Political/policy changes that affected your finances?

We've just finally sold a house in UK and planned to pay off some high yielding properties to live on the income prior to getting our super. Brexit and the impact on the pound may well crush these plans. Not long ago we went through a similar thing with the Scottish referendum to leave the UK.

It just goes to show that no matter how well you think you've planned unforeseen political events can have a huge impact on your investing and overall financial position. We'll have to see what happens with Brexit, and either way I'm sure we'll be fine. Reminds me though about the importance of not being too financially exposed. You think you've covered all scenarios and a curve ball comes along.

 

@ellejay, your post reminded me of my project management days.

With projects, we always had to consider Sovereign Risk (anything a government could do that might derail a project).

It was one thing to consider Sovereign Risk. It was a totally different matter correctly identifying all the possible and probable risk factors.

 

Julia Gillard calling an election at the start of the year and the entire country's businesses grinding to a halt. If I recall rents dropped that year and values were stagnant.

 

We are seeing this right now in our Industry - everyone is quiet and no-one is spending..."Election Time" is what the Reps are telling me.

I have observed it myself over the years; the Reps simply confirm it.

I find it strange how folks think with regard to an Election versus spending- it's the sheep mentality; why?

 

You can understand some people in different elections stop spending. eg - if there's an expectation of the new govt cutting public servants then they will shut their wallets.

Mostly I think it's a self-fulfilling prophecy. You expect it to be quite so you run down your stock. Rep doesn't get a bonus. Rep doesn't get car serviced. You were right people stopped spending.

 

Well, no; I can't understand it, because for the vast majority of people working, an Election makes absolutely no difference whatsoever to their week-to-week life.

Nothing in their life is going to change before the Election, and/or the immediate 6 months after it..or even longer - look at TA's period - nothing really changed for anyone (except a lot of folks in leaky boats).

Public Servants are just one section of the work force; so yeah; they may pull the purse string tight if there is a hint of "govt expenditure cuts" (good luck with that) and possible Public Service Sector redundancies... I haven't heard either Mal or Billy Bob throw that one out there...both are talking more spending.

I am talking about the society as a whole on this mindset of not spending when an Election is on..

No-one mentioned anything about running down stock etc either, Ed.

But since you have; folks running down stock is a response to a known quiet period; same as folks increasing stock is a response to a known busy period.

Having less stock is not the cause of the quiet period.

For example; my previous life in golf was very much weather-affected. Therefore; every year in about March - I stopped buying stock because the weather in winter and lack of day-light dramatically affected the number of players, and therefore overall sales...my lack of stock was not the cause of the lack of players.

I did buy stock; but lots less volume, and only stock more pertinent to wet weather such as water-proof apparel, umbrellas, more models of black and brown golf shoes etc.

This is merely an overview comment by Reps - and in particular one Rep - who has been in the industry for a few decades and has witnessed the patterns with each Election (as have I - I am older don't forget).

I have merely added our one industry's aspect to it.

There was a comment made in Post No 3: "the entire Country's Businesses grinding to a halt".

This comment is not targeted at just one or two industries - it reflects a collective mindset - a "chicken-little" mindset to be sure.

 

Yes, and I agree with Bayview about the election having no bearing at all on your typical person. But as always fear and emotion runs the economy, not logic or fact. I think I will start a thread about all the dumb and irrational statements flying around when an election is called.