Financial oppression

We take a high level perspective on the state of government balance sheets and conclude that debt holders have to be prepared to enter an age of 'financial oppression''. - Morgan Stanley Australia 26.08.10

How will you prepare yourself for such a state to survive it and indeed to grow and thrive in it?

Stocks

For now the Euro's fall has ceased, and it is starting to creep up once more. This conversely means the US Dollar's recent rally has turned a corner to head south, which is another reason that commodity prices are back into the green, along with resource stock prices." says Dr  Cowie
He reckons the last six weeks of the year could be very good for resource investors. Good advice to act on now

Property bubble or not?

Australia's most vocal proponent of the country's property market Friday challenged Wall Street investment guru Jeremy Grantham to wager A$100 million on the outlook for the country's housing prices. Christopher Joye, managing director of property research group Rismark International, challenged his equally vocal sparring partner GMO Capital founder and chief investment strategist Grantham to put his "money where your mouth is" on the issue of whether Australia really is in a property bubble. Grantham's downbeat views on Australia's home prices are "sensationalist and spurious," Joye said. Joye challenged Grantham to bet the A$100 million over a three-year term, basing the outcome of the bet on movements in the RP Data-Rismark Australian Capital Cities Dwelling Price Index. For every 1% rise in the index, Grantham would pay away A$1 million, Joye said. But for every 1% decline in the index, Grantham would receive A$1 million away. The trade would be settled at the end of three years with monthly margining to manage credit risk. The high stakes wager comes on fresh warnings from Grantham in his latest quarterly investment letter that house prices in Australia are set to fall as affordability is stretched and consumers are already spending too much on homes. Australian house prices have grown strongly over the last 20 years. In major capital cities such as Sydney and Melbourne, the average median home price has doubled in value in eight years and quadrupled in 21 years.
"If you actually have any conviction regarding your predictions about the 'time-bomb' that is Australia's A$3.5 trillion housing market, we would ask that you put your money where you mouth is," Joye said. Grantham has repeatedly argued house prices in Australia are overvalued warning a speculative bubble was set to burst. At one time, he estimated housing in Australia was overvalued by 42%.
The Reserve Bank of Australia has also waded into the debate saying the bulk of mortgage-related debt is held by those most able to service it. RBA Deputy Governor Ric Battellino said earlier this year the ratio of house prices to income "is not that different from most other countries." Joye has been supported by analysts at Goldman Sachs, Westpac, Commonwealth Bank of Australia, Australia and New Zealand Banking Group and HSBC. Strong population growth and claims there is a chronic shortage of housing in Australia are often cited as reasons to expect strong demand will underpin house price into the future.
But some foreign banks, including Morgan Stanley and the International Monetary Fund, have called the property market overvalued.

Warring over the issue of house prices in Australia has resulted in some strange goings on. Academic Steven Keen walked from the nation's capital Canberra to its tallest peak at the start of the year having lost a bet with economist Rory Robertson that house prices would drop by up to 40%.

Property

If you want to grow your own significant property portfolio, you need to own properties that provide wealth-producing rates of returns.

This means using one or all of the ways listed below:
1)buying a property below its intrinsic value, in an area that outperforms the average over the long term
2) one to which you can add value so you can create some capital growth. This could be through renovations, refurbishment or redevelopment.

This will bring long term sustainable growth

off we go

What do entrepreneurs do? well, not necessarily always go up in balloons but have fun as part of their lives, and what a great birds eye view to see property and combine it with having a great time with friends, so come fly away with me...

our new PM

What is an entrepreneur? According to Wikipedia "An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome"
According to this definition Ms Julia Gillard Australia's new Prime Minister fits the description as she is now in charge of a new enterprise, namely the wise stewardship of Australia.
As such I would like to wish Ms Gillard three things-wisdom, discernment and strength to pursue strong leadership in and of the community of Australian citizens because as Ms Gillard said "No matter which industry, which region or which job – each of us has a stake in the success of all."
Amen to that!

Becoming a millionaire

Now that we can get back on track after our interlude with the GFC, here are some stats that may be of interest to the entrepreneurial woman:

• heading overseas has been of great benefit to the Entrepreneurial woman multimillionaire and buying up big when others were selling at bottom prices, yes, there's always an up to every down! Holding off shore interests has accelerated over the years as globalisation has become more widespread and accepted by the entrepreneur
  
• stick with property even though it was hit by the GFC it remains one of the best ways to become a multimillionaire due to relatively low barriers to enter the market as increases in valuations have grown. buy and hold is the most beneficial property tactic to have. the gain is relatively slow but consistent