Was your risk management sufficient coming into Covid-19 Crisis?

How much of peoples views of how bad the crisis is, is coloured by their immediate, personal circumstances?

 

If you are losing business, lost your job, had your portfolio hit, tenants arent paying and have no cash, its easy to just see the negative applying to everything.

But your own situation, even of those around you, arent relevant unless they apply to a lot of people.

If you keep your job, have cash etc, then a crash is a good thing for you personally.

 

No, a crash is not good for the vast majority of the people.

 

I remember an economics professor at uni, a fair while ago, talking about the great depression
if you had a good job you were relatively better off, asset values declining, etc
purchasing power increasing
winners and losers

 

and back to the topic
with the immediate Covid panic, I did not think our risk management was sufficient

but as things have settled down, we are not doing too badly, tenants still paying, going ahead with a couple of builds

accepting that prices may decline say 20% and take 5 years to get back, but interest rates are so low, so who knows?

immigration and population growth forecasts are something to watch, but I think a lot of people still want to live in Australia (again everything is relative)

 

A crash is good for some if you aren't affected, and can take advantage of it. If you have bucketloads of money, you can buy assets cheaply.
The uncertainly isn't a good thing though, and we won't know how bad this will be until it's over.

 

Shares are anonymous.
The other thing is, if a person is desperate, if you buy from them you might save them from even worse pain. I don't like taking advantage of anybody either btw. If I've seen something on Gumtree way too cheap I might message them saying it's too cheap, or if I think it's worth more than what they ask I might just pay them what I think is fair, could be double what they are asking.

 

Immigration is the last thing, we as a country, should be considering. With what has gone on worldwide, a rigorous evaluation is required to the cause and effect of such policy!
Along with Australia being partially isolated from the rest of the world due to being an island, it is pretty evident that those with hemmed in populations haven't fared too well.
Having more people to deal with in catastrophic situations is certainly not ideal.

 

Other than being stuck working interstate for a couple of months I'm otherwise unaffected. I've actually had a short term pay rise however with potentially 1.5 million unemployed and 5m on job keeper this will affect everyone. We just don't know it yet.

 

Especially us old pensioners.