Jan 4 2017
Our global economy may not be so stable this year and we had better be careful in our investment, especially in stock market. If the stock market shoots up quickly, the risk of falling is higher. It may be that big shareholders are pushing up the share prices deliberately, inducing small shareholders to buy at high price.
As long as investment is concerned, it is basically safe if we handle conservatively. Actually, for a young man it is the only way to invest on getting knowledge which he can use for throughout his life in any occasion he likes. For a middle age man, if he has wealth beyond his daily life requirement, he can invest on real estate which is safe in every point of view. Real estate is some time up and sometime down in prices, but in the end after many years, the prices are most profitable than other commodities. Should you are an old man, it is better to keep money in cash at bank. Since he is old, inflation cannot eat away his money so much in a matter of few years. But, never buy shares which may be destroyed by some market storm.
For instance, in the year around 1995, there was a big enterprise, called Enron which said that if you bought their shares, you can get huge profit out of your imagination. It was true that from 1997 to 2000, share price jumped up from US dollars twenty to US dollars ninety. But, after one year in 2000, this company bankrupted, causing the world investors to lose huge amount of money. It was said in finance circle that before the bankruptcy the chairman of the company summoned one hundred forty high officers to his mansion where each person got one check of US dollars five point six million as a bonus from this chairman. Actually this was cheated money from small shareholders.