Written by Condon Associates on 28 June 2010

Well it has been some time since I last took the opportunity to update our blog, but like many of us a number of things just got on top of the situation. So as we come to the end of the financial year we can get to revisit our wounds and/or count our baubles, so I thought it only appropriate that I take the opportunity to say a few things before the year disappears from under me.

In April of 2009 when presenting to a gathering of CBA Bank customers I had suggested that the fall was not going to be as great as anticipated. Alas there was not at that time a lot of support in the room for my projection. As we leave the year we are now beginning to see a little more chest beating as to how Australia has survived the crisis. We are proud of how we have over almost every other country survived the GFC.

One does however still repeatedly come across those in business that are not as confident and there are certainly many in the retail trade that are genuinely feeling the extended pinch. We must be careful of what is to come.

As I have indicated before there is still a desire to increase interest rates to control inflation. Rudimentary costs for necessities continue to rise and the general spender remains cautious. All of this presents well for a difficult future if not managed correctly.

Moving into the New Year we are sure of one thing – that within the first 10 months we will have an election. The closer it comes the more cautious people will become, either in the belief that things will be better under the next regime or the other chestnut, the new regime will bring a pot of gold that will fix all my ills (instantly).

There is a significant level of national debt that is running up a significant level of interest. Spenders will most likely remain cautious and we will move more slowly. As you move into the New Year plan carefully and ensure that there is a healthy level of contingency built in.

We can survive if we are prepared but are unlikely to do so if not.

2010-2011 will be better so on a positive note may I simply wish everyone a Happy New Financial Year for Thursday!

PS: At least the EOFS add will be gone!