Which are the High Risks of Investing in these Volatile Times?
1. Being too conservative, so that your hard-earned savings don't keep up with inflation.
2. Being too aggressive, so that you end up losing your shirt or blowing up part of your portfolio.
3. Trying to time the market. Study after study has shown that no one can consistently time the market.
4. Unwisely turning your money over to a money manager who loses your wealth, slowly or quickly.
Investing can be one of the most frustrating experiences in life. It reminds me of an old saying on Wall Street:
"Sell them and you'll be sorry,
Buy them and you'll regret,
Hold them and you'll worry,
Do nothing and you'll fret."
How Recessions Help You?
Recession. It’s the boogeyman of the economic cycle. And while many people dread these low points, our economy would be worse off without them. How could something so negative make a positive impact on the economy? It’s simple.
When the economy is expanding, money flows into hot, high-growth sectors. Over the years, as the money piles into one or two booming sectors, other sectors are ignored. Eventually, there is over-investment in the booming sectors, while the others are left under-invested.
What a recession does is help reduce the over-investment and redistribute that money to under-invested sectors. This helps add new jobs, new industries, and new sources of income to the economy.
For example, after the real estate bubble collapsed, the money flew (and is still flying) right into commodities (which saw massive under-investment throughout the 90s). You can be sure that once the commodity sector expands significantly and finally begins contracting, money will fly into other parts of the economy that need the money more.
So you see, recessions are a necessary function of the markets. Without them, money isn’t distributed as effectively. And you can do your part to nudge the economy upward - and make serious money for yourself - by seeking out good deals in under-invested sectors.
So, the following articles are recommendations to expand our knowledge and improve our returns.
INVESTMENT & BUSINESS
Strategic Business Plan
One Minute Manager by Ken Blanchard and Spencer Johnson
Strategic Planning and Execution: The PROMETHEUS Process by John Warden
Prometheus VIDEO Series by Jim McCarthy
Business and Advertising Tips by Jim Ackerman
Marketing Lessons from a Master Karate Teacher by Troy White
How to Create Your Unique Selling Proposition (USP) by Jay Abraham
Practical Creativity Checklist by Dan Kennedy
Behavioral Economics and Psychodemographics by Tom Butler
Your Biggest Challenge… Solved? by Jeff Smith
Business Book Summaries
1. Read or listen to a Free Soundview Executive Book Summary: TALENT IS NEVER ENOUGH - Discover the Choices That Will Take You Beyond Your Talent by John C. Maxwell.
2. FAQ: What kinds of topics do the Summaries and reviews cover?
3. Each month you'll receive two or three eight-page summaries of the best business books each month
4. "The concept that Soundview pioneered has saved executives thousands of hours of reading time." - Dr. John C. Maxwell, The 360 Degree Leader
Marketing Gurus Review
Peter Drucker: Management
Brian Tracy: The psychology of selling and Time Management Strategies
Jay Abraham: Direct Marketing
Edward Deming: Optimization ( Kaizen )
Buckminster Fuller: Innovation and Creativity
Sir Richard Branson: Entrepreneuship
Michael Masterson: Business Grow Systems
Ken Blanchard: Management
Jack Canfield: Motivation
Paul Lemberg: Business Strategies and Time Managment
Dan Kennedy: Direct Response Marketing and Copywriting Tips
Investment Experts Review
Warren Buffet
Sir John Templeton
RECOMMENDED SOURCES:
Ready, Fire, Aim: Zero to $100 Million in No Time Flat by Michael Masterson
Forbes' Greatest Investing Stories
Fundamental Analysis, Value Investing and Growth Investing
The Lazy Person's Guide to Investing
Rich Dad's Advisors
The Credo of the Rich
The rich don’t talk about this much… but most of the rich in the world today weren’t always wealthy. They got rich in the markets… In hedge funds… In real estate… In private equity…
And they did it with this simple credo that wealthy investors understand. It’s perhaps more true today than ever:
- Don’t be afraid, be smart.
- Get good advice.
- Take responsibilities in all decisions.
- Don’t get greedy.
- Understand what you’re investing in and why.
- Take profits.
- Grasp opportunities.
- Look for events that create opportunities, that’s where it all starts.
Fact is, rich investors got that way by knowing when to buy, when to sell, and when to sell short. Once they were rich, the key to staying rich is keeping their money by not losing it.
They also know that if you’re out of the game, you’ll never get rich. You’ve got to be in the game and make sure you hold onto your gains.
These are the roads we travel, looking for the milestones that signal an event – a game changing event. That’s when we head down that road.
– Shah Gilani | 
