#040 Your Guide To The Economic Clock and Where are we now?

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Manage episode 222540017 series 2176573
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Welcome back to another episode of the How To Raise Money Podcast, with your host Ray Mclennon. In this episode, Ray talks through the Economic clock, its history, and how it can help you in your business or property venture. Ray talks through why a rise in interest rates is a good thing, and finally lets you know where we are on the clock between boom and bust? Key Takeaways What Is the Economic Clock? The economic clock is a 150 year old indicator of the state of the economy built by economists after they noticed patterns in the movement of the economy. It indicates the cycle of the economy as it moves from boom to bust. Each hour on the clock indicates a stage in the process, and what you will see in the economy in each process. No one, however, can tell the timing of when these things will change from one hour to another. It is all Emotional. Media, and other sources drive people's emotions, such as Brexit which then leads to actions. However, people act in logical ways which can be seen in over 100 years worth of economic data. No one can, however, tell the timing of boom and bust. Interest rate rises are a good thing. This means that the economy is on the up. The next interest rate rise will be in eight months time. There is an uncertainty with Brexit and then the Bank of England are probably going to put up interest rates which means the economy is in a strong position. Ripple Effect. The property market is expanding out of London, to places like Hull and Liverpool where there is seemingly more value. These patterns have been seen in history looking back to the 1880’s. Trickle Down Effect. If you look at consumer spending compared with age. Baby boom effect is an important factor here due to the population boom in that generation which moves over time as a cohort effect. Whilst there are cycles to boom and bust, things like the baby boomers factor are an important intervention which should be bear in mind when using the economic clock. Undervalued Assets. This can describe things like stocks and shares that are not valued as highly as they should be. There is a cycle of investment in assets through from first takers, through institutional investors to the wider public. Other undervalued assets in terms of property could be empty shops, or pubs or derelict buildings. You want to be actively looking for undervalued assets and adding value to these properties and make some money. Where Are We Now? Ray talks through where Economists think we are on the Economic clock at the minute. They think we are at 8.30pm on the economic clock, which means that commodity prices are going to rise further, there will be easier money such as crowdfunding and there are a lot of deals that have to go through. Best Moments ‘Be sure of what the stages of the economic clock are’ ‘The Economic Clock, A guide to boom and bust .’ ‘Supply and demand is Economics 101.’ ‘Emotions are neither good or bad, but expressing them can create good or bad consequences.’ ‘‘The ability to read the markets is crucial.’ ‘Interest rate rises Is a good thing.’ ‘They think we are at 8.30pm on the economic clock.’ ABOUT THE HOST Ray McLennan is the best advisor there could be on matters on why deals fail to close and he'll give you advice on what you should do in order to close all of your deals and believe me when I say that you will go home as a happy client after his advice. CONTACT METHOD Website (https://westrycapital.co.uk) Website (https://becomeanangel.com) Send in a voice message: https://anchor.fm/HTRM/message

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