Basic Principles in Investing
Friday. 9.19.08 10:38 pm
Given that the world financial situation has become shaky, given that people were buying houses they cannot really afford, at prices higher than what is deemed fit, it is inevitable that price correction in real estate will cause chaos within the banking sector.
It is also interesting to see that our interdependence means that the ultimate and final point, that one economy is interconnected to the world, is now better noticed. We are all dependent to each other to keep our lifestyle the way it is.
When US housing markets failed, which was predicted by many investors months ago, people started to realize that their money is invested on many intangible concepts. There is nothing really solid to hold on, except for the paper currency or stock paper which also points to the paper currency. We are investing and profiting from a system which is intangible, and when it fails, we fail.
Brick and mortar companies, once ridiculed for not having the ability to grow as fast as other industries, are now better appreciated as they have something tangible to offer. Banks and investment houses have focused on leveraging and sugarcoating their balances, borrowing more from everyone to lend out. It is a cycle that is not too different from a pyramid scheme.
Money has to keep on flowing for everyone to utilize and survive, the moment one group hoards it, the circulation is restricted, and problems present itself. There was a great market imbalance, given that there is no real balance in brick and mortar economies worldwide, this problem will present itself more evidently over the next few months.
At this point, gold is underrated and a good investment, when times go bad, investors with money prefer the security of holding something tangible, for as long as the price is still fair.
As we brace ourselves for more crisis, we will have to remember that the biggest opportunity rests on bad times. Money solid individuals buy tangibles at bargain prices and let it speculate. More importantly, companies who do not really have anything solid to present will have to fail, and let lessons from its failure bring forth better and more solid companies.
The world, and its economy, will have to face constant changes, the world keeps changing as it is. Nothing has been the same in the past 5,000 years. Cities have flourished and have been deserted. The evolution of economics and culture brought forth what we see now. For this change to be better appreciated, we have to step back and re assess, asking the question, "what is the bug in this system causing it to crash?".
In crisis comes the need to survive, to become stronger. We can weather this situation by reassessing how comfortable things have been, and trimming down excesses and negligences to keep ourselves financially fit and ready to take advantage of the upcoming improved economy.
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When Capitalism Goes Wrong
Saturday. 9.6.08 5:15 am
Capitalism was ideally set to run things on their own. Given certain parameters, items will be given their own value based on what people feel would be their priority importance and their assumed value. Things have been working out very well in this system, until we start to realize, things might have actually gone out of control.
Consider this, many of us work anywhere between 8 to 10 hours a day, this does not include our commute to and from work, our morning rituals in preparation for work, and for others, our time spent on some nights preparing for work the next day. Invariably, our entire day was dedicated and focused to work.
This would not be a problem if we are greatly motivated by our achievments, but if we work just to pay the rent, this is where reality will rear its nasty head.
30% of your time at work goes to paying the government, social security, and healthcare, which have shown concerns and issues on how it can be kept sustainable.
A good percentage of our wages go to gas for the vehicle, vehicle maintenance, and installment, which we use going to work. Another large chunk of our salary would go to either rent or payment of house mortgage, which we only sleep in during weeknights, and not spend much time in on weekends, as we tend to go out.
Everyone craves for that prime address and better car without first realizing that they are not really making the most out of them. The real remaining amount let for ourselves to truly enjoy is so minimal that we try to sacrifice truly enjoying ourselves only because there is rent and installment to pay. Welcome to the rat race, no one seems to be winning though.
Capitalism is good, but Capitalism also means we are responsible for what we really want, no one will tell us what to do, or rule us on it, we are plainly answerable to how great or miserable life can get. What am I getting at?
Perhaps many of us have been trained on how we are supposed to perform at work, but do not consider that work is not the entirety of our lives. Many have spiritual, social, and familial responsibilities, they need their fair share of time as well. It is when the greater purpose is being pursued, and not to make ends meet, are we then on the right track.
How do we make this work? Rethink where we have to live, rethink what we have to drive right now. There is no sin in choosing a smaller car, when we ride alone most of the time. Carpooling is better as everyone can maximize the efficiency of their transportation mode, and each one can save on gas. Many values and lessons are already set forth, the only main point is we have to take that discipline and implement it. These are positive habits that can help us choose to truly enjoy the fruits of what we work for, rather than struggle throughout only because SUVs bigger and better, or that the dream house is always pursued and therefore should be sought.
We have to reflect and rethink what we are truly doing. We can make capitalism work for us, as it is ideally set to work for everyone, but we have to know how to make this happen.
If we watch and bargain hunt, it is always good to dream and attain our dreams, but in a sustainable fashion, and if we get better deals by being patient, and choosing the job we love, we become more well rounded with our activities, and when we look back, we can smile and say without regret that we have lived our lives very well.
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Monday. 8.11.08 4:56 am
Your result for The Brutally Honest Personality Test...
Have you no soul? It's clear you have no heart and that your blood runs cold, but really, do you have even one redeeming factor?
Sure. You're a natural born leader. So was Hitler. You just don't like people, do you?
You don't play games. You take charge. And there's very little room for mistakes in your world. You're forceful, intimidating and overbearing.
Heard of the word "patience?" Trust me, it's a word and it's something you're sorely lacking. Believe it or not, you're not always right. Learn to have some patience for those who think differently from you, knobflap.
From the way people's knees knock when they see you, you should have realised by now that you're not exactly a "people-person." You're more of a "people-eater." You just ain't tuned into people's feelings and probably couldn't care less whether you were anyway. Maybe you're not from this planet but the rest of us are.
Sure, you're intelligent. So what? You have some semblance of power. Big deal.
At least people LIKE the rest of us.
If you want to learn more about your personality type in a slightly less negative way, check out this.
The other personality types are as follows...
Loner - Introverted Sensing Feeling Perceiving
Pushover - Introverted Sensing Feeling Judging
Criminal - Introverted Sensing Thinking Perceiving
Borefest - Introverted Sensing Thinking Judging
Almost Perfect - Introverted iNtuitive Feeling Perceiving
Freak - Introverted iNtuitive Feeling Judging
Loser - Introverted iNtuitive Thinking Perceiving
Crackpot - Introverted iNtuitive Thinking Judging
Clown - Extraverted Sensing Feeling Perceiving
Sap - Extraverted Sensing Feeling Judging
Commander - Extraverted Sensing Thinking Perceiving
Do Gooder - Extraverted Sensing Thinking Judging
Scumbag - Extraverted iNtuitive Feeling Perceiving
Busybody - Extraverted iNtuitive Feeling Judging
Prick - Extraverted iNtuitive Thinking Perceiving
Take The Brutally Honest Personality Test at HelloQuizzy
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Saturday. 7.19.08 2:57 am
My Short Stories in Writerscafe
Tuesday. 6.24.08 12:50 am
Friday. 5.23.08 1:02 am
Artworks that will keep on changing (from google)
Thursday. 5.22.08 10:08 pm
I am using this now, pretty nifty
Monday. 5.12.08 5:12 am