The biggest news in business at the moment (not to mention every dinner table in the country) is, of course, the crash of the US stock market and what it means to us and how it will effect our economy.

 

It is not difficult to be swept up in the tidal wave of fear that is being worked up by fear mongers and doomsday economists, just open any newspaper or turn on the tv for five minutes before you here someone preaching about an impending recession. Hogwash!

 

The important message to remember here is that in the scheme of our long term investments, volatility in the market place should not be so shocking! If you think about it, the average home loan spans over a 30yr period, do we really think that over that 30yr period the market is not going to experience some ups and downs? So why the panic now? There is no doubting that our economy has taken a knock on affect of sorts, but it is how people react in these times that will sort the brave out from the weak, and I can tell you that it’s those that do not panic who will ultimately end up on top.

 

History and trends reveal that after a slump in the market, the only place for the market to move to is recovery and rise, those withdrawing from the market now and selling off all of there assets are very likely to miss the bounce back effect and suffer for their actions.

 

Buying and selling of businesses are no exception. Those caught up in the panic and making rash decisions could land themselves into trouble come market recovery. Those who keep their heads and carry on business as usual will survive the crash and end up leading the pack.

 

Another very important fact to point out is the fact that the Sunshine Coasts position in the economy is slightly more insulated than other areas in Australia. We live in an area in SE Queensland that is experiencing rapid growth and is considered a highly favourable place to live and work. You only need to take a look in the property week business section to see local business brokers advertising the fact that we have actually had record breaking business sales for this financial year! Not to mention the ever increasing amount of top businesses being bought and sold every week with people travelling from all over Australia to snap up a local gem.

 

The best thing that we can do now is carry on as normal.  As I said, it is those that stand strong and do not panic are the ones who will end up on top.