25 Feb 2021
The World in 2030
- Posted by Dejan Pekic BCom DipFP CFP GAICD
The next decade is going to be incredibly exciting as software consumes the World.
The following research was prepared by Capital Group to give you a taste of what is coming and the opportunities for investment.
WARNING, this does not constitute Personal Advice and is general in nature. To discuss if this is appropriate for your given circumstances please do not hesitate to contact us directly.
19 Feb 2021
Global Debt: Cryptocurrency
- Posted by Dejan Pekic BCom DipFP CFP GAICD
If you needed more proof about the debt elephant in the room just have a look at how much money the US Federal Reserve has printed during this COVID-19 crisis versus the past 100 years.
Click for chart.
This printing of vast quantities of money (issuing I-owe-you paper called notes, bills, bonds) by Central banks around the World has helped drive the price for Bitcoin and associated cryptocurrencies but remember that Bitcoin price relies on The Greater Fool Theory.
The Greater Fool Theory is where a purchaser/investor buys an item/asset in the belief that the next purchaser/investor will buy it from them at a higher price.
That fact about Bitcoin is that only 21 million can be mined in total and so far 18.5 million have been collected which makes it rare and as long as there is a group who want to trade in this limited edition rarity, think of it as a collator’s item, there will be a price.
Once there is no longer a group that wants to trade in this collector’s item the price will evaporate.
Don’t know how this is going to end but we do know what Benjamin Graham taught and that was to not speculate. Instead remain invested according to your appetite for volatility and when fear and panic take hold, react by buying more quality assets at discounted prices.
16 Feb 2021
Global Debt: The big negative
- Posted by Dejan Pekic BCom DipFP CFP GAICD
There is much positive news for economic growth but the elephant in the room is debt.
The World is awash with debt.
It started to ramp up with the 2008 Global Financial Crisis and has reached an extreme level with the COVID-19 Pandemic.
The World Economic Forum lists prolonged excessive debt as a high likelihood economic risk with a high impact. By the end of 2020, they expect global debt to have reached US$277 trillion or 365% of world GDP.
Click for chart.
How does this get fixed? Don’t know.
What we do know is what Benjamin Graham taught and that was to not speculate. Instead remain invested according to your appetite for volatility and when fear and panic take hold, react by buying more quality assets at discounted prices.
12 Feb 2021
Economic Impact COVID-19: Air Travel
- Posted by Dejan Pekic BCom DipFP CFP GAICD
More good news and Gong Xi Fa Cai to all with a Chinese heritage.
As the COVID-19 vaccines roll out continues there is increasing confidence that passenger numbers in the United States and the rest of the World will begin to rise rapidly as has been the case for China.
Click for chart.
Increased travel has enormous positive impact on the tourism and hospitality sectors, retail sector, employment and happiness.
This is again positive news for economic growth.
Next week we will talk about the elephant in the room.
8 Feb 2021
Purchasing Manager Index (PMI)
- Posted by Dejan Pekic BCom DipFP CFP GAICD
The Purchasing Managers Index (PMI) is a measure of the prevailing direction of economic trends in manufacturing through its monthly survey of supply chain managers across 19 industries, covering both upstream and downstream activity.
When the PMI falls it indicates that manufacturers are scaling down production because they are expecting reduced sales which can indicate slower economic growth.
However the opposite is the case when it is rising and it certainly has risen back above 50 from the collapse in 2020 which means that World GDP is expected to rise in 2021.
This is positive news for economic growth.
Click for chart.
4 Feb 2021
Newealth 30th Anniversary
- Posted by Dejan Pekic BCom DipFP CFP GAICD
On this exact same day in 1991 (it was a Monday) I founded Newealth.
We started the business with no clients and zero funds under advice and today, from our Head Office in Pitt Street Sydney we help 153 client groups manage $242 million of investment capital.
Must say, the last 30 years has been a wild ride full of big booms and busts but throughout each of the three decades it has been an incredible joy and privilege to have been asked by our clients to help them accelerate their wealth.
We sincerely thank every one of our clients because without you there would be no business and we wish each and every one of you continued success in the decades ahead.
Thank you.
2 Feb 2021
11 Life Lessons
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Hard to think of a better way to start a day or begin a year other than by being taught some life lessons from one of the greatest minds in human history, Albert Einstein.
The attached piece talks to his thinking on the following-
- Simplicity
- Creativity
- Hard Work and Failure
- Live in the Present
- Be Unconventional
- Imagination
- Work Towards the Impossible
- Value People
- Sharing
- Be Open to Learning
- Do What is Right
Enjoy and may Albert Einstein’s wisdom both teach and inspire you to greater heights in 2021.
Click to read.
