/Cycles

Why Are There Still So Many Jobs?

WHY ARE THERE STILL SO MANY JOBS? I can still remember vividly when I got my first job. My red and white checked shirt matched exactly the table cloths. At 14, my first job was as a “Busboy”, that is I cleaned and wiped tables at Pizza Hut… It was a fun job, greeting and talking to people as I worked. The pace was fast and the time flew. Plus, there was always plenty of Pepsi and Pizza for the hard working staff?! Try finding a dine in Pizza Hut store these days. Yep they exist, but they are hidden away. See Pizza Hut prefers the more profitable take-away business (think less rent and wages due to the reduced floor space….) Like many other jobs that have been changed or replaced […] 150

Changing Sub-Terra Firma

CHANGING SUB-TERRA FIRMA Each Cycle is Same Same, but Different. Each Cycle brings new opportunities due to investor memory, legislative and social changes as well as changes to investment classes. Much has been spoken about Sydney’s BOOMING property prices. The median cost of a home in the nation’s economic capital is just shy of a Million BUCKS! An extraordinary amount. The cost of A Grade office space has now surpassed $1,000 per m2… So, is it any surprise to see the Cantillon Effect in action? Absolutely not! History warns us that this is EXACTLY what we should expect. As we know each new cycle brings about a new twist. New Opportunities, unique to the cycle in question. The Cantillon Effect tells us that as the cost of land increases, humans will become increasingly inventive in their quest to extract […] 150
By | 2018-12-19T12:48:46+00:00 December 19th, 2018|Cycles, Property, Technology|0 Comments

Geniuses Wipe Out Investment Funds

GENIUSES WIPE OUT INVESTMENT FUNDS One of my very first trades was a classic buy high and sell lower scenario. It was one of those defining moments that is forever etched into my memory and the lessons learned remain strong. Back when I was starting out investing (read gambling there), I decided to buy a small mining stock Helix (HLX) on the basis of, well Greg the computer guy – he gave me the inside word. Yes, I thought I was a genius and was going to make a bucket of bills – ten-fold my money was the plan! But you no doubt already know the end to this story and the subsequent lessons learned. As you can appreciate, I took a beating the day I sold, both emotionally and financially, despite it being a small loss in the […] 150

Mafia – The Superheroes of lemon growers & the boom-bust cycle

MAFIA – THE SUPERHEROES OF LEMON GROWERS & THE BOOM-BUST CYCLE Lemons. Great for a sore throat and funniest home videos, especially the reaction when you give a lemon to a toddler to try. But would you believe they are responsible for the growth and early success of the Italian mafia? Back in the mid-1700s, seafaring folk were dropping like flies. If it wasn’t the rum, a wretched disease known as Scurvy got ‘em. The symptoms of Scurvy include weakness, feeling tired and aching all over. As the condition worsens, it can lead to personality changes, and finally death from infection or bleeding. Pretty horrid stuff. But life changed forever for many a sailor when a Scottish doctor by the name of James Lind found that Vitamin C rich fruits, like lemons, significantly helped sailors […] 150
By | 2018-12-11T10:33:43+00:00 November 23rd, 2018|Cycles, Technology|0 Comments

Walk and Learn

WALK AND LEARN Walking is a wonderful way get some exercise, see some sights and learn about history while continually observing how our Five Drivers manifest into both our economy and land prices. Ian and I set off to conquer 25km of the Clare Valley Riesling Trail, while my mum, Michele, and her very good friend Viv, walked from Henley Beach to Adelaide City along the Linear Park bike track. We were walking as part of our 50Fifty Challenge. THE RIESLING TRAIL The Riesling Trail started life as a railway line between the postcard towns of Riverton & Clare in the beautiful Clare Valley north of Adelaide. Originally it was the discovery of Copper at Burra that saved South Australia from potential bankruptcy in 1845 with Clare providing […] 150
By | 2018-09-24T14:39:23+00:00 September 21st, 2018|Cycles, Technology|0 Comments

