The fundamentals are always awful

economy unemployment Jun 10, 2020

Australia leads rebound

The OECD reported in its latest update that Australia may effectively be leading the developed world out of recession, although there will be a heavy dependence on the government continuing to spend and support the economy beyond the next few months.

With the domestic spread of COVID-19 broadly contained and a stronger push to reopen state borders, it’s possible that Australia’s unemployment rate may peak in the 7 to 8 per cent range, rather than scaling the alarming double-digit levels previously feared.

Output could drop by about -5 per cent in 2020, before rebounding by around +4 per cent in 2021.

Animal spirits

Despite this upbeat assessment, overall it seems unlikely that the economy will experience a smooth V-shaped recovery.

Downturns and recessions tend to leave lasting scars, while the Royal Commission and a more cautious environment may shrink the ‘bezzle’, that illusory increment to wealth experienced during the good times.

It’s evident from any walk around town how many businesses have been permanently shuttered during the effective lockdown, and the economy will likely take some years to heal in full.

For all of that having been said, the fundamentals are always apparently awful, and this doesn’t mean it’s a bad time to begin building wealth for your future by formulating a plan to invest or by building a business.

I discussed these ideas a little further in the short video here 

Whenever you’re ready… here are 4 ways we can help you manage your own money and go next level wealth:

  1. Boom or Bust in 2021 – 20 minute online workshop for investors

Register for my next free online training - Boom or Bust? How to change your investment plan for 2021 - book in here

  1. Subscribe to our Top 100 Podcast for Investors

 Listen in to our new podcast - The Low Rates High Returns Show - Apple Spotify , SoundCloud

  1. Join our Implementation Program

We’re putting together a new coaching case study group this month for private investors. If you’d like to get the plan, tools and timeless principles for managing your money and creating next level wealth … just send an email to [email protected] with the word “Case Study” and we'll get you more details.

  1. Work with me privately

If you’d like to work directly with me and Stephen Moriarty directly to help you map out and action your next level wealth plan… just send an email to [email protected] with the word “private”… tell me a little about your situation and what you’d like help with, and we’ll get you all the details!