The economies go up and down, the ASX has gone up and average of 14% every year, but for there to be an average you have to have the down years as well, I'm invested with Storm Financial planning who are very cautious in there approach to wealth generation, and they said late last year that they could see this coming, when the market dropped we went and bought more shares, because it will come back, not sure when, but it will come back.
We don't worry about it, we stopped watching the news because they only report on the negatives or the headline grabbing stuff, and even then they get it wrong or miss information trying to be the first one to broadcast some little tid bit of information.
Classic case:
Look what happened in America, a smaller regional bank nearly went out of business, because a rumor started that they were in trouble, the rumor spread, no one checked the facts (The bank was fine and solid), the rumor hit the air waves and the TV news, again no one checked the facts, a rush started of people pulling out there money from the bank, next thing the bank was in trouble.
All because people believed the rumors, a couple of Journo's were to lazy to check the facts of the story.
They nearly destroyed a business because of rumors and speculation.
It nearly happened in the UK, it nearlyhappened here in Australia with a smaller regional credit union.
Classic case 2:
When the shit all first hit the fan a few weeks/months back, I was amazed how many old people were coming in wanting to buy safes because of the financial crisis, (I work in an electrical store, which they think means we sell safes?!?) I asked them, why take it from a bank were it can't be touched and put it in your house where it can stolen, destroyed in a fire or Cyclone.
They told me that the banks were all going to be gone in a matter days, end of the world, we are all going to die, The sky is falling type of stuff.
Sure enough, pensioners are being robbed and having there safes and cash stolen!
The Police have said break in's have risen in the last few weeks because people are storing large sums of cash at home. Duh!!
And even after the Government has said they will guarantee bank deposits, we still keep getting Idiots asking to buy safes,
Them: "The banks are going broke sonny, don't you know?"
Me: "You do know the Government is underwriting the banks don't you, your money is safe"
Them:"The Government is also broke..."
Me: "You also know the Police have appealed to people asking them not to store money at home because of the massive rise in break in's don't you"
Them: "They won't get me, that's why I'm getting a safe"
Me: "They are stealing the safes and breaking them open"
Them: I'll get a good one"
Me: Riiiight, go to Bunnings, I don't sell safes.
Where did this come from? A number of the shock Jocks like Alan jones, Neil mitchell and locally here in Cairns John Mckenzie told people that the sky was falling and to get your money out of the banks now!!!
Again a simple case of don't let the facts get in the way of a good story!!
I highlight these things to point out how many people get caught up and swept along because they don't check the facts, they take every thing the media says as being the truth and the be all and end all of the facts.
Best thing is to just keep cruising along, there is nothing you or I can do about the whole mess, The missus and I still go out to dinner every 2 weeks, we still buy DVD's, we are still going out and having fun, we are just approaching everything as business as usual.
There is no point worrying about things that are out of your control.
