I just read this article through “The Bull” website. A lot of information in there and hard to digest it all
It’s sobering reading and it’s painting the Economic picture in the worst possible way it could.
As if there is nothing positive in the economy?? Maybe there isn’t.......
Everyone can agree that the housing market is extremely overheated in Melbourne and Sydney surely.
Given this is a share investor/reader forum maybe we can get some discusseion going
as to the best way to prepare for a housing bubble bursting and what companies or even better company Characteristics will be best insulated for an event like this.........
My initial thoughts are sectors like Healthcare (CSL, Ramsey to a lesser degree, others?) would be somewhat insulated due to the necessity of good health being High priority and often essential.
Usually Telecommunications sector Is somewhat insulated in a crisis period because people have no disposable income and will tend to stay at home more using internet for entertainment watching tv shows, Netflix being a prime example that I feel would do well during a downturn or at least hold fairly steady.
If the AUD tanks that means companies exporting and earning USD or other currencies could actually benefit substantially. If they have debt locally they can pay that down much quicker and AUD revenues would be much higher. The disclaimer to this is obviously where the money is coming from and if it’s from China during a downturn in the Chinese economy then there is high risk of loss of sales/customers and hardship. This is something I would like to discuss and need to consider given I’m quite heavily invested in the lithium space which has Chinese offtake partners but through a German subsidiary.
Very interested to hear other people’s thoughts.........
