As folks have begun to panic about how our economy will be impacted by the recent global crises, leading money experts have offered their thoughts on what’s likely to happen next.
Seeing as how I’m a simple Entertainment Editor with zero knowledge about the economy, I thought I’d pull together some advice that everyone’s favourite money man, Scott Pape, aka the Barefoot Investor, revealed on the radio this morning.
Speaking to Nova 96.9’s Fitzy & Wippa, Pape seemed pretty confident that we’re about to be hit with a recession which is just fabulous news.
“I think we are going into recession, we had the bushfires, now we have this global pandemic, it’s going to hit business confidence of course,” he said.
“We don’t know where interest rates are going to go – my worry is we’ve got record household debt, we’ve got some of the highest household debt in the world at a time when interest rates are at record low so when those rates start to come up that is where I think the real problem start for a lot of people.”
He added, “Maybe they borrowed too much money, or spent too much money on their homes, that’s when we’re gonna see some panic. But I’m glass half full, now is the time to get a low interest rate on your mortgage and pay off as much as you can.”
It’s not all hideous though! Addressing punters who are on the hunt for cheaper home loan rates, he likened the current climate to “Boxing Day sales”.
“I’m looking at petrol prices going down to a dollar at the bowser or thereabouts, I’m looking at the lowest interest rate on record and will get another cut next month,” he said. “You’ll be able to lock in the cheapest interest rates on your home loan ever and I’m looking at if you don’t need the dough in the next 10 years. This is your boxing day sales, the shares are lower. So if you’re saving for a deposit and you don’t need that money for 10 years, the sharemarket isn’t the place bit I’ve always said that.”
He went on to say that he reckons the person most “freaked out about the sharemarket” more than “anyone else in the whole world” is Donald Trump.
“He claimed it was on the way up and now he’s got one on the way down. I think he’s in a world of trouble right now,” he said.
Tune in to Scott’s show Road to Recovery tomorrow night at 8.30pm on the Lifestyle Channel for more intel from the Barefoot Investor.
