|
Good Morning Reader,
With more and more positive signs that the worst of the global financial crisis (GFC) is behind us, professional investors are now turning to the question,
"Where will sustainable investment growth be driven from after the globally-coordinated government financial stimulus programs have run their course."
Governments, predominanty western governments, will be burdened with the new challenge of how to pay for the massive fiscal debts they have amassed and the very real concern that inflation will rear its ugly head once again - higher taxes and higher interest rates are the likely outcome.
Meanwhile the strong government surpluses and corporate balance sheets of China, Japan, South Korea, Taiwan, and Singapore will see the Asian region increase its economic influence throught the globe.
Those that think the GFC was an isolated 'blip' that will not change the way the world invests and allocates its capital in the future are in for a serious shock. It is our job at Eden to ensure our clients think, act, and invest appropriately.
In the words of Warren Buffett, "The 19th century belonged to England, the 20th century belonged to the U.S., and the 21st century belongs to China. Invest accordingly."
Mark La Bozzetta - Eden Wealth Management
Legendary investor and head of the largest bond fund in the world, Bill Gross, argues that investors will have to adjust to a "new normal" for the economy and investment markets.
Bill believes "children of the bull market" are in for quite a shock and will need to adapt their investment approach.
We consider his views on the "new normal" and its impact on our investing future.
In the second of this three-part series, we discuss investor 'blind-spots' number 3 and 4, and how "if unchecked" they will jeopardise your long-term investment success.
Mr or Mrs Investor, it's time for your check-up ...
|