Financial Security Practitioners

Articles and Company News

We aim to keep our clients up-to-date with news and relevant opinions which concern your finances. Our regular email bulletin is designed to inform and share views with our members.

The Next Virus

By Wellinvest

Beware of the Next Virus... It’s Coming!

The Corona Virus is the forerunner. This one is unavoidable! It will infect every living soul, no exceptions. It’s not fatal, but it is potentially disastrous.

It is a direct consequence of the Corona Virus, and no-one can escape this one.

Where is this horror-virus coming from?

We are breeding it. Deliberately. Here in Australia. So is every other country in the World.

Why? How? What is it?

As we know, our government - and governments everywhere - are embarking on “economic stimulus packages” to counter the disastrous effects of the current pandemic.

This is commendable and necessary.

However, it means one thing: they are spending money. But it's money they don’t have! They will have to print it!

This translates to one inevitable result: a highly infective economic virus.

It’s called INFLATION.

Inflation means RISING PRICES - of everything. Your Cash will lose value. Your money will buy less at the shops. Everything will cost more.

You will be poorer - inevitably.

Australia has enjoyed almost three decades of economic prosperity and negligible Inflation.

No doubt, we are well placed to weather the economic storm, but - unavoidably - the price will be high inflation - the disease of the 1970’s and 1980’s, but this outbreak will likely be worse.

Here’s the Question

Is Cash (in the bank, or under the bed, or in your SuperFund) the safest asset?

Interest rates are the lowest in living memory and are destined to fall further. Couple this fact with the government’s printing money and we have a potent formula for personal financial disaster.

The Lesson - The Safeguard

Do not be tempted to turn your investment assets - whatever they are - into Cash.

Inflation means that you will need more cash to pay for goods and services, certainly. But equally, you’ll need more cash to buy shares and real estate. They - notwithstanding the present (and future) volatility - will hold, and increase their value.

From past experience, real property - that is, shares and real estate, and not cash - will prove to be the safe haven for your investments.

In summary, we know the economic virus is coming, but - to the wise and the practical - and the faithful - we can avoid infection.

Cash is certainly not the medicine. Cash could be the problem.

 

Please call us if you have any concerns on (02) 9476 2200 or contact us here.

Your financial security is our concern.

­Strategies and Advice? We’re here to help. Call our office on 02 9476 2200