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by Craig Coetzee

Good riddance to 2008, a year that will not be remembered fondly, but it will be remembered. Whilst the signs were there, no-one was clever enough to foresee the extent of the difficulties or the way they would compound on each other – we certainly weren't. This collapse was different. It is common for the banking sector to suffer as a result of recession but rare for the banking sector to cause one. Share market valuations were not excessive and while deep value was difficult to find, there was no hint that underlying value was about to be ignored. Just as it is impossible to predict irrational greed, it is equally impossible to predict irrational fear. Caution was insufficient, concern would have been better and downright fear would have been right on the money.

In building a report about investment ideas we look to the future. No-one can say what will happen in the short term, but we can focus on selecting investments that will likely benefit from long term trends. In order to benefit, however, the investments need to survive and such was the extent of the credit crisis, most of the ideas we putforward last year have suffered. Some ideas and companies have failed completely, along with a number of the biggest names in world finance.

Taking a long term view, there is only one likely destination – the world and investment markets will return to normal as they have in the past. This does not happen by magic. After a period of disruption, life always returns to normal. Only the nature and thelength of the journey to normality are unknown.

Australia's ageing population and the threat of climate change, are very real trends that have not changed since 2007 and will define our economic landscape well into the future.

The most likely outcome is that for much of 2009 the world economy will struggle and western economies will likely contract before recovery begins later in the year. This view is predicted on the assumption that the concerted efforts of government and regulators, of a magnitude and breadth not seen since the 1940's, will be successful in averting disaster.

Our 10 best investment ideas for 2009 are as follows:

  1. Maintain liquidity
  2. Australian industrial shares – Go for the top shelf
  3. Energy, food, but maybe not resources (yet)
  4. Banks and financial services
  5. Recapitalised real estate investment trusts (previously known as Listed Property Trusts)
  6. Infrastructure – The builders
  7. Emerging markets
  8. Healthcare
  9. Generational change – technology drivers are demographic
  10. Watch out for the long term interest rate increases

The coming year is unlikely to be as difficult as 2008, but then few years will ever be. At some point the situation will improve and this is likely to start in 2009. There is tremendous fundamental value in investment markets and those who stay the course will be rewarded. However, patience will likely be required.

If you would like more information on the above, or would like to speak to a WHK Financial Planning Representative, please don't hesitate to contact us using the details on the opposite page.

Any advice contained in this document is general advice based on the investment merits of the security or issuer alone without taking into account any person's investment objectives, financial situation and particular needs.

The information contained within this document was compiled by WHK Financial Planning, a registered trade name for Investor Financial Planning (IFP), in conjunction with Prescott Securities Limited (PSL). Both IFP and PSL provide no warranty regarding the accuracy or completeness of the information. All opinions, conclusions, forecasts or recommendations are reasonably held at the times of compilation but are subject to change without notice by IFP and PSL. Both IFP and PSL assume no obligation to update this document after it has been issued. Except for any liability which by law cannot be excluded, IFP and PSL, its Directors, employees and agents disclaim all liability (whether in negligence or otherwise) for an error, inaccuracy in, or omission from the information contained in this document or any loss or damage suffered by the recipient or any other person directly or indirectly through relying upon the information.

Before making an investment decision based on such advice, the recipient must decide whether it is appropriate to his/her needs or seek specific professional advice. Should consider the acquisition of a particular financial product as a result of the material contained, your should obtain a copy of an consider the Product Disclosure Statement for that product before making any decision.

IFP may receive a fee for advice and/or the implementation of an investment decision. IFP, PSL and their representatives may have financial interests in some/any of the product(s) included within this report. Investor Financial Planning Pty Ltd (IFP) is the holder of an Australian Financial Services Licence No: 238244. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.
Posted in business |
Posted by Craig Coetzee
22 Apr 2009

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Some want to come to Australia,others want to return back home to South Africa,it is has now become a serious question for many do we leave,and for others do we return to the land of our roots or birth,the answer is blowing in the wind
Rating: 5 / 5
by Karooseun on 28 Jun 2009

Maintain liquidity, which currency?? 2-10 are all stocks and shares, why should they improve??? you finance advisors didnt call the last fiasco, why should we trust you know??? there are many other investment options Property, gold, and the best of all is good, old-fashioned entrepenerial skill, why scadge off others when you can do it alone
Rating: 1 / 5
by rob crox on 17 Jun 2009

When will an investment adviser be paid only on the returns he makes for his clients !!!!!
Rating: 3 / 5
by Graham Dane on 18 May 2009

What about property investment? Property has increased in value by 10%/annum ffor the past 50 years and doubled in value every 10 years for the past century!! Is it that financial advisors are not allowed to sell property?
Rating: 2 / 5
by Christie Baygan on 18 May 2009

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