The Final Cut
A person can not afford not to participate in the stock market. Whether you are a trader or an investor, investing a portion of your money in the stock market is an effective way to hedge against inflation. You just have to be wary of holding on to the ff:
- a losing position
- stocks in bear market cycle
- speculative stocks
In fact, whether you know it or not, whether you like it or not, you are investing in the stock market. You do so in many involuntary ways – your SSS contribution, your insurance policy, even your bank. There are many institutional investors out there who place YOUR money in the stock market.
The problem is that there is lack of information. Where do you turn to for good and reliable information? There are brokerages that offer people stock investing seminars. However, if I’m not mistaken, most of them are about trading. People have to know more about the stock market, outside of trading. We need more investors, not just traders. Investors are people who take a long term perspective.
I’ll perhaps be flamed, but I think that investors create value, while traders create volume. It’s similar to taking a macro economic perspective of things. Spenders spur the economy; however, if you want the economy to prosper in the years to come, you want savers. This is not to say that we should have one and drop the other. It's merely offering people a fresher perspective.
People will always have their own preferences and risk tolerances. As with all things in life, a balanced mix will ensure a path to continued prosperity for the local stock market.
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Starting this week, there’ll be some changes to this months old blog of mine. I’ll share my experiences with investments in general. I’ll talk about what I do, what I did, what I plan to do, how I did it, how I will do it. How I see things through investment eyeglasses on my nose.
I promise I'll *try* to update this blog daily. :-)
It’s going to be the daily journal of the guerilla investor. One day, I hope *guerilla investing* will become ubiquitous, and I’ll buy my stake for world domination. Haha. Ciao!
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