Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
From Recession to an Ever-Deeper One - 19th Oct 20
Wales Closes Border With England, Stranded Motorists on Severn Bridge? Covid-19 Police Road Blocks - 19th Oct 20
Commodity Bull Market Cycle Starts with Euro and Dollar Trend Changes - 19th Oct 20
Stock Market Melt-Up Triggered a Short Squeeze In The NASDAQ and a Utilities Breakout - 19th Oct 20
Silver is Like Gold on Steroids - 19th Oct 20
Countdown to Election Mediocrity: Why Gold and Silver Can Protect Your Wealth - 19th Oct 20
“Hypergrowth” Is Spilling Into the Stock Market Like Never Before - 19th Oct 20
Is Oculus Quest 2 Good Upgrade for Samsung Gear VR Users? - 19th Oct 20
Low US Dollar Risky for Gold - 17th Oct 20
US 2020 Election: Are American's ready for Trump 2nd Term Twilight Zone Presidency? - 17th Oct 20
Custom Ryzen 5950x, 5900x, 5800x , RTX 3080, 3070 64gb DDR4 Gaming PC System Build Specs - 17th Oct 20
Gold Jumps above $1,900 Again - 16th Oct 20
US Economic Recovery Is in Need of Some Rescue - 16th Oct 20
Why You Should Focus on Growth Stocks Today - 16th Oct 20
Why Now is BEST Time to Upgrade Your PC System for Years - Ryzen 5000 CPUs, Nvidia RTX 3000 GPU's - 16th Oct 20
Beware of Trump’s October (November?) Election Surprise - 15th Oct 20
Stock Market SPY Retesting Critical Resistance From Fibonacci Price Amplitude Arc - 15th Oct 20
Fed Chairman Begs Congress to Stimulate Beleaguered US Economy - 15th Oct 20
Is Gold Market Going Back Into the 1970s? - 15th Oct 20
Things you Should know before Trade Cryptos - 15th Oct 20
Gold and Silver Price Ready For Another Rally Attempt - 14th Oct 20
Do Low Interest Rates Mean Higher Stocks? Not so Fast… - 14th Oct 20
US Debt Is Going Up but Leaving GDP Behind - 14th Oct 20
Dell S3220DGF 31.5 Inch VA Gaming Monitor Amazon Prime Day Bargain Price! But WIll it Get Delivered? - 14th Oct 20
Karcher K7 Pressure Washer Amazon Prime Day Bargain 51% Discount! - 14th Oct 20
Top Strategies Day Traders Adopt - 14th Oct 20
AMD is KILLING Intel as Ryzen Zen 3 Takes Gaming Crown, AMD Set to Achieve CPU Market Dominance - 13th Oct 20
Amazon Prime Day Real or Fake Sales to Get Rid of Dead Stock? - 13th Oct 20
Stock Market Short-term Top Expected - 13th Oct 20
Fun Stuff to Do with a Budgie or Parakeet, a Child's Best Pet Bird Friend - 13th Oct 20
Who Will Win the Race to Open a Casino in Japan? - 13th Oct 20
Fear Grips Stock Market Short-Sellers -- What to Make of It - 12th Oct 20
For Some Remote Workers, It Pays to Stay Home… If Home Stays Local - 12th Oct 20
A Big Move In Silver: Watch The Currency Markets - 12th Oct 20
Precious Metals and Commodities Comprehensive - 11th Oct 20
The Election Does Not Matter, Stick With Stock Winners Like Clean Energy - 11th Oct 20
Gold Stocks Are Cheap, But Not for Long - 11th Oct 20
Gold Miners Ready to Fall Further - 10th Oct 29
What Happens When the Stumble-Through Economy Stalls - 10th Oct 29
This Is What The Stock Market Is Saying About Trump’s Re-Election - 10th Oct 29
Here Is Everything You Must Know About Insolvency - 10th Oct 29
Sheffield Coronavirus Warning - UK Heading for Higher Covid-19 Infections than April Peak! - 10th Oct 29
Q2 Was Disastrous. But What’s Next for the US Economy – and Gold? - 9th Oct 20
Q4 Market Forecast: How to Invest in a World Awash in Debt - 9th Oct 20
A complete paradigm shift will make gold the generational trade - 9th Oct 20
Why You Should Look for Stocks Climbing Out of a “Big Base” - 9th Oct 20
UK Coronavirus Pandemic Wave 2 - Daily Covid-19 Positive Test Cases Forecast - 9th Oct 20
Ryzen ZEN 3: The Final Nail in Intel's Coffin! Cinebench Scores 5300x, 5600x, 5800x, 5900x 5950x - 9th Oct 20
How Soon Will We See Stock Market SPX 4000? - 8th Oct 20
Stock Market Spy ETF Testing March Price Peak – What Do the Charts Say? - 8th Oct 20
5 Consequences of US Debt at $50 Trillion - 8th Oct 20
Long Term Cycles Suggest Stock Price Reversion Pending & Gold Price About To Explode High - 8th Oct 20
AMD Zen 3 Ryzen 5000 Launch - Performance, Prices Skews, Cinebench r20 Scores, 5800x, 5900x, 5950x - 8th Oct 20
Gold vs. Silver – Absolutely No Comparison - 8th Oct 20
Gold: Why You Should Be Wary of the "Consensus" - 8th Oct 20
UK Covid-19 Hospital Admissions and Deaths Since Testing Positive in 28 days Analysis - 7th Oct 20
Amazon Prime Day 2020 Sales Top Tips of How To Get Big Savings! - 7th Oct 20
Want To Win Big In Forex Trading? Leverage Is Your Friend - 7th Oct 20
Why I am Voting for Donald J. Hitler - 6th Oct 20
Markets Chop & Grind: Gold, Stocks & Commodities - 6th Oct 20
Silver Price Great Buy Spot Ahead of Second Big Upleg - 6th Oct 20
Forget RTX 3080 Get Zen 3 Ryzen 5900x / 5950x - GPU vs CPU - PC Bottlenecking - 6th Oct 20
How to Get Budgies / Parakeets to Eat Vegetables for the First Time - 6th Oct 20
How to Pick a Reputable Double Glazing Window Company - 6th Oct 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Diversify and Protect Against Any “ATION”

