The crisis that has besieged the American economy drew its rise to the credit crunch which came as a result of the abusive credit lifestyle imbibed by American citizens.
People borrowed money that they can not afford to pay. A virus that started in
the housing and financial sector spread to other sectors of the economy.
America is indebted to over $53 trillion and the figure continues to increase
by the day. This has led to the downside in the global stock markets as this
economic crisis extends to other economies worldwide. Two recent quarter
results released by the Germany showed that recession has extended its ugly
hands to the country and this stands as a threat to the economy of the Euro
zone. Every financial investor worldwide wonders if this is the end as
retirement portfolios of various portfolio management firms continue to report
their accounts in red.
Every event that happens in the history has its lessons to be learned from as men and women all over the world panic over global economic recession. Stock market is a
reflection of an economic well being of any country. Therefore, the stock world
is not left untouched as the global stock market experience a rapid fall in the
prices of their listed stocks. Many investors have recorded losses but do you
know there are some who are making their millions from this panic filled down
market. It all depends on the use of the right trading strategy to suit the present
situation of the market.
According to Warren Buffet, one of the successful financial market investor of our generation he said, “I am fearful when others are greedy and greedy when others
are fearful”. He means that he is more
careful during the bullish runs but invest more during the bearish period
because price of stocks are undervalued. Have you read the investment
principles of this intelligent man? If so, you will agree with me that one of
the principles states that he researches for fundamentally sound companies and targets the time to buy them at a
fallen price. It is a good investment when you have good stocks in your
portfolio at undervalued prices. This is the time most people are fearful and
you need to be greedy. There are so many undervalued good stocks traded in most
exchanges worldwide. Find them, keep track of them and invest in them at an
Moreover, look at the history of the stock market starting from the 16th century till date; you will agree with me that what we are experiencing today
is not unprecedented. The market experienced a bearish period in early 1930s
and recovered from it. The market has been facing the bullish and the bearish
seasons. The bearish season facing the
market today will not last forever as all the leaders of the world gather
for mitigation against this economic humdrum we still hope for a change?
According Oprah Winfrey, “luck is when preparation meets opportunity”. What are you waiting for? You need to position yourself by grabbing the necessary knowledge
and information to be able to prepare and participate in the global economy.
A WAY FORWARD.
We are living in the information jet age, so there is the tendency that anyone not on board will be thrown off. We need to be alert in order to acquire necessary
information and utilize them to our economic transformation. Acquiring
necessary skills keeps us on the right track to be able to take full advantage
of the opportunities as they present themselves. The stock market that has
fallen today will definitely be up tomorrow and where will you be when this
will be happening.
Many economic analysts has said that a way to invest in this economic crisis is to be alert on the government and their policies as this will determine which
sector of the economy that will be recovering before the other.
HOW WILL I START?
Ask no more because I will be recommending a very powerful e-book written by me, Nnadi Jane Chidiogo, “SECRET PRACTICAL GUIDE FOR STOCKS BEGINNERS”.
This book is motivational and contains a practical guide that can turn a novice to a
professional stock trader. It is what everyone who loves to go global needs for
his/her quest in investment pursuit.