Friday, 3 June 2011

On becoming a rational investor (Part 7 of 9)

Economists speculate all the time about next year's rates of unemployment, inflation or deflation. For your personal investment decisions, you don't need to wait until the exact figure is known. On most occasions, knowing the general trend is enough to make rational investment choices.

If newspapers are discussing whether next year's inflation is going to be 6% or 7%, that tells you as much as you need to know. Take swift action and reflect about how to structure your finances to deal with such price increases.

Worrying is essentially a waste of time. Although you cannot reshape the world according to your taste, nothing prevents you from taking measures to minimize trouble.

To be continued in the next post.


[Image by Fr Antunes under Creative Commons Attribution License. See the license terms under]