/Wealth

Premierships are Won in October!

Australians love our sport and its Grand Final Weekend! Crows v Tigers               Storm -v- Cowboys What a weekend! But for these teams, their fate of playing in the Grand Final stems from ACTIONS taken LAST OCTOBER…… Ian Flack knows elite sport – he worked in the AFL system for over 25 years. Recruiting, administration and high-performance coaching with clubs like Collingwood and Melbourne. It’s a brutal environment. There are enormous cross overs between Elite Sport and Investing. The need to focus, be resilient and well prepared. The ability to perform under pressure and understand and control your own personal psychology. When working in AFL, one of Ian’s core mantras was “Premierships are won in October”. Sounds kinda crazy when you think about all the hype and excitement that is going on now? The “momentum” that teams bring into the finals, injuries and the 150
By | 2017-10-05T14:57:17+00:00 September 29th, 2017|Cycles, Education, General, Wealth|0 Comments

But Can They Run on Time?

BUT CAN THEY RUN ON TIME? At Calnan Flack we talk a lot about the Wealth Creation opportunities that surround us if you learn to see the Economic and Credit Cycle in action. We talk about the Economic Drivers being Population, Technology, Infrastructure, Government Granted Licenses and of course the Credit creation process! Our Economic Cycle Action Plan provides the framework to understand the cycle and the action we need to take to leverage the opportunities it presents to grow your wealth. By studying history, we can further enhance our knowledge of how events impact society and asset prices. Yet few seem to look back into the future an learn from the past. Learning from history and its relevance to life today is not  reserved for tweed jacket wearing types who love to contemplate history through a well-worn book. Studying history gives […] 150
By | 2018-09-21T13:13:34+00:00 August 12th, 2017|Cycles, Education, Wealth|0 Comments

Rise of the Nano House

RISE OF THE NANO HOUSE Moore’s Law states that computer processor speeds will double every two years, in a similar way Ricardo’s Law (of Rent) explains the continually diminishing size of Hong Kong apartments! The relentless technological advancements that are driving the rise of Nano Computers are also having the same effect on apartment sizes in Hong Kong. You see at $25,000 per m2 Hong Kong apartment space is not small change. It’s no wonder developers are doing their best to extract the maximum profit from their sites by shrinking apartment sizes and building sky high – the Cantillon Effect explains this. (To read about the Cantillon Effect click here). These Micro Flats or as I like to call them, Nano-Apartments, are typically as small as 20m2 and cost $500,000! They can be as small as 11m2 in size, but rent for A$660 per month on less than […] 150

“It’s Only a Few Grains of Rice….”

“IT’S ONLY A FEW GRAINS OF RICE…” Have you ever heard the story about the invention of the game of chess? Well the story goes something like this….. Once upon a time there was a very clever Indian mathematician who invented a board game that he called ‘Chess’. He took the game and showed it to the Emperor of India. The Emperor was so impressed with the game that he said to the inventor to name his price. The mathematician replied that all he wanted was a single grain of rice for the first square, two grains for the next square, four for the next, and eight for the next and so on for all sixty four squares on the board. The emperor chuckled to himself and immediately agreed; amazed that such a clever man would ask for so little. […] 150
By | 2018-09-21T13:22:22+00:00 July 14th, 2017|Education, Wealth|0 Comments

End of Year Tax Threats and Scams

END OF YEAR TAX THREATS AND SCAMS Please be advised that phone call scams are very common at tax time. If anyone calls you talking about rebates you are entitled to – they are scamming to get your bank details. If anyone calls making threats about ATO investigations claiming to be from the ATO legal department – its an extortion scam and they will try to tough talk you into making a payment to get a non existent tax case against you dropped. Its important to remember the ATO will never call demanding payments. They send out letters informing you of audits if applicable and if there was a mystery rebate you are entitled to your accountant should tell you about it. Never give bank details over the phone or your TFN. In both cases its nonsense, so if in doubt call […] 150
By | 2018-09-21T13:26:07+00:00 July 5th, 2017|Wealth|0 Comments

