Given that noone has Unlimited Time & Energy, one has to focus on what I call the Most Relevant Factor (MRF)
Just like when you're selecting a school for your much loved child, you would compare the MRF amongst different schools. It could be the academic achievements of the students, could be the class size....
Just like when you're searching the Pefect wife/husband, you would automatically judge the woman/man in front of you if s/he meets your MRF. It could be their height, their look.....
So, the same logic should be applied when it comes to Investment.
Before jumping to buy/sell, one has to ask themselves,
"What is the MRF at this particular moment of time?"
Given that I am deeply convinced the Greatest Recession is approaching since June 2007, I have been keeping any eye on, to me, the MRF since September 2007.
It is NOT,
- the Inflation Rate;
- the Growth Rate
- the Manufacturing Index;
- the Consumer Confidence Index;
- the Exporting Goods Index
- the Inventory Stock Index
-.............
But the Unemployment Rate!!!
Whatever happens, this Unemployment Rate is NOW the MRF at this particular moment.
It is a True Reflection of what is REALLY going on in this WWIII.
More and More people are being laid off.
Being laid off in China, Japan, Hong Kong, Australia, NZ, UK, Russia, Italy, Brazil, Argentina, India, USA.........
And I think whatever the Unemployment Rate is now, it will be increased by 50% by the end of year 2009 (i.e. if it's now 4%, it'll be 6% in a year time)
Remember, the Great Depression in the 1930's had the 25% Unemployment Rate.
And even in the 80's the US had a 10% Unemployment Rate.
Given that the current WWIII is a "Once in a Century Event", what do you think the Unemployment Rate will be?
An International Labour Association just released its findings.
For the first time in 10 years, there are about 2 Billion People are Unemployed Globally!
And in US, 200,000 jobs in the Financial Industry was gone this year. And it is estimated another 400,000 financial jobs will be gone in 2009.
And with More People being Unemployed, there will be More Instability.
Just look at the recent riot in Greece.
After assessing the MRF, you have to take the MRA - the Most Relevant Action.
Fate
Keep Your Money Safe
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment