David says: “The important point to note here, before the inevitable comparisons are made with 2008, is that this is not a financial crisis. With the global realisation that China is slowing as it transitions from a manufacturing based growth model, to one more akin to consumption driven growth, a number of underlying assumptions which have been used to support the market have been brought into question”.
David goes on to explain what is really behind the current situation and whilst there are some risks ahead, it is not like the 2008 crisis.
I found his article a bit technical, but drew a lot of comfort from what he had to say.
It also reinforced my belief that in the long term, property investment will provide the benefits we are aiming for particularly in terms of retirement.
If you would like a copy of David’s article, please email me at: kevin.hodges@kevinhodges.com.au and I’ll be glad to send it to you.
