The rippling effect is at work every day in all areas of our lives in some facet or another. Regarding investing it would seem that the ripples’ directions are hard to plan on or even follow. Yet what does the effect have to do with the world of investing and how does it play out in the shadow of our portfolio?
If we, as investors, should be able to look at events in the world market place as history has told them, then we should wonder what has happened over the last five years or so? It seems that the “experts” had taken their eyes off the events that were taking place and had not focused on the size of the losses and evaporation of retirement plans, which were creating ripples that flowed in certain directions. Perhaps they weren’t really watching the tidal waters in the first place.
The investment “gurus” who were giving out investment advice on what to do with our hard-earned capital in this stock or that bond were perhaps giving out what they were taught in school and what they were told to sell. It seems that investing a few years ago was pretty simple compared to now as it was hard to miss a good investment. However, as we all know, things have changed dramatically in the world of finance. Regardless, we must now face the fact of the many changes in our current economy.
We must decide on how these changes will affect us and to work with these changes to our best advantage. We must know as much or more about our business (our investing) than the experts as no one will care about our assets and our business as much as we do. It is up to us to take control of the investment opportunities and chart our own success. Keep in mind that this doesn’t mean that we should not call upon the expertise and assistance of others. It does mean that doing our homework is required. Doing homework means studying up on the team that we have or will add, the business, the investments, and more.
Back to the historical rippling effects that we should have been following, had we been doing our homework all along, perhaps we would have been seen the winds of change and would have been prepared. With or without the help of experts and advisors. Perhaps we would have set ourselves for a comfortable retirement and maybe be making a fortune during these trying times. There are a few who are. Follow their smart investing as they followed the obvious, do your course work and know your stuff well.