Burkhard Varnholt: "Economic expansions are like a marathon"
Find out how long this good time for investments is going to last.
There is a popular belief that any period of economic expansion is followed by bad years.
Australia is one of the examples showing that this idea is a misconception. The country has just celebrated its 28th anniversary of economic expansion.
Expansions should be compared to running a marathon, instead of being associated with the fatalistic idea of good times mingling with bad times. The secret underlying the success in both is keeping a steady pace.
The key takeaways from the video:
- The current expansion started in 2009 after a deep recession and it started very slowly and picked up in the last 18 months.
- There are still no signs of the investment cycle overheating and the expansion is very steady.
- Consumers would continue shopping at the same pace as they remain well funded.
- We can expect the current global expansion to last until 2019 or even 2020.