How to Stay Ahead of the Markets

trading markets

Dear reader,

One of the benefits of writing to you is that it gives us a chance to try and provide you with something interesting, actionable, something that you can put to good use. And as you’re probably accustomed to, sometimes things that are a bit on the edges of the bell curve.

That’s not always easy to do. It’s even harder today when the mainstream media have figured out there’s a lot of fun things to cover out here as an outlier.

Nonetheless over the year so far we’ve covered things such as:

  • Cannabis,
  • Self-driving cars,
  • The Aussie economy,
  • Kakistocracies around the world (Google the term), and,
  • The wild ways of the crypto markets.

That’s not an exhaustive list. But it goes to show we try and look at things from all angles. Importantly we try to give you something useful to action to improve your knowledge base and ultimately your financial security.

We do our best to warn you of impending crises. And we also do our best to alert you to potential life-changing opportunities when they arise.

Sometimes we’re right. Sometimes we’re wrong. But on the balance of it, we’re often far more right than wrong. One of the things we’ve been very right about is the Aussie property market.

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Look for warning signs

In February 2017 we suggested the Aussie property market was set for some pain. Here’s proof:

On 23 February 2017 we wrote:

Imagine if the property prices in Australia were to fall by 20%. Imagine what it would be like if you have bought a house in an overheated market, say for $800,000. Then only one year later you see it worth just $640,000.

Following up the next day on 24 February 2017 we wrote:

In my view buying a house in Melbourne or Sydney right now is the worst financial decision you might ever make. I should probably expect the hate mail to flood in at this point.

And we finished off that piece on the 24th by saying:

This all builds to a property crisis the likes of what the US and the UK had to deal with. And that’s when young people should be looking to buy.

This is all against a backdrop of banks increasing rates, the economy struggling along, and full time jobs becoming harder to find.

There’s a crisis coming. It’s coming soon. Property prices don’t always go up, and soon they’ll be coming down. It will be a crisis of income that pushes it over the edge. And it will be a whole bunch of overexcited young people left holding the can as they lose their wealth.

Don’t buy into the hype. Put your money somewhere other than property, and be patient. Your time will come. And if you’ve played the long game, you’ll have a truckload of money ready to buy up any house you like as the prices plummet and the stupid money washes down the drain.

Don’t say we didn’t warn you. The problem is going to get worse as those that got into the market right as things started to kick off get panicky. We read in Domain just last Sunday:

Jason Real Estate’s Vince Casimi said one of the properties offered at auction – a five-bedroom house at 2 Terrick Court, Greenvale – had been bought for $750,000 about six months ago.

He said the vendor was selling because of a change in circumstances and just wanted his money back. However, at the weekend the property was passed in after snaring a top bid of $700,000 from the sole bidder at the auction.

Get used to this kind of thing folks. But now is too late to do anything about it. The time to sell up was last year. We expect to see floods of investment properties hit the market. We expect supply to skyrocket and demand to hold off. We expect at least 20% price falls that we’ve been saying are coming.

Control the FOMO

The good news is that if you listened to us you should have 21 months of extra savings tucked up inside your cash coffers. Or if you’d been putting money into the markets in the right way you could be sitting on a pretty penny more again.

If you’re still waiting to get yourself on that property ladder, then fortune favours the bold. And in this case the bold thing has been to ignore the FOMO (fear of missing out) and be patient.

However, FOMO is the single hardest thing to deal with when it comes to investing.

We know because there’s been times in our career where we’ve successfully ignored it and sometimes not.

FOMO leads investors to buy high and ultimately sell low. This is the mentality of the crowd and it’s hard to stop. That’s why the most important thing you can do to beat markets is to control your FOMO and act on your own conviction.

That could be property, stocks, art, wine, cars and crypto — it doesn’t matter what it is you’re buying, what you need to do is be rational and act on smart information.

Figure your timeline, assess the current state of the market and make the smart decision.

That means not buying property in the last year but waiting for the crash to come — and it is.

That means not falling for the false tech crash a couple of weeks ago, but seeing it as a massive buying opportunity.

That means not listening to the crowd that bitcoin and crypto is one giant scam.

Be smart. Control your FOMO. Act with conviction and make investments with a plan, timeline and rational approach. Do that and you’ll set yourself up to beat the markets.

Regards,

Sam Volkering,
Editor, Secret Crypto Network

PS: Crypto expert reveals the five things you must know to profit from the coming crypto revolution. Get the free report now.

Sam Volkering

Sam Volkering is Editor for Money Morning and its small-cap, cryptocurrency and technology expert. Find out what he has to say here with all his latest articles.

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