Finance and Investment Cycle | Investment Cycle Type - YouTube

Hi guys!

In this video, we're going to be talking about investment cycle.

What is an investment cycle, what are the different types of investment cycles graded

against what are the different types of investments.

What is a finance investment cycle or life cycle?

Every investment has a different cycle obviously.

Are you getting in at the start of the property market and getting the middle and getting

at the end.

Is there a lot of volatility in the markets like right now which then makes term deposits

terrifying to be involved in and sort of why.

So everything doesn't just have its cycle to start and end and then you get your return

which is part of a cycle, but there's the appropriate time to be in the appropriate

types of investments with their cycles.

So you just mentioned term deposits with a sense of alarm.

Let's start with them.

What would be the finance investment life cycle of a term deposit?

Start to finish.

So let's actually look at it on its own merit to start with.

You fix your money for a fixed term to get a fixed return.

So you could be fixing for one year and getting 1.5 percent return.

You could be fixing for three years and getting a 2.5 percent return on the money.

That is fixed to the rate that the bank is actually receiving as well.

And this is where I mentioned not mentioned here the fear is in the current environment

now where a lot of go-to people have gone, I'm just going to fix my monies.

Particularly older people have gone I'll fix it it's with the bank, it's safe, it's all

good.

And Australia right now has a 0.25 percent cash rate.

The fear that we have is as we go to a zero percent cash rate, you have to start paying

the bank interest on money that you actually got in those fixed terms.

So fixed term cycle is start to finish in the return you get but then there's the cycle

of where we're at in the investing world and the cycle for fixed term deposits right now

is at the absolute bottom end where you wouldn't get involved.

If the life cycle right now, a fixed term deposit is scary.

what is something that is more enticing for the where the market is at today?

Property and I'm not the property guy.

I'm quite often when you look at my websites, I'm sort of very anti-property growth.

I like to invest in things I'm trying to make money that come in to hand me cash over the

counter every day.

But right now if you are getting involved into property, this is the very start of the

cycle.

We're coming out to the bottom, we're about to see you know drops in the existing property

prices of up to 40 percent here in Australia.

But what we're seeing is the growth and sale of off the plan property is through the roof

because the government's doing a lot of support.

So we'll go through the cycle now.

And if you look back to the GFC and what happened coming through the GFC as we came out of cycle,

we had the big property boom.

So you're at the start right now.

So if you were looking to invest in property, off-the-plan property, now would be the time

to do that as we start going through the cycle and heads up.

Alright so let's do a quick investment life cycle on a property investment.

What does that look like?

Start to finish.

So when you look at a property investment, you're generally looking at a seven year stretch

and you want to invest in the property today, you want to pay interest only on the property

and you're hoping that the property goes up over that seven years that you make a couple

hundred thousand dollars either by selling it or taking the equity out of the property.

So that's the cycle by itself.

And then as I mentioned the cycle at the moment for the property sector is right at the very

start so if you were going to get into property for its own cycle, now would be the time to

do it because the whole property industry is at the start of the cycle.

Alright good.

Are there any other particular areas that you might recommend given the investment cycle

at the moment?

So many answers to that question.

So there's obviously with a global sort of depression and localized recessions, there

is opportunity just absolutely everywhere.

I'm very heavily invested in the mining sector which I love.

Anything to do in the building sector because that's going to boom obviously with the property

sector booming as well.

And resources.

Anything in the precious metals sort of resources, gold is at a very high, the highest it's ever

been.

So price but that won't go down for a while and the beauty with gold is it's constantly

got a cycle that's evolving all the time.

So you'll never really going to lose money, you just have to hang on to it long enough.

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