Where
are we in the investment cycle right now,
on the clock face that never stands still?
Investment markets change on a constant
basis. There is a perpetual ebb and flow
that affects the time to buy, sell, or
hold. Knowing that these cycles exist
is vital, but knowing when they will move
in your favour can be hard to call.
The key point is that these waves or cycles
are not random. They follow a pattern
that is logical and predictable over time,
and you can refer to the pattern for insight
into where we are in the cycle and when
to make your moves.
The Australian Financial Review has just
published a model of what they call the
‘Multi-asset investment clock’
to show where we are in the investment
cycle. It is a very useful model and we
have re-created it for your interest and
reference.
Reference:
Baker, P. Cash to shares: investment cycle
comes bull circle,
The Weekend Australian
Financial Review, 14-15/11/09
The clock shows that we have come out
of an economic slowdown and recession,
and we are well into recovery. This is
great news, as the journey on the way
south was challenging and uncomfortable
for us all, and recovery means that better
times are well and truly upon us.
Please note, though, how close we are
to the next boom in market conditions.
“So soon, and so unexpected!”
you might be saying. Yes, the key issue
is that the recovery is well underway,
and if you want to be part of the boom
conditions ahead, you need to get into
the market.
What is also significant is that the
“6 o’clock” label of
“Falling real estate” either
didn’t happen in many areas, or
was very brief. So the hands of the clock
skipped a few numbers at the bottom of
the cycle, and property is now growing
strongly off a solid base.
For those who own property, this is great
news. For those who don’t, there
is still time to invest before the anticipated
boom conditions really take off. Just
don’t leave it too long. The investment
clock waits for no one.
If you would like to learn more and discuss
how McCarthy Group can assist you, click
here.
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