This is a crisis that no one alive has faced, certainly not at this scale, but we will get through it.

We’re in the midst of a Health War.

A unique war, with every country in the world united in an effort to beat the same enemy. globe-economy-growth-health-world-heart-decline-map

A silent, invisible, deadly enemy.

It’s encouraging that China has curtailed the virus with very few new cases.

This is a crisis that no one alive has faced, certainly not at this scale, but we will get through it.

These are the words of Andy Hart- from Maven Adviser in the UK.

He goes on to tell …

A Story of Two Frogs

Two frogs fell into a milk bowl that they were dancing on top of.

Both swim around but soon realise the edge of the bowl is too high for them to ever get out.

Frog One panics and thrashes about saying “we’ll never get out, we’ll never get out!” until the frog drowns.

Frog Two thinks “I must keep calm, there must be a solution.”

The frog slowly swims round and round thinking for hours, until the frog notices that the milk has turned into a pat of butter.

This allows the frog to jump out.

Crisis doesn’t create character, it reveals it

Hart goes on to explain that through this Health War people will suffer, be it losing a loved one, facing a business closure, a loss of earnings, and major disruption to their lives and jobs.

He suggests from a financial perspective  our order of concern should be:

  1. Personal liquidity. Will I have enough money to see me and my family through and will my business/job/career survive? What immediate actions do I need to take and take now?
  2. Invested capital. Your investments/pensions etc.
    These are invested in a historically appropriate portfolio designed with these events in mind, so if you have no reason to sell for personal liquidity reasons, the action to take is to ‘do nothing’.
    As counterintuitive as it sounds it is for most the correct cause of action.
  3. The wider economy, which usually reacts later than the stock market.
    It’s clear we’re effectively in a recession even though it’s not ‘official’ yet. Recessions are part of the business cycle, painful but nothing unexpected.

Your Faith In Our Future

Hart goes on to explain that at this critical juncture your decision is binary (one or the other).

  1. You believe we will see this health crisis off and humanity will get back to where we were, or
  2. You believe we will not get through this.

If your answer was dictated by the headlines you may think the latter, if it was dictated by history you would be all in on the former.

The two emotions that collide here are fear vs faith in the future.

Hart explains that personally, he’s not betting against humanity. It’s a powerful force.

The investment decisions you make in the near future will impact the rest of your life.

The stock market is there to test you. The current crisis may be the greatest test you’ve faced.

Remember, the stock market is a collection of the greatest businesses on the planet.

We regularly lose a few businesses but human ingenuity also means we gain new ones. Capitalism is a success story.

Looking at the prices of the stock market day by day will fill you with anxiety.

The less you look the better you’ll do, but more importantly the better you’ll feel. If you’re looking at your portfolio daily, you’re not a long term investor, you’re a short term trader.

After darkness there is always light

Studying previous global stock market crashes it’s a recurring theme that when the story and noise are at its peak, things are usually about to change.

Staying disciplined during a time like this can feel like you have your hand on a burning stove when all you want to do is pull it off.

Beware of the person who claims to know when this will end.

Property Vs Downturn

Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on

If you’re wondering what will happen to property in 2020–2021 you are not alone.

You can trust the team at Metropole to provide you with direction, guidance and results.This is a crisis that no one alive has faced, certainly not at this scale, but we will get through it.

In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.

If you’re looking at buying your next home or investment property here’s 4 ways we can help you:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now!  This will give you direction, results and more certainty. Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.

Get the team at Metropole on your side

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Michael Yardney

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media. Visit Metropole.com.au


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