Are You Ready?
Implications for Everyone.
H&G’s Head Boy
1, 2, 3 lets all panic!!!
Let’s try not to panic, let’s all take some affirmative action instead.
“My best tips for 2019 / 20.
Firstly, on Financial Ignorance.
Start thinking for yourself.
Do it now.
Stop relying on some moron in The City, who has no clue whether markets are going to up, down, sideways or in circles to protect your wealth.
Ignorance is not the result of choosing to think about what benefits you to think.
Ignorance is the result of fully believing, in your thoughts.
Thoughts which are most often, distortions of the truth.
As we all know, thoughts are not facts”!
Look at the Data, folks. The numbers do not lie.
Your Broker may and on occasion, does!!
So, what’s new?
The US stock markets are getting crushed in 2019 as the Fed goes forward with their multiple rate Push / Pull path.
China is in a tailspin, it’s already in a recession and a trade war with the USA is not helping.
We have issues with North Korea, and not just the hairstyle.
Oil is heading towards all-time lows.
Russia is binning the Dollar.
The Pound is a Maggie Thatcher style joke.
Equities are crashing.
Deutcher Bank is sort of going bust. Maybe?
The Bond Yield is an un-callable / sideways/ flat mess.
None of you are super savers, what’s the point. The interest rate is actually 0’ish. Try not to listen to your local Bank Manager. The Bank is not the best place to keep your money right now.
We’ve also been preparing for downturns all year with posts such as;
“Are We In Another Financial Bubble,” The answer is, yes by the way.
Some of the talking heads on the Financial News TV Programmes are talking about creating a more defensive portfolio with long termBonds. Total Insanity.
If you are a pensioner earning Jack on your savings. What’s the point of investing in a 30-year Bond at 65 years old??
Donald Trump is simply being “The Donald”. You wouldn’t want him in your Quiz Team folks!!
Group-think. This is for that starry-eyed person who thought the grass was greener, in the Asian Market.
What like Japan??
Dedaaaaaah, we called Japan tanking last year.
If you bet on japan, you are in the shit right now.
Most people might feel like jumping out the window because they cannot understand what to do for later life security.
IMPLICATIONS FOR EMPLOYEES.
You’ve got to face the reality that your lottery ticket is unlikely to make you rich.
Since you aren’t going to be rich, then you might as well enjoy the journey! Try not to worry about things which you cannot control. Enjoy your family, do your bit.
It is imperative that you ASK the Company founders what is the latest condition of the company’s financials are e.g. What is the burn rate, how long will the company last if revenue stays flat or goes down, is there any chance of us going bust, etc.
You may need to look for the exit door early guys, in order to find employment elsewhere in a more stable environment.
Your mission is to look after you and your family, right now.
Before things go bang. Try and get as liquid as possible, and if you invest in small ticket investments, invest in tangible, safe, none stock market linked Investments if you are able to do so.
LIKE LAND & LAND DEVELOPMENT.
Trust me, I’ve spoken to many clients, and all of them want to desperately cash out a large part of their stock market holdings before Deutsche Bank goes bust. Boris & Brexit cripples the Pound. City Group melts down. The Fed messes everything up over the pond. “The Donald” gets himself into even more trouble than he is already in.
Pensioners? Someone in Westminster needs to apologies to every one of you.
You’re already accepting 0%interest on your savings.
Don’t get bullied into not turning some of your cash into profit. Remove it from the Bank, and look to find a safe haven for it which actually gives you a return.
You can always say that you at least tried to take action when it all goes “Pete Tong”!!!
IMPLICATIONS FOR ENTREPRENEURS.
Rest, take a break and watch the impending meltdown from a distance. There will be opportunities, there are always opportunities for us when there is blood on the streets.
Look for tangible safe investments in the UK, if you are UK based.
Once you go down the route of tangible, local, safe investments, you will never go back to the shallow, stinking sewers of the Major Cities, Stock Markets.
You’ll now have the luxury of time, and the ability to take inspired action, NOT REACTION. Dodgy markets imploding in front of your eyes should not cripple you. Land does not blink out overnight.
Do you know how hard it is to hold on to your money when you have handed control over to a clown in the City? It’s virtually impossible. Seriously, who the hell wants to work with a person, who had 2 bottles of wine at Balls Brothers EC3A at lunchtime??
