The Dow Jones Index is currently trading at 13,896 points. For some of you, this number is not so significant, and fair enough, but its important because you need to consider the implications for your future savings & investments. This point is just 100+ points short of the record Dow index level of 2008, when the market went into recession. There are of course analysts projecting trouble. Most however are not expecting a setback in the market.
I suggest the Dow Jones will struggle to break through the 14,000 level. I think it will be a tentative break, but ultimately the outlook for the US and the global market place is rather good. We have Japan about to embrace stimulus, we have a buoyant Asian market, reasonably buoyant commodity prices. Get ready for the next leg of this 'boom'. Not ready for a boom? Well, you will end up paying high prices if you wait for your apprehensions to be comforted. Anyway, the fundamentals for the global market place are very good. Care though that Western markets are struggling because:
1. Higher costs of living
2. Wage restraint for the low income earner
You therefore need to ensure you invest in the right stocks; thats stocks with resource exposure; Asian exposure, and indeed all emerging markets. Property in emerging markets makes sense, and you might do ok in Western property markets in the cities as well, as long as you buy in sought-after areas. There will be a lot of people who simply cannot afford to buy into the cities because of wage restraint. No problem, there will be plenty of emerging market retirees, whether doctors, professionals or their parents, as Western immigration standards relax for these people. Expect outer-city development as well as large cities get bigger.
I would suggest this is a great time to capitalise your homes for future retirement by investing in things like solar power, growing your own vegetables. There is no hurry; but there are incentives around to do these types of things, and in the next 20 years it will become more popular as emerging market labour rebalances its pricing with Western pricing. In the interim however, expect low-wage earners to struggle. This is why I say, capitalise your costs if you are retiring in the next 20 years because you will otherwise be impacted by higher food prices. You won't be able to absorb these costs with higher income, unless you work beyond the nominal retirement age.
Asian property markets outperforming Japan Foreclosed Guide Philippines Property Guide
Profit from mining with Global Mining Investing eBook
I suggest the Dow Jones will struggle to break through the 14,000 level. I think it will be a tentative break, but ultimately the outlook for the US and the global market place is rather good. We have Japan about to embrace stimulus, we have a buoyant Asian market, reasonably buoyant commodity prices. Get ready for the next leg of this 'boom'. Not ready for a boom? Well, you will end up paying high prices if you wait for your apprehensions to be comforted. Anyway, the fundamentals for the global market place are very good. Care though that Western markets are struggling because:1. Higher costs of living
2. Wage restraint for the low income earner
You therefore need to ensure you invest in the right stocks; thats stocks with resource exposure; Asian exposure, and indeed all emerging markets. Property in emerging markets makes sense, and you might do ok in Western property markets in the cities as well, as long as you buy in sought-after areas. There will be a lot of people who simply cannot afford to buy into the cities because of wage restraint. No problem, there will be plenty of emerging market retirees, whether doctors, professionals or their parents, as Western immigration standards relax for these people. Expect outer-city development as well as large cities get bigger.
I would suggest this is a great time to capitalise your homes for future retirement by investing in things like solar power, growing your own vegetables. There is no hurry; but there are incentives around to do these types of things, and in the next 20 years it will become more popular as emerging market labour rebalances its pricing with Western pricing. In the interim however, expect low-wage earners to struggle. This is why I say, capitalise your costs if you are retiring in the next 20 years because you will otherwise be impacted by higher food prices. You won't be able to absorb these costs with higher income, unless you work beyond the nominal retirement age.
Asian property markets outperforming Japan Foreclosed Guide Philippines Property Guide
Profit from mining with Global Mining Investing eBook
Posts
No comments:
Post a Comment