25/02/2009

“Given the underlying strengths of the economy, about the biggest mistake we could make would be to talk ourselves into unnecessary economic weakness” said the Governor of the Reserve Bank of Australia, Glen Stevens.

We couldn’t agree more.  So instead of focusing on plenty of bad news on GFC out there, we at Townsends Business & Corporate Lawyers are determined to stay positive.  

We’ve seen plenty of good news stories this month.

OECD says that Australia’s in good shape

An OECD Economic Outlook report found the key economic performance indicators for the coming years should be relatively positive.  The report projected a rise in Australia’s GDP growth from next year’s projected 1.75 per cent to 2.75 per cent in coming years.  Inflation is expected to fall below 3 per cent in 2010.

Fund managers have the right attitude

According to a recently conducted survey, Australian fund managers are defying market gloom with 54 per cent of managers feeling bullish towards Australian equities, compared to only 13 per cent of managers feeling the same way about Australian cash.  The research also showed that although Australia was heading for an economic slowdown, managers were looking for opportunities and prepared to take more risks.

We are actually doing pretty good

Compared to this time around in 2008 and 2007, TBCL are actually seeing an increase in the number of file opening this year in January and February so far.  We are not feeling the downturn as much as the media describe it.  We recently had an internal staff conference and presentations during which we discussed our strategy to combat the slowdown.  We think we’ve got ourselves well prepared for the time ahead and are confident about our approach. 

JB Hi-Fi are hitting hi fives

JB Hi-Fi’s sales grew by a staggering 28 per cent for the full year.  Their CEO said "we have one of the strongest balance sheets of any listed retailer and the capacity to take advantage of any opportunities that might present themselves."  For JB, shoppers are crossing their door more than they did a year ago and their spending hasn’t decreased at all.  He said the trick is in selling the right products such as notebook computers, flat-panel TVs, games and music while keeping prices low. 

Finally, some quotes of inspiration

“I haven’t the faintest idea as to whether stocks will be higher or lower a month or a year from now.  What is likely, is the market will move higher, perhaps substantially, long before sentiment or the economy turns up.  So if you wait for the robins, spring will be over.” - Warren Buffet

"Those with market experience know this is the right time to be looking for opportunities.  It is the time to regenerate and move forward with confidence," - Rupert Murdoch.