Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Diversify and Protect Against Any “ATION”

Stock-Markets / Investing 2010 Apr 06, 2010 - 12:01 AM GMT

By: Brian_M_Thiesen

Stock-Markets Best Financial Markets Analysis ArticleMuch is said about how to protect against a rising tide of either inflation or deflation or hyper of either or stagflation.

Most of the time a one way solution is offered supporting the views of a certain writer/analyst/economist for various reasons.


“Real estate is the way” “The only way to protect is with Gold” “Stocks are a steal” “Bonds are the bargain of a lifetime” Likely at one time or another you have heard statements like this.

Looking deeper we should see and by now understand as either traders or “economic hobbyists” that in the past and especially now in todays volatile markets, a one way solution will likely become a one way problem for any style of  investor even the best short term traders.

There are hundreds of examples of dumping all or most of your money into one asset.

How about USA homebuyers in 05 holding until now, how about gold in the early 80’s etc.

Now most advisors will advise to diversify your portfolio and this can be good protection in certain sectors against some unknown scandal like accounting that could bring one company down. In such a case you would not have “lost your shirt” (or your wardrobe.)

However what if that entire sector goes down? How does diversification help? (recently oil and other commodities or markets as a whole in ’08)

So it is not that diversification is bad but diversification of what?

All investors should do one divesrification that will help them forever and that is…..

Diversify YOUR SKILLS AS AN INVESTOR!

This means YOU ACTUALLY HAVE TO DO SOMETHING besides read someones advice or even their charts for that matter.

Have we not seen countless times analysts can use the exact same charts to tell many different stories? Or even the exact same theory? Have we not seen countless times that these same charts supporting one view support an entirely different view in mere hours?

Of all things not to be lazy about, investing your money is the top in my opinion as laziness will result in losses always has always will.

Even if you are just in cash your money can be attacked.

If you really want to beat any “ation” you must simply pay attention to the markets etc. and put your money in your own hands. Afterall who else hands should it be in?

(We already give enough to the government and look where that has us!!)

Learning proper strategies that work for you, your amount to invest and your objectives is the only way. This could be that you might have to look after you… Imagine that!

Markets can switch in a heartbeat and even if you cannot anticipate this to the “T” you should be able to see at least longer term trends that can eat away or more positively offer you more or better profits than the asset(s) you have allocated high %’s of your portfolio to.

Many call or consider their money their “baby” I wonder how many people would leave their “baby” at daycare and be satisfied with a monthly report of how it is doing or even quarterly etc.

As the old saying goes and is now more important than ever

“IT IS TIMING OF THE MARKET, NOT TIME IN THE MARKET”

Higher profits truly then are the only sure fire way to allow someone to become “lazy” as we know more money can make life much easier.

I am not advising to not buy this or that but I may be advising to not “only” buy this or that and not “only” buy this or that on “advice” but rather maybe spend a few hours looking into where your money’s going for it is likley it took many hours to be able to get that money in the first place.

If you do not have time to pay attention to your allocation then maybe consider as great as someone may make investing sound for “dream life, retirement“etc. consider that they will never tell you the other side of nightmares that have happened with much higher frequency and severity.

If you want to truly protect against anything this may be the only way. Making you responsible for you and your life, portfolio and family.

Afterall most of the people who have learned to “truly” diversify in investing are the ones that are the “laziest” with the biggest “baby” spending ever less hours getting money to invest and more time enjoying their baby!!!

Hopefully you are reading this before you engage in any painful lessons, but likely will not truly understand it until you do! Often the best investors if not the best investors of all time have been the ones to learn from any of these mistakes.

Brian M. Thiesen – Regular Guy

I am just a guy who has been trading and learning markets, geo-politics, history, human nature, etc. for the past while with really no education of merit to speak of other than reading articles and books from time to time. I grew up in a small town and tried to have since birth grow in whatever way possible. I love trading and markets etc.

© 2010 Copyright  Brian M. Thiesen - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in