Money Matters: Financial Advice for 2010

By Jason Hurst

Before we begin, a moment of reflection: 2009 was the year of opportunities that rarely present themselves. At the end of 2008 the markets were a mess. If you had stuck to the sound plan of building capital, protecting it, knowing your timelines and, most importantly, maintaining discipline, the world markets would have played right into your hands. History shows that world markets rebounded after 1987, after the IT bubble burst in the early 2000s, after 9/11, and again after the Subprime crash of 2008.

All those who forgot the basics and jumped on the negative bandwagon clearly did not receive the right advice. You always have a choice, regardless of market conditions: your glass is either half-empty or half-full. For me 2009 was half-full, and 2010 should also be another good year for those who cherish good investment opportunities. This year I will be keeping you updated via this monthly Q&A page, so feel free to contribute questions for discussion.

Most important of all, let's keep our glasses half-full and progress through 2010 with a smile on our faces!

q & a

With the benefit of hindsight, just how bad was 2009?

If you were an investor who made bad investments by forgetting the basics, and did not use investments that benefit from falling markets, then it was a horrible year for you. If you were one of the few who remembered these ideas, then I am sure you will still have a big smile on your face. When there is a BULL market, most people prefer to forget about the BEAR market that preceded it.

Has the economy truly started to recover, or is what we're seeing now just a false dawn?

This is a hard one to call. While things are moving forward, they could turn sour at any time. You need to keep disciplined savings habits in mind now more than ever. There are two main options:

1. SAVING INTO THE BRICS / Emerging Markets on a monthly basis. These markets forged ahead in 2009, and will more than likely continue to do so in 2010. If they don't, and they fall like a rock, then this is still in your best interests because you will be buying into funds at lower unit prices each month. You win both ways if you are thinking 10 or more years down the road.

2. PROTECT YOUR CAPITAL. Use alternative investments which are uncorrelated with global stock/bond markets for the short-term (one to two years) and mid-term (three to nine years). The key here is to understand how many years you can park your cash.

What about Japan's place in the global economy of 2010?

Japan's place in the world economy in 2010 will basically remain the same as it has been since the mid-1990s asset-inflated bubble. Japan has been depressed for so long that the 2008 Subprime crash barely sidetracked its economy. Moreover, people always look for other currencies to run to in times of need, and in this case the yen was that currency. However, Japan cannot take a strong yen for long since it is an export-driven country and needs the yen to weaken so that its products remain competitive overseas. Japan needs more free thinking in its political ranks, as the old style of thinking is clearly the wrong way to succeed.

What should savers and investors be keeping in mind during this calendar year?

BUILD YOUR CAPITAL, PROTECT IT, KNOW YOUR TIMELINES, and MAINTAIN DISCIPLINE.

What are some of the best financial opportunities presenting themselves right now?

We have to think about what asset prices will drop when the markets really recover. Once there is confidence back in the world markets people will run away from gold, which skyrocketed in 2009. One idea is to make great returns from falling gold prices.

Jason Hurst is Director of Operations at International Solution Group. To ask him a question for him to address in next month's Money Matters Q&A, please email.

For any other inquiries, please email or call 090-8642-6775

kansai event, feb. 25th: techniques for dealing with today's changing economy

Date/location: 18:30-21:00, Thurs. February 25th @ ANA Crowne Plaza Hotel Osaka

Price: 4,000 (ICA members: 3,000), including buffet dinner with one free drink served before the presentation.

RSVP: by 17:00, February 24th - visit www.isgjapan.com/events.cfm

More info: email

ISG Japan's Jason Hurst and Peter Schuetz will be speaking in their capacity as Wealth Counselors, offering invaluable advice on matters such as protection of assets, specific wealth-building concepts and models, and much more.

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