What time is it?

Knowing what to invest in is difficult at the best of times. There is so much information in the media, that often it seems to be conflicting.

A tool called, ‘The Economic Clock’ has been around for a long while and is based on the assertion that the economies of most developed countries move in a regular pattern known as the ‘boom & bust’ cycle.

The economic clock is a composite of individual economic indicators such as interest rates, employment real estate and the share market. The economic clock depicts the sequence of events in an economic cycle that influence the value of the asset classes.

Each event in the cycle tends to be the result of the proceeding economic condition.

While the clock is not fool proof, it does demonstrate indicators to watch out for.

How has the ‘clock’ played out in real life?

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It has been memorable to say the least!

• Here is a brief overview of what has happened & how this downturn compares to previous ones:
• Australian shares are going to post a negative return in excess of 20.00%. For the most part, all sectors performed very poorly and no share market around the world was spared.
• January & February in particular, saw fear reach epidemic levels. There was the near meltdown of the global banking systems including the failure of Lehman Brothers.

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