Less Hubris = Economic Recovery
October 9, 2012 Leave a comment
When it comes to investing and providing advice to my clients, living in the country offers many benefits.
It allows me to eliminate the noise of unimportant information and news. The slower lifestyle trains you to step back and observe from afar.
One of the highlights is travelling from regional Australia into metropolis Australia to meet with clients, watch crowd behaviour and spot some trends.
This week, I have seen the economy on Queensland’s Gold Coast still in the doldrums. Bank lending is low to non-existant, house prices are wallowing (many below replacement costs), vehicles are being repossessed, restaurants are empty and tourist numbers are down.
In contrast, I see the economy in Melbourne improving.
The difference between the two cities is that people on the Gold Coast seem to have such a high level of confidence and opinion of their economy, that they are in denial of their existing situation as long as their credit cards are still able to fund the charade.
People smile at you but you can tell it’s under duress.
In Melbourne, however, they’ve got their “heads down and bum up” and are getting on with it. They have absorbed the economic pain of the past couple years and are beavering away at their work and businesses.
When they lift their head and smile, you know it’s genuine.
Overconfidence can be dangerous to your financial health!
