Financial Upheaval always has winners and losers; you can choose which side you will be on?
Linda says:
The news papers are full of individuals having to sell assets with overexposed margin loans and excess debt.
While many prominent names and companies have fallen, many smaller people who have invested in fashionable investments or highly geared property or share markets schemes, are privately looking at their situation to turn it around.
The most important factor to recognize is that the seasons or cycles have drastically changed: from fair weather to storm: from greed for gain to panic at loss; from optimism to pessimism etc. And the strategies which were good at one time, are going to result in grief now!
Markets are about 90% psychology and emotion and only 10% related to fundamental values.
Thus the US residential housing market has seen in the last couple of months, a resurgence of fear to replace greed. The access to easy money allowed price inflation that was completely out of step with salaries.
And the problems are spreading out from the United States. We have been alerting our readers of the trends for months.
BUT- there are always winners too!
The winners appreciate that the rules have changed and have cut their debt levels and are waiting to buy undervalued assets when the time comes.
NOT YET - but use this time to be in a position to take advantage of opportunities as they arise.
