What is Happening in the World?
It’s easy to watch the Prime Minister attending the United Nations’ General Assembly to think that the whole world is going to hell in a hand basket and that there is no way back.
The simple truth is that is not the case, but I suspect we’re in for some tough months, if not years.
Yes, there have been some gigantic missteps. From the outside, the US has appeared to have misplayed the entire situation in the Middle East, going back to when Hamas staged its appalling attack on Israel.
This has caused significant restlessness. US bond rates have surged to multi-decade highs, driven by a sharp sell-off as US economic data and rising energy costs fuel fears of persistent inflation and further interest rate hikes.
These factors are causing a similar response in the domestic economy, made worse by the Federal Government’s heavy overspending sitting in excess of 26 per cent of GDP and productivity is stagnating at 0.1%.
As the former ACTU boss said recently, the Government is having a laugh if they think things are getting better as house prices fall, real wages drift lower and prices for everyday items and fuel climb steadily higher.
This negativity is being reflected in the local share market. While the retirees’ best friends, the big banks and big miners are holding firm, other sectors in the market are down by more than 20 per cent and falling.
Finally, I can’t help writing on the proposed listing of a company called Firmus. It’s very much a case that if you live long enough, you will see everything.
But before you read my final article on this company, tell me how much would you pay for a company that has never turned a profit and is expected to lose US$77 million during this half year?
Does $90 billion seem a tad expensive? Well read on.
Don’t forget the release of my second book, The Bank of Mum and Dad: The No Regrets Guide to Helping Your Children Financially. Only available from my website www.patriciahoward.com.au this is a must read for anyone looking to financially help a family member.
It could be a lifesaving, if not retirement saving, moment for them.
Patricia Howard
0427 429 817
Patricia@howardosmond.com.au