Investors uneasy…hmmmm…Ya THINK?!?!
How's the market doing?
I have to apologize that I haven’t had a lot of interaction over the last couple of months. I’ve been busy to say the least.
Been talking with some really bright minds in personal finance, and have been pouring over the news and reality of what is happening in the markets right now due to mismanagement of economies around the world, safeties for investors, smart investing, and of course not so smart investing.
I can’t tell you the shock I am feeling when I see how even after the most successful people have said how things should go, the rest of the public doesn’t listen and they continue to do the stupid things that only hurt the economy more. Poor investing strategies, uninformed investing,(emotional directed by media) or just plain sitting. (this isn’t good either)
No action is worse than bad action. Don’t be one of those that sits in the corner and choose to let the big boys fight it out for you…it’s not going to happen. You have to get out there and make it happen through your own proper research. Don’t count on the media which is biased on their own opinions and “sponsored” opinions. I truly wish media wasn’t owned by big dogs…it only gives them a means to manipulate the market the way they want to.
What are you investing in?
Now the article I am linking to shows even the big boys are “short selling” through their funds. This is a tell tale sign that they know how to make money in a bull market. There are systems out there that can help you to profit even in thee midst of what is going on in the market. You have to do some work thought so you can feel it out, and then make an educated decision. Do not, sit still, do something.
If you are an entrepreneur, you need to make sure your business investments are solid. Don’t guess. Do something.
Teddy Rooselvelt said, “Try something. If it doesn’t work try something else. But try something.” You need to do the same.
Bottom line, you need to see what information is really good, and then act on it. If you have nothing invested just yet, start to look at what you can do to start. Even if it is a small life insurance policy, and small IRA, a self directed one. Do something.
Don’t leave it to chance, research quickly enough and then act…Do Something.
Mike,
FDR is one of my least favorite Presidents and no one tried to ruin capitalism and democracy more than he did. He's the Socialist every American socialist, including President Obama, aspires to. However, his quote does have a lot of truth in it. The problem was the US government tried then and is still trying now to “do something” using Keynesian macroeconomics!
The defenders of Keynesian macro, and there are some out there still, do not understand the problems and consequences of a government trying to use it for many decades now to prevent recessions.
What a free market economist or Austrian school economist will tell you is that recessions every few yrs are a good thing. They allow the markets to clear themselves of bad investments and allow the savers and companies looking to grow to buy the good assets of companies going out of business for pennies.
Failure, bankruptcies and recessions are part of capitalism. Everyone cannot succeed for capitalism to work. But, capitalism allows technology and society and a higher standard of living to progress. The problem is we don't have anything close to capitalism and free markets anymore with very few exceptions now. Most of the big corporations lobby Congress and get their losses socialized and their profits privatized.
Entrepreneurship is getting harder every year to achieve because of new laws and regulations. Instead of protecting people, these laws tend to have the opposite effect. The offenders, the big corporations no longer face challenges by the little guys looking to enter a market. Regulations are costly with and create tremendous barriers of entry and reduce competition. Has cigarette taxes and regulations reduced smoking in this country? Nope! All of this excise taxes are just passed along to the consumer. The large cigarette companies still continue to produce quarter after quarter of record profits and now they have basically no competition.
One of the first lessons you learn in Austrian economics, and this is stressed in Henry Hazlitt's book, Economics in One Lesson, is that government interference and regulation into any market will ALWAYS have unintended consequences. Often, these consequences produce results that are the exact opposite of what government intended and will cause severe long term hardship unless the government stops interfering in the market.
If you are an investor, a businessman or an entrepreneur, and you are sitting on a lot of cash and it's denominated only in US Dollars, Euro, Yen or Pounds, you are in trouble!
You need to have cash reserves in creditor nation foreign currencies (which are being devalued/debased/inflated also as well as hold some physical precious metals such as gold and silver to preserve purchasing power. “Cash is king” is no longer true when governments are competitively debasing their currencies as they are now.
In fact, I'd agree with Robert Kiyosaki that “cash is trash.” No paper, fiat currency will hold its value for the longer term when politicians and central bankers have a policy to print more of it at will. People do not think of money as a commodity, but it is.
Money is governed by the same laws of supply and demand as pretty much everything else on this planet is. When you oversupply the market with say dollars, you make each dollar already out in circulation worth less and less until one day it becomes worthless… That's why central bankers and politicians hate gold. It keeps most of their games in check because it can limit their spending and money printing. It's no coincidence that every paper, fiat currency backed by nothing has gone to its intrinsic value of ZERO. Governments aren't the ones hurt by this either. Savers, investors and its citizens are. Inflation is government policy pure and simple. It's a tax.
For more on this please checkout my blog at http://www.jasonburack.com and specifically read my Silver Savings Account article at: http://www.jasonburack.com/investing-ideas/silv...
Also, checkout the Wall St for Main St Facebook fanpage!