I thought it would be interesting to review that list of "what if" questions, thoughts and concerns that often stop us from taking action, so here they are again listed below.
“what if” is a question I hear from many investors and traders, such as....
What if interest rates rise
What if the housing market collapses
What if the stock market collapses
What if global stimulus doesn’t work
What if the global debt sends the world economies into another great depression
What if we have hyper inflation and money becomes almost worthless
What if we have deflation and assets become almost worthless
What if there is a war
What if Europe falls into total chaos via a collapse of the Euro
What if China collapses
What if it’s all just a global bubble and a house of cards destined to end in certain disaster
Another look at “what if”
What if interest rates stay low for many years
What if the housing market does not collapse but slows to a steady long term growth
What if the stock market does not collapse
What if global stimulus does work
What if the global debt slowly erodes via steady growth and a rebuild of confidence
What if we have moderate inflation stimulating healthy asset growth
What if we have deflation in areas that assists the economy eg: energy costs continue to decrease stimulating households and business
What if there is not a war
What if Europe does not fall into chaos and slowly rebuilds
What if China and India pick up the European slack and drive the Northern hemisphere economies
What if we are on the verge of an incredible period of prosperity like never witnessed before, driven by technology, emerging economies, global co-operation and competiveness.
Stock and property markets have not crashed. Despite recent unexpected events (like Brexit and ANOTHER Australian Prime Minister) the global and local economy seems relatively on track, so all that worry has been for nothing. I think it’s fair to say that no one would have been able to predict how things are now 16 months ago, the same way attempting to predict the future of markets is pointless. So perhaps rather than worrying, wondering and possibly regretting you could contemplate a new approach?
Here is what we do know
We know that people that do not plan, and therefore make unmeasured decisions, often fail. People that do plan, make measured decisions based on probability and risk control, often succeed. In the last 16 months those that calmly persisted benefited, those that did nothing did not.
What is happening?.................. markets are rising
Why?..........................................lots of reasons, some we know, some we don’t
What to do now?.........................put your plan to succeed in action
Don’t have a plan?......................that’s your first job to do then, get one.
I will be giving a free lecture about what I do about the “what ifs” on the 17th August at Speers Point, the link below has more details
Keeping my theme from the last news letter regarding the troubles of violence in the world, a wonderful quote by Mihaly Csikszentmihalyi from his book Finding Flow.
“Good is the creative overcoming of inertia, the energy that leads to the evolution of human consciousness. To act in terms of new principles of organization is always more difficult, and requires more effort and energy….the ability to do so has been known as virtue”