Economic problems are similar to the influenza virus that marks the arrival of winter every year. Exaggerated concern seldom improves anything. Instead, individuals should identify the path that minimizes trouble and, if possible, find ways to profit from it.
you hear that inflation or deflation are coming, ask yourself how you
can structure your finances in order to benefit from the situation. Can
you link your income to a product whose price is likely to increase or
decrease at the same pace as the overall economy? Can you reduce the
amount of cash that you require to live and invest the remainder in
assets that will profit from upcoming economic changes?
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.
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.
Discard stress, anxiety, and depression, learn to
face problems in the best possible way, and become a rational investor.
Your financial and philosophical sharpness will grow together. Your
personal effectiveness will increase and you will become more tolerant
Stop worrying, take action, and start making
money. Never place all your savings on a single investment. If you
acquire the habit of diversifying your investments amongst different
types of assets, chances are that you will be much less troubled. If you
purchase shares of solid companies around the world, your portfolio
will tend to be less affected by problems in specific countries.
to deal with the world's problems is a better approach than being
paralysed by them. Wisdom is the process of learning what a man can
achieve and what he should rather let go of. Becoming a rational
investor will make you a better human being and help you overcome
whatever financial fears the day may bring.
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Image by Marshall Flickman under Creative Commons Attribution License. See the license terms under http://creativecommons.org/licenses/by/3.0/us