[Podcast] What will our economy look like after the Coronavirus led recession – with Pete Wargent

With so much uncertainty around us, we’re even more keen to get a level of certainty. 

But let’s be honest, we’re pretty terrible at working out what’s going to happen in the future.

When the future doesn’t cooperate, we spend even more time trying to change the next bit of the future so it winds up more like what we were hoping for. 

But no matter what you do and how stressed you get; the future is going to take care of itself. 

Having said that, I am going to spend a little time trying to predict the future with Pete Wargent today. 

But I want to go beyond the recession we’re going to have and take a look at what life might be like after the recession. 

Clearly the past couple of months have been a period of immense uncertainty.

And despite the actions of governments and banks, 2020 is now expected to see a sharp decline in GDP. 

The world is going to go into recession. Australia is going to go into recession. 

But at some point, we’re going to cross that bridge, the virus will be under control, and things will go back to normal. 

But what will normal look like? Will it be the same, or will it be different? 

That’s what Pete Wargent and I will discuss today. 

Some of the topics we discuss:

• We might be able to start easing restrictions sooner than we’d feared.
• Any way you look at it, we can expect low-interest rates for a long time to come. 
  • The low rates won’t apply to every product, but new borrowers will see the lowest mortgage rates they’ve ever seen. 
• Governments all over the world are piling on new debt. 
• Australia is now borrowing at the lowest rates in history and we’re relatively well-placed.
  • Once we cross the bridge, the government will have to do other things to get the economy moving again. The government will need to create jobs, infrastructure projects, healthcare projects.
• Some people will probably need to stay in the workforce for longer. 
• The government is hoping this will be a business-led recovery, and that the budget will be balanced just by getting the economy moving again. 
• The media has changed. People are turning to different sources. There are fewer hard-copy publications and more internet sources.
• Retail is going to be different. We were moving to online retail anyway, but this will speed up the transition.
• Tourism is changing. There are going to be fewer departures, more staycations, and holidays at home. 
• Resources and commodities may go through a boom. 
• People are going to be working from home more. This may lead to a change in the type of properties they want to live in. 
  • People will want more spacious properties with room to work. 

Links and Resources: 

Michael Yardney

Pete Wargent  Next Level Wealth 

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Pete Wargent’s new book Low Rates High Returns

Some of our favourite quotes from the show:

“There are always opportunities that occur during a downturn.” – Michael Yardney

“I think we’ve also changed who we trust when it comes to looking for relevant, for factual information. We’re going to different sources.” – Michael Yardney

“The trend of living in big cities is going to continue, but maybe the sort of properties we’re going to live in will be a bit different.” – Michael Yardney

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