms. History shows markets go up, they go down and then they go up again. When one market is weak, another is performing stronger.
When liquidity starts to free up, money will begin to flow through to markets shunned by investors in our current period of heightened fear.
As recently as 3 months ago, investors could achieve close to 8% return on cash. This meant decisions to hold cash or term deposits rather than long term growth assets seemed easy. With interest rate movements downward, income returns from cash are now nearly 40% less and still falling.
The ‘flight to safety’ has distorted asset prices and made government guaranteed assets very expensive, while other income and growth assets are now relatively cheap. A very low ‘risk free’ rate also makes valuations for shares and other growth assets appear much more attractive. The current dividend yield for the Australian share market of nearly 7 % is now higher than the yield investors can achieve from Term Deposits, even before allowing for the benefits of franking credits.
Over the past year, share markets around the world have fallen around 40% on average, and experienced extraordinary levels of volatility along the way. While this has tested the resolve of even the most experienced investors, those who shun the markets at these levels, risk missing the opportunity to buy growth assets cheaply and the rebound as the markets recover.
Our belief is that this is a golden time to act – perhaps a once in a generation opportunity.
Maybe it is not the time to sell existing growth assets held, but it is certainly a great opportunity to secure new ones. Now this acquisition strategy is not for everyone – you must have the necessary resources, funds and wherewithal to buy and also the appetite to hold firm during any further volatility that may occur.
The best approach for anyone contemplating further wealth creation through investment in growth assets will depend on his or her own personal and financial circumstances, but the key message here is that you must do something! There are many strategies that wealth creators can access if they don’t have vast sums of money or other resources available to them.
Successful wealth creators know that times of opportunity like this only come along once in a while, and they’re taking action so they don’t miss the boat. Regardless of your immediate financial situation, this is the perfect time to reconsider your own capacity to leverage your habits and resources into current or future income.
If you have any doubts about your ability to do this, or you would like advice and assistance to guide you through the many options, act now to get the knowledge and mentoring that you need.
There is no time to waste – and there’s no time like now !
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