Don’t Read George’s Post (… before reading mine)
It’s Matt, here…
Take your prozac or any other non-prescription depression remedy (I like M&Ms) folks, George is about to depress you.
But have heart, I’m here to tell you why everything is going to be alright, and maybe even better.
George is going to tell you that the housing market and the stock market are in Le Crappier.
But, there are a few reasons why an investor should not be too depressed with this info.
First. Smart investors make money when the market goes up… and more when the market goes down. And it’s not just by shorting investments, which can be another source of returns in a bad, choppy market. You’re about to pass by some great deals!
Second. Joseph Schumpeter lives! Schumpeter’s theory of creative destruction will improve the market over time. It may suck now, but as long as bureaucratic fingers are left out of it, we’ll have a smarter market and smarter consumers.
Third. Housing prices are falling and that should help new home buyers. And clean up some unrealistic pricing.
Fourth. Fear breeds fear. We have to remember that the more you fear, the more there is to fear. That’s the market in the nutshell. Let’s keep this in mind: negative reactions should produce constructive action. If you burn your hand on a stove, you don’t give up lighting fires, you just learn to be more careful.
Fifth. People are incredibly inventive and innovative. In fact, we’re designing investment systems that will make money for you no matter what way the market is heading.
Now, I didn’t say all of this will be easy or without pain, but just like an athlete training, we should all expect some hard workouts before the Singularity.
Ok. Go ahead. Read George’s post.
If you dare…
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
