If there's one thing investors can be sure of, it's that every day, somewhere in the world, there are problems. But even if future market upsets are a virtual certainty, Australia always has some advantages to consider.
1) Geographically, we're very safe.
Warren Buffett famously began his investing journey during World War 2 – right after Pearl Harbour in fact – a time when America's future didn't look very glossy. America was in a great position then thanks to its isolation and global demand for its goods, and Australia enjoys many of the same advantages today.
Investors can capitalise on this by owning shares that are distinctively Australian, like the newly formed Scentre Group Ltd (ASX: SCG), or Cromwell Group (ASX: CMW). Two purely ANZ property trusts with high yields and modest growth potential – not to mention the security of land ownership.
2) Australia is in a great position economically.
Australia's economy is in really great shape thanks to our natural resources, strong financial system and rapidly growing trade partners in Asia. Share values might fall, but the reasons to own those shares don't just go up in smoke.
For those who are concerned about the tensions in Europe, I would again recommend owning shares with a tangible underlying product to give security to your investment.
In addition to the above property trusts, investors should consider owning shares in Australian resource companies like Beach Energy Limited (ASX: BPT), Graincorp Ltd (ASX: GNC), or BHP Billiton Limited (ASX: BHP). Oil, grain and metals are always in demand and shareholders can enjoy the surety of a constant cash flow and guaranteed demand for these companies' products.
3) Shares get cheaper when the markets get nervous.
This one's pretty straightforward – if you could buy an attractive share at a lower price, why wouldn't you?
The exceptions to this rule are Australia's banks – with heavy international exposure, they are more exposed to movements in international markets, and owning them during international crises is risky. Even then, they're likely to be getting cheaper without huge changes to their fundamentals.
At The Motley Fool we like to follow Buffett's investing tenets, buying companies that are easy to understand with great cash flows, strong business models and at a great price.
That's why we're offering you a free report on two shares Warren Buffett would love, and hopefully giving you a little push further down the road to financial independence.
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