Global Financial Crisis Looming, Or speculation?

Me too. What's so hard??? I don't get it, I keep telling people how to do it but they ignore me and I am not that smart,
I have picked 6 booms cycles since I started investing in 2001-2016.
I call it investing on steroids....easiest way to make money. I even started a thread "easiest way to make $1M", and I made much more than this, anyone can do it.

 

I don't buy at bottom, not interested, as I prefer to chase rising markets as this will make me money, and the trick is chase many markets in Australia, don't just play in your own back yard, that's time you wont get back.

 

Hey I'm always listening... So don't stop.

 

I was posting on PC that Melb was a buy and flying under the radar??? however, most jumped into Brissie, problem is I am not a popular member... and I have a big chip on my shoulder.... LOL

 

When?

 

I thought it was a tattoo

 

Join the club

 

A number of posts on Melb, at least 12 months ago. Boom started similar time to Sydney, however there is generally 3 years in a boom cycle? can vary, you don't have to pick the starting point, as long as its in the earlier stages. The major growth is generally closer to the peak, but then it becomes higher risk if you want to bail prior to the bust.

Just do a search, I am too lazy

 

Oh do you like my tatts?? I am not a tatt lover, banned my girls getting any tatts

 

It's okay. I already committed to one in Victoria recently.

 

Ok, take a deep breath,
You will never be able to predict the TIMING of the future but there WILL be
1. another stock market crash
2. another banking scandal
3. another recession
4. another war (somewhere)
5. the OZ will remain the pacific peso for a while .. then it will go up again..

but you can't do anything about that, all you can do is risk mitigate.

most people are spooked about the macro economics but the micro economics are more important.
IE job loss, debilitating illness (the two go hand in hand). death of spouse, family emergency, (i.e. illness or disability. youngest kid develops diabetes etc), Divorce.

but you can't do much about that either all you can do is risk mitigate.

So line up your Ducks BEFORE you need them.

a) Cashflow
1. shoot the dogs be it stocks or dud investment properties.
2. change all investment loans to IO BEFORE you need too. Banks are famous for being fair weather friends.
3. set up offsets with spare cash for instant access and minimisation of non deductible debt. I can survive for a year with no cashflow without selling anything.
4. know the (changing) super rules, be familiar with the rules BEFORE you are forced to play the game (retire).
5. have equity? organise LOC and then never touch it. if you do need to access it in the future for emergencies the banks might not play nice anymore.
6. minimise financial waste.
7. set up alternate income streams. (stocks, hobbies whatever).

B) Insurance
8. income insurance
9. landlord, travel, health... anything that will bury you if it goes wrong, insure for it.
forget about insuring for trivial things (like extras in health etc, pay your own dental bills, not worth it)
10. relationships... check in with your spouse, divorce is a wealth killer
....Im serious, this is how most go broke.
11. invest in your own mental health, hobbies are the key here. would you lose your reason to live if you became redundant/retired?
12. invest in your health. middle age spread is optional not a must.

C) grasp investing cycles by the throat.

12. buy US when the dollar is high ( i did that... had a lot of fun reading the US stocks threads on Somersoft. I had finished buying a year before when the dollar was at parity.)
13. buy solid div stocks when they are low. Wait when they aren't.
14. find people who can read the cycles and follow them
15 work out what kind of investor you are... Im time poor and do not possess the superpower of detatchment. Emotions cloud my judgement so I am a low turnover get there slow kind of investor. LICs and solids divs are my deal. Townhouses in trendy areas are my IPs. I don't do mining towns or suburban shacks. I hate maintenance and am happy with moderate growth. I want it stable, others with more appetite are happy with risk...nope. This took a while to find my investment groove.
16. If investment (stocks or IPs) cyclicals give you palpitations then avoid them.

Im doing all the above right now.
selling an IP, stashing cash, took some share profits and reinvested in a more tax friendly environment.
all the best.