KEY POINTS:
How has the credit crunch changed your world?
Investment markets have changed, investor attitudes have changed, and the implications of the new world that we have entered into will have implications for how we will invest in the future.
Life is going to remain difficult for companies or individuals who require debt. Quality businesses that have a competitive strength and a proven ability to grow profits will be increasingly sought after, and investors will continue to seek investments that are transparent, proven, and offered by parties who can be trusted.
How serious is the current downturn in a historical context?
It has been serious, and there are some parallels with the 1970s oil crisis and the 1930s Great Depression. Many commentators are speculating whether we are about to live through another depression.
As far as the share market is concerned, we already have (which hopefully gives us reason for optimism that we are in a bottoming phase).
What helps you put it in perspective and stay positive?
Experience helps. I am old enough to have lived through market and economic downturns and have been fortunate to experience the upturns that inevitably follow. I am also young enough to have a sense of optimism about the future, so I do not find it difficult to stay positive.