It’s a magic show, with lots of sleight of hand, and after getting their rubbish stock calls totally wrong, they will waltz off into the sunset with a 1million pound bonus.
At your expense.
IMPLICATIONS FOR EVERY DAY EMPLOYEES.
This life sucks if you don’t at least like what you do.
Your private pensions could evaporate, depending on the City collapse.
The only way out of this situation is to start building multiple income streams through side hustles. If you start developing different income streams now, in 10 years, these streams may provide enough firepower for you to break free and do what you really want to do, play golf, go on holiday, provide for the kids, and bin work.
But remember this, try to retire by a nice, certain age, not after your burnt out. Your life expectancy is pretty certain at around 80 years old. On the other hand, there’s always one more pound you can make.
IMPLICATIONS FOR PROPERTY INVESTORS.
Real Estate / Landis king right now.
Its, safe, end of an argument.
If the stock market stays flat, blinks out, goes bang, so be it.
Real estate will always hold its own unless we all stop making love. Which is unlikely, so all things being equal, traditional nuclear families will need somewhere to house their offspring/kids.
None traditional families will need somewhere to house their diverse family unit / park their sports cars and demonstrate their huge combined wealth.
For the Bachelor’s like me, We all need a party pad.
When the Stocks are tumbling, Gold / Land / Property is generally rallying. Capital Returns slide lower, Yields form Rentals skyrocket.
There might be a short-term knee jerk reaction where investors transfer capital from the stock market to the real estate market as we saw post-2000’s, very nice.
That said, in the long run, real estate appreciation is tied to corporate and individual earnings power, but will not be massively affected by the meltdown.
I strongly suggest that those with several none primary residences de-leverage through principle pay down, increase savings, or sell a property to ensure that you have a little liquidity.
Cash Money talks. Bullshit walks during a recession.
IMPLICATIONS FOR FINANCIAL FREEDOM FIGHTERS.
Many of us regulars are financial freedom fighters. We want to achieve financial freedom sooner, rather than later. As a result, we’re often trying to find the quickest way to make enough money so we never have to work again.
Trying to accumulate wealth quickly almost always results in the need to take more risk. There are those people who literally have over 90% of their net worth in the stock market. Not good. Remove it.
Meanwhile, others have leveraged to the gills and bought multiple properties in currently hot locations.
If you don’t have the liquidity to hold on during downturns, you will be crushed. Fact.
You’ll be forced to sell your positions during the worst times, and when things finally recover, you’ll start hating everybody around you.
I don’t have a problem if you want to take concentrated positions on things you really believe in. Just know that in every transaction, there is a buyer and a seller. A winner and a loser.
Both buyer and seller believe they got a good deal. Depending on your time horizon, one of you is going to be wrong, sometimes very wrong indeed.
During a bull market, everybody makes fun of people with boring old cash. But cash can definitely be considered an investment. Only an ignorant idiot or someone trying to sell you a product would ever advise against having a certain amount of cash in your net worth.
Focus on cash on hand and cash flow.
IMPLICATIONS FOR RETIREES.
Enjoy life to the max, make sure your estate is properly planned. Hedge your bets.
Leave as little money in the Banks as you are able too.
Diversify into Rental Property with a Good Yield.
Write a Trust, not a Will.
Drink lots of quality wine.
Take as many holidays as you can.
Ignore the markets.
EVERYTHING WILL BE OK.
One more time. NO!!!
Not by going with the flow it will not.
The data does not lie folks.
We are heading for a huge market correction.
It is not going to end well.
So, for younger folks, or folks who don’t have a lot of money.
Sorry, the Executive / Government lied to you, your future is not looking rosy.
You’re up to your necks in student debt.
For older folks, you’ve gone through enough cycles that your net worth is hopefully properly diversified to weather the reoccurring tsunamis, and even if you were too stubborn not to diversify, at least you should have developed new income streams to keep the boat afloat by now.
If you have not. Then you can only blame yourselves. The worst case is that we’ll all have to go back to working minimum wage jobs, flipping burgers or working in B&Q until we are 80.
B&Q? Not the worst thing you could do, we like the place.
I recommend contacting H&G.
We have a stunning opportunity with 12 % ROI in our new Lincolnshire Property Development.
City Broker Proof.
“Those who come up with a financial plan build much greater wealth over the longer term than those who don’t. The market is going to crash. As sure as Eggs is Eggs, my dears”.