You have no doubt heard over the last few weeks a lot media speculation about the state of the economy. We have read everything from ‘we are heading to a recession’, to another ‘financial crisis’ and even the ‘death of free markets’. Rather than focus on the opinions of some, lets look at some facts.
There are a few things we know through the economic data we receive;
Not all of our information is data related. We also know some non-data related economic factors such as;
From looking at this information we know, we can ascertain that things are definitely slow at the moment, but are they as bad as the media makes out?
There are plenty of things that we don’t know;
We can take action on the real data we receive to try and reverse this slowing trend and stimulate some growth in our economy.
What we shouldn’t always act on, but too often do, is what we don’t know. This is just speculating on what is going to happen, which is the main cause of panic, and the media plays a large part in this. Media is a business, and they need people reading there content in order to maximise advertising revenue, and profit. They are in the selling game; selling you content, ideas, information and opinion.
A car companies will exaggerate how great their product is, because good products sell. Pharmaceutical companies will exaggerate how effective their drugs are, because desirable results sell. And unfortunately, the media will exaggerate how bad things are, because bad news sells.
The current data available suggests things aren’t quite as bad as the media will have you believe, but we cannot predict the future. Economic conditions can deteriorate or improve, depending on how investors and consumers react to the current climate. There are a couple of things you can do however, to help give you the best chance in riding out these economic troughs;
If you have any question or concerns about how the current economic climate is effecting you, give the team at Steve May Financial Services a call and start a conversation today.
You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Sensibly Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website
Nick Shanley, Steve May, Luke Styles and Shanley Financial Planning T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Sensibly Pty Ltd, AFSL 533923. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guides.
Shanley Financial Planning Pty Ltd trading as Steve May Financial Services (ABN 19 612 825 180) is a Corporate Authorised Representative of (1265706) of Sensibly Pty Ltd (AFSL 533923)
Nick Shanley, Steve May and Luke Styles are Authorised Representatives of Sensibly Pty Ltd (AFSL 533923)