The economy, investing and the property cycle

Jules Willcocks talks to Jeremy Calnan about financial wellness, the basic concepts of economy and the psychology behind investing.

 

Summary Writer:  Laura Parks

Script Writer:  Jules Willcocks

Editors:  Jules Willcocks and Jeremy Calnan

Interviewee:  Jeremy Calnan

Interviewer:  Jules Willcocks

 

About Jeremy Calnan

Jeremy Calnan has worked in the financial markets and traded and invested for himself since the early 1990s. Jeremy was first licensed to provide financial advice in 2000 and then established his own Financial Advice Business in 2001.

He has extensive capital markets experience spanning research, strategy, structuring portfolios, asset allocation and management, risk management and trade execution across a range of asset classes.

Together with business partner Ian Flack, they established Calnan Flack in 2013.

He is a member of the Calnan Flack Investment Committee and holds the responsibility of being the Investment Portfolio Manager for the Calnan Flack Model Portfolios.

He has a unique take on the economic world and investing that is underpinned by his understanding of economic history and the cycles and events that define it.

Jeremy is an innovator, challenging the accepted investment landscape.

He is a knowledgeable presenter and highly effective educator. Currently, he authors the Calnan Flack Blogs, hosts the podcast “Property, Australia’s Favourite Obsession” and the Calnan Flack “Insights” series as well as presenting at many Calnan Flack events and seminars, including the Calnan Flack Forecasting Conference.

Jeremy lives in Adelaide with his wife Alice and spends his spare time watching his two sons play AFL football or just relaxing with family and friends.

 

About Dr Jules Willcocks

Jules Willcocks is an Emergency Medicine Consultant and the Director of Prevocational Education and Training at Gosford Hospital.

His interest is in bringing out the best in people principally through mentoring and coaching. He firmly believes that wellbeing is a crucial part of this and that you cannot look after someone to the best of your abilities if you yourself are not well.

He trained as an executive coach and has a particular interest in financial wellness for doctors.

 

The economy, investing and the property cycle

With Dr Jules Willcocks and Jeremy Calnan, founding Director and investment portfolio Manager of Calnan Flack, New South Wales, Australia

 

Introduction

Despite financial wellness being an essential part of our lives, doctors get minimal financial education throughout their training, or have limited time to dedicate to self-education about finances. Understanding the basic concepts of economy, the psychology behind investing, and finding trustworthy financial experts for advice can make investing and setting financial goals easier.

  • It may be psychologically challenging
    • There are a lot of competing thoughts that go through your mind (e.g. different ways you can spend your money)
    • Investing can be challenging mentally when it goes or doesn’t go well or according to your expectations
    • The world does not work in a linear fashion even though we like to think so – as such, it is hard to continue down a particular pathway when you don’t have the outcome you want
  • There are a lot of vested interests
    • Always getting competing views that challenge what you are doing
    • There are a lot of different forms of advice and ways to invest
  • Understanding how “the effortless advantage” or “the economic rent” works
    • The “free uplift” you get with investment (e.g. value of properties increasing over time)
    • Uplift in values that occurs without any effort (e.g. financial assets such as shares)
  • Understanding how the 5 drivers of our economy (technology, infrastructure, population, credit, government-granted licenses) allow productive gains
  • Understanding the cyclical nature of our economy
    • The underlying 5 drivers of our economy will always be the same, but no cycle will ever be the same as the 5 drivers will manifest differently
  • Understanding the 3 factors of production (land, labour, capital)
  • Educate yourself about the basic principles of economy and investing – especially “the effortless advantage” and “economic rent”
  • If you understand the drivers behind our economy, you will feel much more comfortable making financial goals and investment decisions
  • The world works in a cyclical matter; similarly, the economy and property work in cycles with the same 5 drivers that manifest differently each time
  • You don’t have to do everything on your own – find trustworthy sources for financial advice!
  • Anderson, P. The Secret Life of Real Estate and Banking. 2008. Shepheard-Walwyn (Publishers) Ltd.
  • Harrison, F. The Power in the Land. 1983. Shepheard-Walwyn (Publishers) Ltd.
  • Calnan Flack Methodology – https://calnanflack.com/methodology/

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Tags: #economy,#financial education,#financial health,#financial wellbeing,#goal setting,#investing,#property

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1 Comment

  1. Shelly Cook

    July 7, 2021 at 10:16 pm

    Enlightening.

    Reply

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