I'm monitoring the markets at the moment very closely.
In fact, I've been doing this all year.
Ringing in my head is the old saying that fortunes are made in times of recession.
I've lived through a few, but like all things you need to experience a couple before you finally realise that the above statement is so true.
I get a sense though that some people are missing out. Confused, uncertain, standing on the sidelines and unwilling to make a move.
That's a bad decision…
My work is to make sure that you take the opportunities that are there right now and clearly see the big picture.
So hera re my precitions of the big next moves and also what I'm up to and where I'm putting my money.
The more I look, the more opportunity I see in all areas right now.
Property, stock market and business…
Since March of this year, the All Ordinaries has gone 53% higher. I think we're at the start of a decent upward swing that will probably see our market go very close to its previous all-time high within the next 18 months.
I'm backing this view up by putting a substantial amount of capital in the market as of two weeks ago.
I'm not being foolish about this and I'm taking the precautionary steps of protecting my capital just in case I'm wrong.
My view is there's no point looking back in 2 years time saying, “Damn it! I knew I should have done something – now it's too late.”
That may be the case in 2 years time, I don't know. But if you read my newsletter, you know that I don't sit on the fence.
Roll up your sleeves and take a view either side.
“No view” is simply dumb.
So here we go…
Real estate is going to go higher – we've been shouting this all year. The message is starting to get through, but again I get a sense that some people feel that they've missed the boat.
It's really simple. Average selected property will probably rise by about 20-30% in the next 3 years.
If you simply use a 20% deposit to secure a piece of real estate and it rises by 20%, you've basically got a 100% return on your money without doing a great deal in the process.
If you don't understand how a 20% rise can return 100% on your money, then you need to get some basic real estate education under your belt and understand cash on cash returns.
So I'm buying. With a bit of experience, even in a hot market you can still buy under the market and that 20-30% increase can easily become 50% over the same timeframe.
That means a 200% return on your money. Not many places you can go to and get that sort of return without doing a great deal.
Here's something else that I'm up to… and it's purely come about the rising Aussie dollar.
I'm going to make a special mention here about the rising Aussie dollar which in real terms means the fall of the US dollar.
I'm doing some research at the moment on the real estate market in the USA, the reason why is with a rising Aussie dollar it means that we here in Australia can buy in the depressed market of the US almost dollar for dollar.
Why is that important?
Well, when the US dollar regains strength (and it will), and the Aussie dollar goes back to 70 cents (which is normal), if you're holding US assets you've just made 30% on the currency fluctuation.
Do you get that? Think about it for a moment if you don't.
Also, whatever cash flow you're receiving from US assets, they've also increased by 30%.
Don't be mislead though, I wouldn't buy US assets just on the dollar-for-dollar parity that we're about to experience. The deals have to stack up for themselves.
Now, I know you're not going to believe this – I didn't believe it at first either, but right now I'm looking at certain areas in the States where the previous sale price was around the $120,000 US mark, and I'm looking to pick up the exact same property for about $10,000 – $15,000 US.
The yields of these crazy low prices are around 30%.
I know, I know… How can this be so?
Im sceptical too… But I'm heading over there mid-November to personally check it out. I'll keep you updated.
Next, gold, gold, gold…
The demise of the US dollar, which is likely to continue for at least another 12 months will see gold prices head higher… much, much higher.
I think gold hit $1,063 US at the close of trade today and I think that is confirmation that we've entered into a new phase of a gold bull-market that could see gold at $2,300 per ounce (inflation adjusted) in the next 12-18 months.
The US dollar slide which will go lower, almost guarantees that gold will go in the reverse.
Two ways you can play this… Just ring up the Perth Gold Mint and simply buy chunks of gold. Or, look at specific gold stocks in the Australian stock market and start investing in those.
Whilst I'm bullish on the stock market, not everything is going to go up. My focus is tightly held to the gold and resources sector.
But what about if you're in business for yourself?
Well, now is the time to steal market share from your competitors by being aggressive rather than passive.
I recognised this late last year and went on a crazy spending spree of marketing that was tested and measured to the point where I could almost guarantee that for every dollar spent in advertising I would get $3.50 back.
Instead of pulling back, I went forward in leaps and bounds. A couple of things happened.
I doubled my turnover. Yes, that's right. In the worst economic climate I doubled my business.
I didn't take any massive risks here, I was testing everything and making sure that I was getting a return on my money fast.
The next thing that happened is that we've grown our list size by 250%… and in our business, the real money is in the list.
If you're in business and you want to take advantage of the emerging mega-trends, you really need to start thinking about growing your business and your cash flow so you can start to build capital and invest in the real estate and stock markets.
That's all for now.
Let's see how my predictions pan out in the next 3-6 months. We'll know by then if I'm right or wrong.
Either way, I'm not waiting around to see what happens.
I suggest you don't either, jump on board and make things happen.
No time to be a spectator here, spectators don't make the real money – it's the guys in the game who make the big bucks.