Friday, January 25, 2008

Classic Black Must Come Back

How does it happen that the entire health of the stock market is affected by one Rogue Trader can mobilize the Fed to do something?

My former accounting and personal finance professor once said that the best way to buy stocks is to go by the old saying "Buy in May and Go Away." If you believe in the health of the company that you paid for and the health of the US economy, then there shouldn't be any need to micromanage the company.

Now that is going to change because the US economy is not so stable. China, the sleeping giant, is just at the birth of the Industrial revolution and moving fast. A lot of Americans still think of credit cards as free money and look beyond interest rates as negative incentives not to pay off their debts, which is probably what gave in to the subprime crisis anyway.

Fellow Millenials: Listen up! USE that altruistic nature that you so value and help the US prepare for a healthier economic future. You don't want to end up on the streets smelling more like ammonia than Coco Chanel.

Yes, I am a millenial too and yes, perhaps I was spoiled by doting parents but once they let go, you get the real idea about what rock bottom looks like.

Living in the "now" is not as important as living comfortably. We're most likely not going to remember the fancy Coach bag at age 80 and in need of health treatment that probably costs just as much as the bag, which won't be trendy any longer.

The way the financial sector has structured their marketing tactics (0% APR, Health Services on Credit, Buy Two for One, etc) just to increase market size has to change. It's done nothing but taught us that everything is for free, even if temporarily. And it's obvious that today's market simply has the kind of behavior that expects everything for free: free internet, free services and instant cash. Young people have to become more educated about the way they spend their money. The color black is almost always in fashion, so ladies, gents and metrosexuals, let's try to remember that red should only be used in moderation.

And for the anti-consumers out there: you know you're just as bad toting lululemon gear, $50 to $100 fair trade yoga bag and taking yoga classes that most likely cost you $150 per month. This is enough to feed a family in Cambodia for half a year.

Let's get real here. Do something huge, save the world economy by SAVING. And if you're going to make an investment, do it but don't expect instant gains. We're going to need it when Hydroxatone becomes our new best friend.

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