The Christmas period is now upon us and no doubt any thoughts about the world of investing will be put aside. This is a time for families and friends, holiday pursuits and indulgence. So here are some final thoughts before everyone switches off.
Firstly. the great Australian property boom of the last few years looks finally about to burst. Everything lately has pointed to a real slowing down of the market, particularly investor fervour for a property.
So to all those ‘investment experts’, ‘off the plan’ salespeople, well-meaning relatives and anyone else who confidently proclaimed that you can never lose money investing in property, shame on you! To quote from the great George Harrison “all things must pass’. (Investment booms included)
But as is always the way when investing, “just as one bus leaves, another arrives’. And now we are at the dawn of the great cryptocurrency boom. But before you start frantically ‘mining’ Bitcoins, it’s always ‘sage advice’ to heed some ‘sage advice’. And there can be none better at this time than the words of the great Warren Buffett who suggested, “Never invest in a business you cannot understand.”
So for those tempted by the enormous ‘Bitcoin’ profits currently being generated, make sure you thoroughly educate yourself before committing your money. Importantly, learn about the process of ‘bitcoin mining’ paying particular attention to the enormous energy consumption used in the pro- cess. My own thoughts suggest that in today’s ‘greener’ world, there will be some who’ll perceive this process as a rather spurious consumption of valuable energy. This just might end up becoming the ‘Bitcoin’ Achilles’ heel.
And most certainly familiarise yourself with ‘blockchain’ technology. This digital ledger system is apparently going to revolutionise payment systems. So a greater understanding of this aspect alone could reward long-term investors with some great investment opportunities. Remember; keep well abreast of the investing environment, it’s dynamic, and therefore immensely profitable to those who stay in tune with it.
Take a look at this post on the investment environment to get a good idea of what you need to know.
And whilst on the topic of sage advice, and despite having long been short on any soothsaying ability, what better way to conclude this year than with a few completely unfounded predictions for the new one approaching.
So here you go;
- Donald Trump I believe is actually good for equity markets (if nothing else), failing him totally destroying life on earth, I am expecting some good things with share investments.
- For any “I’ll never afford a house in Sydney” brigade, you soon will.
- Expect the bank royal commission to reveal some of the most absurd and selfish corporate behavior you could imagine. It’ll make ‘Chook’ Fowler spill his milkshake!
- Bitcoin will run into a few ‘walls’ in the new year.
Finally, I’d like to wish you all a very Merry and safe Christmas, and a New Year filled with happiness. I hope you’ve enjoyed reading Investor Tuition over the past year. For all those wishing to keep up with the zany world of investing, stay tuned over the holiday period as I will be posting new stuff regularly.
So once again, thank you and have a happy and safe Christmas period with a very prosperous New Year.
