Tag Archives: investments

THE TRUTH ABOUT INVESTMENTS

Diversified-Investments

Investment: n. giving a subset(s) frequently money and/or a different subset(s) and desiring a predicted profit(s) and/or a desirable change(s) in given and/or different subset(s) at some point(s) in the future

Historically the smart investor invested money where he or she could get about 6% or more of an annual return on money and could retire as a millionaire. Today most conservative investments only return about 2 to 3% on money and inflation frequently eats away what little profit the investment makes.

Real Estate investments will keep pace with inflation but if you have a mortgage on the land or property at about 5% then you are still losing wealth letting the bank make all the profit.

The stock market, rigged for big money and fast computers, is no longer a safe long duration investment for the small investor nor a large investor and the only ones making a killing are the short duration investors such as big banks, hedge funds, and billionaires. If you don’t know where the big money boys are going to invest or divest then it is almost a guarantee that you will lose money in the volatile stock market and not make any profit in the long duration.

Banks get all their investment money almost free of charge from government counterfeited money and they no longer have to depend on small investor savings accounts for their money. The result is that banks pay almost no interest on savings accounts and rip you off big time if you keep your money in a bank.

Gold prices are also inflated and deflated at will by big money and if you buy at the inflated price then you may lose about 30 to 40% of the value of your money when the deflation occurs in a matter of a few weeks or months.

Historically if you wanted to live on easy street in old age or a few years before retirement you invested your money wisely in real estate, stocks, municipal bonds, or a small business.

Today small businesses are becoming extinct, crap shoot stocks are very risky investments in small companies which are mercurial in nature and monopoly company stocks with little growth don’t keep up with inflation price wise. Municipal bonds and bank savings accounts don’t pay enough interest to keep pace with inflation. Real estate is only profitable for apartment landlords and huge corporate builders.

If you are an average wage earner then you frankly have no place to invest your money for future gains so most decide to live from paycheck to paycheck in great debt and spend it all not even worrying about retirement. Most individuals no longer have an emergency reserve of money for hard times and the government has no emergency reserve but just prints counterfeit money and adds to the national debt.

Responsible individuals can’t be independent and responsible with their money so they act irresponsibly and the government and banking system which encourages the irresponsibility itself suffers from the same irresponsible spending malaise.

The financial system does not encourage profitable investment for the average citizen so most no longer invest in anything but hope that government will bail them out in emergencies and old age.

Live for today and screw tomorrow is a recipe for social and economic disaster in the long duration for both individuals and nations.

Finally you can make an investment in your offspring, a human(s), an organization(s), or an invention(s) and hope that they will prosper some day and make you happy with a sense of accomplishment or even benefit you financially.

CONCLUSION:

The financial investment industry is rigged favoring big money and if you are an average investor then there is little hope that you will make a profit on your money and chances are great that you will probably lose much of it trying to make risky investments which is the sorry state of most remaining investments these days.

The myopic economic system does not encourage conservative investments, savings, and thrift and that is why many humans are mired in debt and the nation itself is mired in debt and is teetering on the edge of bankruptcy which is becoming more ominous with each passing year.

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THE TRUTH ABOUT THE STOCK MARKET

markets_2007798b

The stock market today is a speculative crap shoot where the whole market can decrease in value as much as 50% in a few days or weeks as during a crash and the extreme volatility in individual stocks is an indication that their price is being manipulated by big money and fast computers and not small investors. In effect, price movement is no longer based on fundamentals or evaluation of tangible assets.

New technology stocks are where much of the speculation is occurring and if it is a company with a truly innovative product or service then it can experience incredible short term growth. However, long duration growth is soon stopped by big technology firms which buy them up and incorporate them into their companies to eliminate competition or to give them a future technological competitive advantage.

Investing in an upstart IPO and holding on to it for the long duration is no longer a realistic goal for an investor hoping for million dollar gains twenty or thirty years from the start of an IPO.

Finally, the stock market is a short duration speculative investment which can tank at any moment all determined by whether the big money invests in it or withdraws its financial support to suddenly invest elsewhere. The stock market has become a short duration gambling enterprise and not a serious long duration investment.

If you want guaranteed retirement money security for old age then don’t invest in the stock market for the long duration. Stick with real estate, diversified municipal bonds, or a precious or rare commodity such as platinum and gold when it is not being sold at inflated prices because big money also manipulates commodity prices and makes them go up or down at will. The real value of a metal commodity is the price it takes to mine and refine it so if the commodity price is three or four times its production price then don’t buy it at this inflated value.

You probably won’t become a millionaire but you will maintain the value of your hard earned dollars until retirement when you can spend some of it without finding out that inflation has reduced your savings in a bank to a pittance over a forty year period.

 CONCLUSION:

If you want money security in your retirement years, don’t invest in the stock market for the long duration. If you want to gamble with your hard earned money and probably lose most of it then play and get burned in the stock market!!!!!!

If you liked this evergreen truth blog then read more of them and one or more of my evergreen truth books, especially COMMON SENSE, rays of truth in a human world filled with myths and deceptions.

10 STOCK MARKET MYTHS

stock_market_crash

Here is a link to the article by Brett Arends at online.wsj.com:

http://online.wsj.com/news/articles/SB128000197220920621

If you liked this blog read more of them and read one or more of my evergreen books, especially COMMON SENSE.

Enjoy!!!!!!