Living with uncertainty

I had read in the newspaper that the stock market had declined by 400 or some points this week because of the uncertain economic environment. I’d like to know when, at any point in any of our lives, aside from feeling true love, anything was certain? Life is uncertain, that’s life’s deal. The stock market is a summation of every investor’s thoughts on the economy. It’s almost like a collective consciousness; when we are generally feeling positive and confident, the market will rise. When we are feeling discouraged and uncertain (like now), the stock market will hover and even decline.
A clear direction, even if we have to create it ourselves and not rely on economic reports, will ultimately help us recover.
Warren Buffet is often credited-and rightly so- for making good investment decisions. He does his research, analyzes the underlying investment and marketplace, and then sometimes does what most investors cannot; he goes against the economic tide and invests (buys) when others are selling because they’re scared of losing money. This provides Mr. Buffet (and others who follow his tenets) the opportunity to buy at a lower price, because other investors are selling, reducing the stock’s price. This reduction is price creates even more fear, causing the price to decline further. Buy low and sell high. It’s a great idea but most people don’t have the stomach and faith to carry it out.
How do your fears affect your financial position?

About Amy Jo Lauber

I help people who are overwhelmed take control & make good financial decisions with confidence and experience peace and abundance. Are you ready to say goodbye to working hard but not having anything to show for it? Go to www.lauberfinancialplanning.com "Let's Talk" tab to schedule your complimentary initial consultation and take the first step on the path to financial empowerment.
This entry was posted in Personal Finance with a twist. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s