May 27 2009
Crisis: An Opportunity To Get Rich
Many of us complain or wander ever with the disappointing feeling of having been born in a time where everything important is already invented and made vast fortunes.
It was definitely in the dotcom revolution we plugged the mouth. There were still things to create and millionaires who were themselves at this time. However, opportunities seem to have been relegated to cyberspace, and those were the same geniuses had little to say about it.
Today I have good news: the much-despised and threatening global crisis seems to give us a new opportunity to the rest of mortals.
Much has been discussed about the Chinese character for crisis, which apparently consists of two parts, one meaning danger and the other opportunity. Regardless of whether this is a good interpretation of the language, the message that gives us this definition seems to be correct, at least from an economic point of view.
Crisis and the economic crisis in particular, brings great dangers, that the wealth or savings you have accumulated with so much effort into our pension funds suffered substantial losses because our assets are worth less, or risk-it appears that each growing-losing jobs, or simply earn less, and therefore revenue is not achieved.
But there are also opportunities. We heard how those who have created their wealth in the 90s, when the price of assets, and between those of stocks, very cheap, and taking advantage of the “bargain” if-then bought the assets are revalued, sell or simply accumulate more wealth in the reverse.
Today’s assets worldwide, with some exceptions such as the Chilean stock market, have suffered loss of value is only comparable with those occurring as a result of the crisis of the 30s. Investors fleeing the possibility that their assets or shares continue to decline in price, sold everything, no matter if he was selling the company or the bank’s undoing was that it was solvent, this produced further significant falls in prices of assets, for good or bad they were. Thus, good assets and solvent were punished like those who were not, therefore, now after many years is the opportunity to invest in undervalued assets and make huge profits.
In addition, many businesses are in financial trouble, leading its owners to rethink, which ultimately could mean not only succeed but also generating new wealth. Not to mention the opportunities it affords us the market itself can finally jump-start that business that we thought, now that more assets are cheap, or just because, now more than ever we need these income.
The problem, however, is able to distinguish between assets that are good and which are not. Amongst the ideas are good and which are not. This is precisely where the danger lies.
If we choose, and buy shares in companies that are undervalued, then we will get big profits, and until we can get rich. However, if you err, and buy a business or shares of the same, with which we can not weather the crisis and we are going into bankruptcy, then finally lost everything or almost everything. Same if we invest in a good idea, we can become in future Onassis, but if we’re wrong, we can lose the entire investment.
The opportunity is in front of us, but danger as well. Betting everything can become rich, but it can also lead to bankruptcy. The prudent way is to always diversify our investments, and in these periods, but look for opportunities every bet, but only a portion of our wealth.
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