Mar 17, 2008

Time to invest.


This is the chart of the NYSE graph from 1986 till now. The very stock exchange that will affect the world market. From the graph, you can see that there's micro peak and there's definitely a slump of economy after the peak. Significantly, it takes longer to hit reach the peak then drop to the bottom.

Normally, what we heard from financial adviser is invest when the economy is good and when its in rising state. Many people will blindly follow what people do and what people say. They invest at that moment. They took that risk of buying high and selling low. Many lost their money as they fought inside their heart that "it may still rise for sure". For some lucky one, they earn at the gap before it reach the peak.

However, for a true investor, they gain money when there's a bear market. Not that they earn money that time, they just bought the share at that moment, where everyone is cheap selling their share at hand. By the time the market turn good, they sell. They sold to "us" where people start to rush in. Thats why rich people always earn money when economy not good. They took the "risk". Compare to the "risk" where we took earlier and determine by yourself which one is riskier. Which one earn more? Buy at low or buy at the gap during the rising state of the share to hit its peak?

The investor, the rich practices this. Why don't you as well? 2008, market is at its 10 years blue.

No comments:

Feed