Trains, Planes & Flying Cars

TRAINS, PLANES & FLYING CARS We often talk about how advancements in technology lead to increased productivity which of course must manifest back into the land price. Humans are wired to direct their energy and labour to the most productive purpose continually striving to create or obtain more by doing less. Currently we are seeing the initial growth in the autonomous transportations sector. For many this just seems too far fetched. They just can’t see the possibilities. Many science fiction films from the 1950s depicted humans fancifully sending rockets to the moon, something that took until the 1969 Apollo 11 mission to achieve. The rapid growth in the autonomous transportation sector will profoundly impact human productivity much sooner than we expect. Rio Tinto is a step closer to automating its 1700 Kilometre Pilbara train fleet after they recently overcame another hurdle being granted a […] 150
By | 2018-09-21T10:52:07+00:00 September 2nd, 2018|Cycles, Technology|0 Comments

The World is a Changing!

THE WORLD IS A CHANGING! Embrace it or be left behind. The emerging technology we are seeing is quite mind blowing – it’s hard to comprehend just how quickly the world is moving. I was watching a show the other day and it was talking about how the guidance computer from the Apollo 11 trip to the moon had a mega 16kb of computing grunt. A decade later ANYONE could pay $499 and get themselves a Commodore 64, the ultimate 1982 home computer – with 4 TIMES the computing power. This lack of computing power probably explains why Neil and Buzz never played a game of Pong while in space. Can you believe that it took this long to just load the game of Pong?! Click below as I’m sure it will bring back some memories… Now we are on […] 150
By | 2018-09-21T10:58:31+00:00 August 17th, 2018|Cycles, Technology|0 Comments

What Happens to Tall Buildings?

WHAT HAPPENS TO TALL BUILDINGS? As technology improves we become more and more productive. Which in turn means that each square metre of land becomes more and more valuable. Given that we have the propensity to ensure that land is used for the most productive purpose, by definition our cities must become more and more dense as we continually build higher and higher. Land will seek to be used for the highest productive value. As land becomes more scarce (and hence more expensive) it pays to amortise this cost by building higher and higher. That is the more floor space you build up, the less the amortised cost of the land becomes. Technology, zoning (government legislation) creative thinking, and available cash will determine how high we reach to the sky. But to build persistently skyward, […] 150
By | 2018-09-21T11:01:40+00:00 August 12th, 2018|Cycles, Education, Property|0 Comments

Ian & Jenny Flack’s London Monopoly Walk for the Fifty 50 Challenge

IAN & JENNY FLACK’S LONDON MONOPOLY WALK FOR THE FIFTY 50 CHALLENGE The game of Monopoly has bonded (and fractured) many family holidays. There are so many economic lessons to be learned from this game, lessons that its inventor Elizabeth Maggie was wanting to convey, but the world as a whole now just seem to totally miss. Jeremy has written before about the interesting origins of the game. Click here to read about this. There are 40 spaces that surround the perimeter of the Monopoly board and myself and my wife Jenny recently physically walked the real board in London; the whole 28 km stopping at all 28 properties; that’s 22 streets, 4 railroads, 2 utilities and a goal, all in their various colors. Thanks to Jenny for the pictures. To learn more about the Fifty50 […] 150
By | 2018-09-21T11:05:51+00:00 August 3rd, 2018|Cycles, Technology|1 Comment

The Thing About Trump!

THE THING ABOUT TRUMP! I was surprised by the reaction to my blog “The Locational Value of North Korea” sparked. I wasn’t making any political statements or endorsing the actions of those investors that have chosen to purchase a new beautiful off the plan Trump apartments in North Korea’s pretty seaside location of Wonsan…… The point of the blog was not to say the Trump’s vision was correct or fair or that Dennis Rodman is the real economic brains behind North Korea – but to make the point as to how Donald see the world. How he thinks. It’s different you know. He might be the president of the USA. He might be the “Most Powerful Man in the World” – or 2nd most, if he really does work for the Kremlin?! However, regardless of his position, title or how […] 150
By | 2018-09-21T11:12:11+00:00 July 23rd, 2018|Cycles, Education, Property|0 Comments