Stock-Markets / Investing 2010 Apr 06, 2010 - 12:01 AM GMT

By: Brian_M_Thiesen

Stock-Markets Best Financial Markets Analysis ArticleMuch is said about how to protect against a rising tide of either inflation or deflation or hyper of either or stagflation.

Most of the time a one way solution is offered supporting the views of a certain writer/analyst/economist for various reasons.


“Real estate is the way” “The only way to protect is with Gold” “Stocks are a steal” “Bonds are the bargain of a lifetime” Likely at one time or another you have heard statements like this.

Looking deeper we should see and by now understand as either traders or “economic hobbyists” that in the past and especially now in todays volatile markets, a one way solution will likely become a one way problem for any style of  investor even the best short term traders.

There are hundreds of examples of dumping all or most of your money into one asset.

How about USA homebuyers in 05 holding until now, how about gold in the early 80’s etc.

Now most advisors will advise to diversify your portfolio and this can be good protection in certain sectors against some unknown scandal like accounting that could bring one company down. In such a case you would not have “lost your shirt” (or your wardrobe.)

However what if that entire sector goes down? How does diversification help? (recently oil and other commodities or markets as a whole in ’08)

So it is not that diversification is bad but diversification of what?

All investors should do one divesrification that will help them forever and that is…..

Diversify YOUR SKILLS AS AN INVESTOR!

This means YOU ACTUALLY HAVE TO DO SOMETHING besides read someones advice or even their charts for that matter.

Have we not seen countless times analysts can use the exact same charts to tell many different stories? Or even the exact same theory? Have we not seen countless times that these same charts supporting one view support an entirely different view in mere hours?

Of all things not to be lazy about, investing your money is the top in my opinion as laziness will result in losses always has always will.

Even if you are just in cash your money can be attacked.

If you really want to beat any “ation” you must simply pay attention to the markets etc. and put your money in your own hands. Afterall who else hands should it be in?

(We already give enough to the government and look where that has us!!)

Learning proper strategies that work for you, your amount to invest and your objectives is the only way. This could be that you might have to look after you… Imagine that!

Markets can switch in a heartbeat and even if you cannot anticipate this to the “T” you should be able to see at least longer term trends that can eat away or more positively offer you more or better profits than the asset(s) you have allocated high %’s of your portfolio to.

Many call or consider their money their “baby” I wonder how many people would leave their “baby” at daycare and be satisfied with a monthly report of how it is doing or even quarterly etc.

As the old saying goes and is now more important than ever

“IT IS TIMING OF THE MARKET, NOT TIME IN THE MARKET”

Higher profits truly then are the only sure fire way to allow someone to become “lazy” as we know more money can make life much easier.

I am not advising to not buy this or that but I may be advising to not “only” buy this or that and not “only” buy this or that on “advice” but rather maybe spend a few hours looking into where your money’s going for it is likley it took many hours to be able to get that money in the first place.

If you do not have time to pay attention to your allocation then maybe consider as great as someone may make investing sound for “dream life, retirement“etc. consider that they will never tell you the other side of nightmares that have happened with much higher frequency and severity.

If you want to truly protect against anything this may be the only way. Making you responsible for you and your life, portfolio and family.

Afterall most of the people who have learned to “truly” diversify in investing are the ones that are the “laziest” with the biggest “baby” spending ever less hours getting money to invest and more time enjoying their baby!!!

Hopefully you are reading this before you engage in any painful lessons, but likely will not truly understand it until you do! Often the best investors if not the best investors of all time have been the ones to learn from any of these mistakes.

Brian M. Thiesen – Regular Guy

I am just a guy who has been trading and learning markets, geo-politics, history, human nature, etc. for the past while with really no education of merit to speak of other than reading articles and books from time to time. I grew up in a small town and tried to have since birth grow in whatever way possible. I love trading and markets etc.

© 2010 Copyright  Brian M. Thiesen - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules