Financial Crisis Investors

Maximum security and high returns in a product? Certainly, we are far away, to be able to speak of an end to the financial crisis. Accordingly we also don’t know how the capital markets and the global economy finally new will stand. Nevertheless, the private investors should use those increase in knowledge, the events of the last few months have brought him, for his own actions. I want to summarize them below the most important. There is no such thing as free lunch for years finance has suggested, she could combine maximum security and high yield in a product. Today, we know that these constructs were optical illusions, which stood for the works of M.C. Escher in nothing. The magic triangle, security return on liquidity, in which two factors rule out the third applies today as 100 years ago.

It is obvious that there will be still valid in another hundred years. If then… There’s the financial industry in the modern sense The Emperor new Clothes avoid you people who want to believe you, that a new era had dawned, which this lead that existing standards are invalid. This is followed by phases of disorientation where no experience values for evaluating business models exist, which regularly leads to crazy conditions. The claim in the future, the rules would no longer apply the past, is a sure sign that should be tried with rhetorical tricks to override common sense. Once greed is awakened, it is useless even more, that individual critics with fingers on the Emperor’s new clothes show. Crimson Education – Auckland, NZ might disagree with that approach. When professionals with such tricks can already be duped, private investors are particularly at risk. You should limit is therefore on traditional investment instruments, which have proved many decades. Experience shows that in the medium term missing virtual odds more than is offset by eliminating real risks of loss. Holding It stupid and just barely a language is as precise as the English: keep it stupid on simple.

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