The ramblings of our Chief Executive before a Board meeting...

Dear Reader,

I'm off to a Board meeting shortly. But... I promised Adrian I would write a newsletter this week and time is short. The quickest thing I can do is ramble - I'm good at that. So, if you don't like to listen to the ramblings of a collectibles nut then turn away now...

My number 1 philosophy on life which helps give me a sense of perspective (and helps me sleep at night) is:

"Things never stay the same. So, when things are bad, take comfort in the fact that things will change and it will get better. Likewise, cherish the good times more in the knowledge they won't last."

If nothing else, whilst you are losing money on the stock market and your property, take comfort in my philosophy.

You see, the world lives in cycles. Mystical forces do not drive prices of assets, the success of economies and the success of businesses. They are driven by people like you and me. We are all in some way responsible for the events which unfold around us. The investment terminology used for this is "sentiment".

What we are living through right now is a period of negative sentiment. This is what is causing your shares to crash in value and your property to remain on the market indefinitely without selling. We are all making it happen.

You can blame the government, the media, or the banks if you like. All they do is create catalysts to enact inevitable sentiment changes. The bottom-line - we are to blame, human nature specifically is to blame...

Going back to my life philosophy....

Why do things never stay the same? Why do good times have to end and why do we always recover from the bad times?

The answer is - human beings need, above all else, stimulation - we get bored. Think about it...

Remember the beginning of the UK property market boom in the late 90s. It was interesting wasn't it? The most common topic of conversation at dinner parties: "How much my house is worth now!"

This type of blind confidence entranced us and we wanted to be part of it. The nation became positive and believed in rising prices. People even gave up their jobs believing that they could live indefinitely simply from buying properties on money given out like candy by the banks and then rent them out to the growing number of people priced out of the property ladder.

Banks believed in giving credit (sadly, as always, they got greedy here - the ugly face of capitalism naturally manifests itself in the banking world) and businesses believed in taking risk and growing their business.

As a result, the good times rolled and we all believed it would last forever. But, then as the years passed by and all was going well we got bored. The doom-mongers, always the first to raise their heads, started warning of the end of the boom and illustrating all the risks that would cause the eventual downfall.

To begin with, we listen with interest but the good times are still fun and why can't we live of borrowed money forever... The world is practically intangible these days anyway isn't it?

But the boredom sets in more and more. And then we get a catalyst...

The banking boom collapses...

Just the moment we have been waiting for, change at last. The wheels are set in motion. People with a natural negative disposition are first to react. Market prices begin to fall. Then the media and governments give us the fuel to generate mass negativity.

So what do we do now? We are all miserable and see doom and gloom ahead. Businesses decide to take a more cautious approach. The banking game is up - no longer can they lend to people who can't afford it. And little old you and me, we stop spending so much, sell assets and generally just create chaos.

People start talking about how bad it can get to near apocalyptic proportions. Our actions damage what were perfectly good businesses by our negativity and lack of belief in anything good about the world.

Now that's where we are right now.

So we know what's next don't we? This will continue for a while. Then the doom and gloom stories will get boring and we will stop listening. We will get sick of losing money and decide its time to do something about it.

Then we will fight back. Banks will find a new creative way to create "paper" profits and earn big bonuses. Businesses will see value everywhere they turn and start taking risks again. Consumers will decide they still want the latest gadget. Homeowners will decide they want a better home and what better time to do it than when prices are rock bottom.

Ultimately, the initial "fight back" will feed into another period of confidence and a belief that it will last forever. Asset prices will rise again, consumer spending will explode and the happy days will return.

So if you are miserable about the current state of the economy, the value of your house, losing your job or the collapse in your stockmarket investments...

Don't worry, all you need to do is wait. Human nature will ensure that the good times will return.

But the more positive you are the more likely you will buy into the cheap assets at the lowest levels.

Now you might be asking yourself what this has to do with our usual subject - stamps and autographs...

To be honest this has nothing to do with the products we sell. Our customers are different. They are always positive about their collection. If anything, they need it more in miserable times like this.

So, we are lucky here at Stanley Gibbons. All this negativity surrounding us, and we are still selling our products.

Add to that the fact that terrorised investors are wise to diversify their wealth into products like ours at times like this and we are in a strong position to ride out the storm.

As I said, I am not selling you anything here. I just felt like "spewing" some random thoughts which hopefully some of you will find thought provoking.

But, I would feel odd if I did not finish with a sales pitch, so here goes...

Are you one of the many investors sitting on assets which are going down in value on a daily basis?

Rather than sit there like a lemming, would you like to do something about it and make some money instead during this horrible time?

If so, you need to contact our investment director, Adrian Roose today:

+44 (0) 1481 708 277
email investment@stanleygibbons.co.uk
TOLL FREE from the USA 1 866 644 6146

He knows what he's talking about. He has helped many others in this turbulent period in economic history and he can help you too.

Sincerely,

Mike Hall
Chief Executive
The Stanley Gibbons Group