If Video Killed the Radio Star then Technology Killed the TV Idol…

IF VIDEO KILLED THE RADIO STAR THEN TECHNOLOGY KILLED THE TV IDOL… In 1979 the Buggles released their first Album aptly called “The Age of Plastic” which contained the cult hit song “Video Killed the Radio Star”. This song was a futuristic look back at an industry that was on the brink of collapse. You see Buggles, for all their zaniness, could correctly foresee the future long before most had woken up to the impact that technology was having in both their industry and society as a whole. Within 2 short years MTV hit our households and profoundly changed the music industry and society – just as the Buggles had foreseen. Those astute enough to see the changes were able to gain great benefit. Those who fought it lost. And those mothers who needed a social issue to worry about got what they were looking for, arguing and agonizing about 150

The Emotional Investor

THE EMOTIONAL INVESTOR Economics tell us that, or assumes, that individuals (which includes investors) act in a rational manner – that they are fully informed and make logical, sensible decisions. The news of Altair Asset Management returning investor funds at an “overvalued and dangerous time in this cycle” sent a quiver through the investment community. Has this ever been done before? A fund manager, who by definition makes his living by managing funds, emphatically saying to investors the market is cooked and I can’t manufacture any further returns for you. See: https://www.businessinsider.com.au/the-4-reasons-this-fund-manager-cashed-in-all-his-australian-shares-2017-6 Then this was followed up by the Australian Treasurer Scott Morrison terrifying markets with the dire warning of over Australia’s GDP growth forecasts. http://www.smh.com.au/federal-politics/political-news/treasurer-scott-morrison-sounds-warning-over-economic-growth-in-march-quarter-20170601-gwhud2.html And then the barrage of Doomsayers started warning us of a property crash, another recession, interest rate rises, the systemic issues […] 150

The 11 Year Old Drivers of Productivity

THE 11 YEAR OLD DRIVERS OF PRODUCTIVITY The world is a changing place – and those who don’t adapt will fall behind. We often talk about the resistance from the Luddites – unable and unwilling to adapt to the changing technology that revolutionised the cotton and woollen mills from 1811-1816. Eventually the Luddites battle proved fruitless and as always technology won the battle AND the WAR – revolutionising the productivity of the industry. It is no different today. The old guard -v- the new upstarts. UBER v the Taxi Industry. Airbnb v The Hotel Industry. If you look at the Economic Timetable, it explains why at the bottom of every cycle we can confidently say “Young people move to positions of prominence” They must; as the Crash wipes out the old inefficient businesses and it is the new thinking and more adaptive productive business solutions that creates the profitability that drives the new cycle. And yet still 150
By | 2018-09-21T13:40:19+00:00 March 30th, 2017|Property, Wealth|0 Comments

The Quackery of Economists!

THE QUACKERY OF ECONOMISTS!   There is an old saying “..if you lined up all the economists in the world you would have enough to reach the moon and back but not enough to reach a conclusion!” It astounds me how, as a profession, economists have such a woeful history of performance! I can think of no other industry that is so consistently wrong, yet is able to make excuses and explanations in hindsight that the public not only accept but continue to hold them in a position of prestige? Imagine if the same low standards were applied to Civil Engineers? Oh another bridge fell down!, well that’s Ok, we didn’t account for the overall span of the bridge. Or in Medicine? Woops we misdiagnosed your illness as we neglected to consider the need to take bloods… Yet economists use phrases like “Black Swan event” or “Too Big to Fail” to 150
By | 2018-09-21T13:42:03+00:00 March 25th, 2017|Cycles, Wealth|0 Comments

$20,000 Bonus to live in the country

$20,000 BONUS TO LIVE IN THE COUNTRY Did you see the Victorian government increased its first homeowners grant to $20K for regional buyers? Interesting! They also released over the weekend a waving of stamp duty for first home owners for properties under $600K which fazes out between $600-$750K. However as in the past, developers will just lift prices due to the extra demand. With the government telegraphing the changes, its very likely you will see developers lift the prices straight away for new properties. As always the price rises will be greater than the value of the grants, this always happens. This is simply because buyers now have an extra $20k which the banks will allow them to leverage against – that is if a 20% deposit is required, first home buyers can borrow another $80k + $20k, their new deposit, giving them in simple terms another $100,000 to spend. 150
By | 2018-09-21T13:51:36+00:00 March 7th, 2017|Cycles, Property, Wealth|0 Comments