If a recession produces one positive result it is probably that investors right across the spectrum become more discerning in their investment decisions. This is certainly not a bad thing but is having the effect of flattening out activity across many sectors.

With dairy farming for example, sales have fallen away with some industry players unfairly, in my opinion, blaming banks for not lending. The banks have hit back saying that they are still more than willing to lend, but that what they are seeing is prospective purchasers walking away from deals that don't stack up. As recently as 18 months ago, the same investors would have been doing the deal if, for no other reason, as rising land values have historically underpinned the dairying operation. That no longer appears to be the case.
Again, even government bond issues; once viewed as almost risk-free, are now being viewed more cautiously globally as the debts of most western countries continue to rise inexorably. Just recently in the United States, investors worried about the government's ability to deal with a mounting deficit moved up the yield on 10 year bonds from 3.65 per cent to 3.9 per cent.
It is therefore hardly surprising that commercial property investors are still being wary when it comes to new investments. A recent auction of some good property in Devonport Road failed to achieve any sales at auction. Barely there three years ago I suspect that you would have been trampled in the rush to secure such properties.
As always, those people who believe that good times are going to last forever are as misguided as those who believe that the same is true for the bad times. There are still good investment opportunities out there, but they are having to pass more stringent tests. As I said, not a bad thing.
Until next time, have a great week.