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31 Aug 2017

GFC: Asset Bubbles

The Global Financial Crisis (GFC) hit the World in 2008 with a devastating impact on growth assets (defined as property and shares) but it has also created an opportunity for investment.

The financial catastrophe bottomed out in March 2009 leaving Australia, the United States, Japan, United Kingdom, Germany and France all with exceptional buying opportunities.

Presently, we are on the eve of the 10 year anniversary of the GFC which was when the Australian All Ordinaries Index peaked at 6,853 on 1st November 2007 after which it all collapsed except for Australian residential property.

We have attached a chart to remind investors that booms and busts in financial markets are not new, they repeat with constant regularity but the path is always different which is why speculating is a recipe for failure.

As Warren Buffet has repeatedly stated, the key to accumulating wealth is to buy quality assets at reasonable or better still discounted prices.


At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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