We have heard on the news how the current global financial turmoil is affecting the financial markets and banks, and how the problems will eventually trickle down to the laymen, if not already as seen recently in the layoffs by Ford Australia.
The news headlines shout how pensioners are affected by the plunging values of their superannuation funds, how businesses will have to layoff workers due to falling demands and credit tightening, and without escaping, the fall in property values.
But for Davenports our concern is – what it is really like on the ground? How are our clients affected? Without hesitation, over the week, the staff spoke to clients; individuals, businesses and seniors, on how the financial turmoil has affected them.
And the results from the conversations revealed a surprisingly mixed bag.
On the business front some were actually rejoicing taking the opportunities in the downturn to improve their business while some were already hatching plans to layoff workers, an expected response during such times. But on the agricultural side the major concern is the increase in costs of chemicals, feeds and fertilisers.
For individuals, those with exposure to the stock markets err on the side of concern as their net worth plunged with the indices, with some scrambling for assistance from financial advisers.
Those who trade stocks professionally view the situation as a good time to load up discounted shares trading below their fundamental values, expecting the markets to improve eventually. On the other hand, individuals who are salary-earners are generally aware of the situation, and some don’t see how they would be affected directly.
Finally the seniors, from a superannuation point of view, are more affected by the stock market dive, as their pensions will see some reductions or those who are planning their retirement might have to push that date further ahead. One admitted to a panic attack and there are some who just don’t care about the situation at all.
From these casual conversations we can see that the current financial problems are having a mixed effect on the people on the ground. Perhaps as one Davenports‘ manager said during the meeting discussing the result, “We are still in the early days…”
But our response has already started. Our strategic alliance with a firm of investment advisers is being triggered so that our clients might have a free consultation to review their portfolios.
We have heard on the news how the current global financial turmoil is affecting the financial markets and banks, and how the problems will eventually trickle down to the laymen, if not already as seen recently in the layoffs by Ford Australia.
The news headlines shout how pensioners are affected by the plunging values of their superannuation funds, how businesses will have to layoff workers due to falling demands and credit tightening, and without escaping, the fall in property values.
But for Davenports our concern is – what it is really like on the ground? How are our clients affected? Without hesitation, over the week, the staff spoke to clients; individuals, businesses and seniors, on how the financial turmoil has affected them.
And the results from the conversations revealed a surprisingly mixed bag.
On the business front some were actually rejoicing taking the opportunities in the downturn to improve their business while some were already hatching plans to layoff workers, an expected response during such times. But on the agricultural side the major concern is the increase in costs of chemicals, feeds and fertilisers.
For individuals, those with exposure to the stock markets err on the side of concern as their net worth plunged with the indices, with some scrambling for assistance from financial advisers.
Those who trade stocks professionally view the situation as a good time to load up discounted shares trading below their fundamental values, expecting the markets to improve eventually. On the other hand, individuals who are salary-earners are generally aware of the situation, and some don’t see how they would be affected directly.
Finally the seniors, from a superannuation point of view, are more affected by the stock market dive, as their pensions will see some reductions or those who are planning their retirement might have to push that date further ahead. One admitted to a panic attack and there are some who just don’t care about the situation at all.
From these casual conversations we can see that the current financial problems are having a mixed effect on the people on the ground. Perhaps as one Davenports‘ manager said during the meeting discussing the result, “We are still in the early days…”
But our response has already started. Our strategic alliance with a firm of investment advisers is being triggered so that our clients might have a free consultation to review their portfolios.
Posted in Commentary | Tags: Credit Crunch, Economy, Superannuation