Read? Bull, Bear and The Pyramid
"Bulls climb up a wall of worry, bears slide down in a slope of hope ."
Why worry? I am prepared for both Bull and Bear. I believe I have invested enough in stocks to run with the Bull and reserve cash to slide with the Bear.
Yes, good to prepare for all possible scenarios.
ReplyDeleteLady fortune favours the WELL prepared.
Unfortunately, come Q1 2011, I have a hunch Italy will cave in while Spain is any one's guess. If can give Greece 50% discount for debt, surely all those who borrow from Ah Long also want the same. I hope I am wrong but each time I see the Italian president with the smirk as he walks into each meeting, I feel uneasy. Contrast to the sombre mood of the German Counsellor.
I may be wrong, it may not be Q1 2011 but it will come sooner or later.
Yes, nothing in life is 100% sure. We always need to hedge our investments so that head or tail, we still will win. Albeit, a lesser amount then if you are right all the way in taking one side of the bet only. If you are wrong-Kaput then?
ReplyDeleteAnother words risk management and assets allotment will keep you in the game of investments. Rather all or nothing, just like in the Casino.
Sorry I mean Q1 2012....the mention of that time makes my fingers shudder
ReplyDeleteTwo things in life 100% will come...
ReplyDeleteOne is taxes and the other is for someone to return our IC.
Hedge means if market goes up, you sell slowly and vice versa for stock investments. Always hedge for nobody really can predict the market. The same goes with real estate investment if you hold more 2 or more salable properties. Basically you want to win head or tail.
ReplyDeleteSometime, it is good to pay taxes as it is telling us that we are still earning well. The problem is that people forgot to set a side that taxes and marked them as non-spendable.
ReplyDelete