21st Century Academy

Rather than take the government’s word for it, consider the recent report from the Organisation for Economic Cooperation and Development (OECD) that states Australia’s economy is the one of the least affected by current recessionary conditions across the globe. Compared to other advanced members of the OECD, Australia is currently one of the healthiest countries, economically, throughout the world.

Current State of the Economy

Although the year 2009 has yet to end, the OECD forecasts the economic growth of our country to end somewhere around a positive 0.8 percent and expects it to increase another 2.4 percent in the upcoming year. Compare this to the economies of other OECD members which are expected to have decreased in 2009 by approximately 3.5 percent. The prediction is that the year 2010 will show only a modest economic growth of 1.9 percent.

Earlier forecasts regarding the unemployment rate have proven to be less than accurate, as well. According to OECD, it is expected that unemployment in 2010 will peak at 6.3 percent, far below the average of 9.1 percent in other advanced OECD countries. This is also much less than the government’s forecast of 6.75 percent.

Major infrastructure projects financed by the government and slated for the next year will boost company profits. Business credit has been very weak but with an economic rebound, that should change. Stimulus funds will be gradually reduced as the interest rate increases, both signs of a healthy economy. Housing prices are rising along with demand.

Good News for Investors

For the investor, a stronger economy represents real opportunities to become financially independent. This is a great time to invest in the stock market or real estate market. With recent ETS legislation shot down, investments in utilities and manufacturing are sure winners.

Learn more about how to take advantage of the strong economy and identify the best money-making opportunities by enrolling in Jamie McIntyre’s 21st Century Academy educational courses. As one of the country’s premier financial consultants, Jamie McIntyre is an expert at identifying economic factors that influence the ability to make a profit and is the best advisor regarding current investment prospects.

Particularly in a volatile market atmosphere, many less savvy investors rely on old myths they believe to be true. It is a natural tendency to panic as the market swings downward and begin selling off assets. Other investors take the opposite tactic, developing a laissez faire attitude and failing to act when they should. Both of these tactics are doomed for failure because they rely on some of the commonest investment myths.

When the Market is Bad, Hold

A long-term investment plan is often built on the premise that no matter what the market does, leaving investment dollars where they are is best. After all, the market will rebound eventually, right?

Sure, the market will rise again, but a stock worth little to begin with will almost never rise to a level that makes it highly profitable just because the market turns. Just like buying antiques, items that were originally worth a lot of money will still be the highest valued decades later. Low-priced stocks need to be purged from your portfolio before they result in even greater loss.

Besides that, how long are you willing to wait? Consider this example. Say you bought shares of a top-rated stock prior to the correction of October 1987. How long would it have taken you to regain the same value? The answer is ten years. Still other stocks have yet to reach the same level of value they once enjoyed. Obviously this is too long if you are ever going to attain financial independence in this lifetime.

When the Market is Bad, Sell

At the opposite end of the spectrum are those investment gurus who maintain you should withdraw from a declining market immediately and place your remaining investment capital elsewhere. This could be just as bad a mistake as holding onto your all your stock certificates in the hopes they will regain value.

Highly valued and strongly performing stocks are always a good investment, no matter the whims of the market. This is just one part of a successful portfolio that will create wealth in the short and long run. Diversification is important. Assess the performance of each investment and make decisions to sell based on more than just the recent activity in the stock market.

When it comes to creating wealth via investments, there is one principle that always holds true and that is to buy low and sell high. Forgo rash decision making and stick to your financial goals – but only when it makes sense to do so.

The only way you can truly create wealth and plan for financial independence is to take opportunities when they present themselves. Of course, it’s not always quite that easy. First you have to be prepared to act, then you have to identify opportunities as they occur, and finally you must take action.

1.    Prepare
2.    Identify
3.    Act

You may negatively associate the term “opportunist” with someone who takes advantage of the misfortune of others. This is not necessarily true. An opportunist is really nothing more than a person who acts on an opportunity, regardless of possible negative consequences. Those consequences may ultimately prove to be negative for the opportunist himself, or for someone else.

How to Become a Opportunist

We probably do not want to think of ourselves as a vulture waiting to swoop down on those less fortunate. The truth is, good investments and financial strategy often depend on taking advantage of economic and market conditions.

What opportunities are currently present? The real estate market has experienced an extreme downturn in recent years. This presents an opportunity to invest in property by lowing low, hanging onto your real estate, then selling it when the market rebounds.

The same holds true in the stock market. As pricing falls, there are many opportunities to buy up undervalued shares and wait for the right opportunity to sell and realise a profit.

Consider, too, the latest initiatives in societies across the globe. Renewable energy sources are a hot topic – and hot stocks. If you can get in on the ground floor of a new company poised to make a real splash in the market, this presents a great opportunity for building wealth.

Be Ready

The first part of being ready to take advantage of opportunities is to keep a close eye on global trends. Watch stock market activity in various countries. Look for economic changes and political activity that directly affect stocks and other types of investments.

The second part of the equation in becoming an opportunist is accumulating enough assets to make funding possible. The best opportunity in the world is not going to benefit you if you do not have the financial means to make it happen. Start by learning all you can. Reading Jamie McIntyre’s free e-book is a great start to get you thinking about ways you can amass an investment stake.

Continue with the 21st Century Academy Wealth building program and you will be poised to take advantage of opportunities, as they occur. Become an opportunist. It is a great way to positively invest in your future.