Why following the herd is not always the best thing…

Amid the economic uncertainty leading to recent sharemarket falls around the globe, accounting firm Chan and Naylor reminds people that Australia remains the ‘lucky country’ and there are bargains around for savvy investors in both property and stocks.

Australia is well positioned to weather the current economic storm, according to Chan and Naylor, pointing out that China is now the destination of 25 per cent of Australian exports and Australia’s national debt-to-gross domestic product ratio is expected to peak at around 21 per cent, compared to 110 per cent for the Organisation for Economic Co-operation and Development peer group.

Reinforcing Australia’s strong position is the continuing strength of the Australian dollar, as well as the Reserve Bank of Australia’s continuing expectation of a 3.75 per cent to 4.25 per cent recovery by 2012.

“Even if these figures prove optimistic, Australia is still expected to significantly outperform most other industrialised countries due to slower global growth and returns,” said David Hasib, Chan and Naylor partner and head of financial planning. “The stall in growth should take the pressure off interest rate rises locally with the expectation that we may see a rate decrease in the coming months.”

Hasib acknowledged that in the short term there’ll be some investment pain as a result of the recent volatility. But in times like these, he said, investors should remember their longer-term convictions and look for the opportunity therein.

Read more: http://www.apimagazine.com.au/api-online/news/2011/08/why-you-shouldnt-always-follow-the-herd?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+API_Property_News+%28Australian+Property+News%29

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About davidcutlerproperty
David Cutler is a highly successful sales consultant at Gary Peer Caulfield. David provides clients with six star service customised to their individual needs. From formulating marketing strategies, through to completing contracts, he is diligent, dedicated and highly motivated to achieve the best results. His growing base of happy clients is testament to his ability to develop strong relationships based on mutual respect and integrity. When he is not busy selling property David spends quality time with his young family. And when time permits he also enjoys on and off road cycling and is an avid fan of rugby union’s Springboks.

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