Why Reactionary Investing Won’t Allow You to Profit From this Crisis

January 20th, 2008

January 21, 2008

Recently I’ve posted quite infrequently on this blog as I’ve been busy putting the finishing touches on my book “Confessions of a Wall Street Insider: A Zen Approach to Making a Fortune from the Coming Crisis”. However, I wanted to write a brief entry today regarding the proper psychology that is necessary to build, and not lose, a fortune from this coming crisis. Within the past two weeks, I noticed that the requests to join my Facebook Group, “Crisis Investing” (just go to Facebook and perform a group search to find it) have spiked and that the number of visits to this blog have more than tripled. I imagine that this is so because many people have lost great sums of money at the beginning of this year as stock markets in Asia, the U.S. and Europe have all plunged. For months I’ve been telling people that the stock markets were going to plunge. In fact my exact words at a Crisis Investment seminar I gave in September of 2007 was that “triple digit down days in the Dow would become commonplace.” Of course, if you couldn’t attend any of the seminars I gave in the U.S. or Asia, then you could have found the same guidance on my facebook forum, here at this blog or my subscription services available on this website. Yet most investors took no action until my predictions actually started becoming a reality. And this is the important psychology 101 lesson to be learned here. To make a fortune from this coming crisis, you have to be proactive, and not reactionary.

Most investors only seek help when significant damage to their portfolios has already been done. The proper time to make change is many months before the damage is inflicted. As I’ve been calling for the actions that have afflicted global markets at the beginning of this year for many many months now, the signs have obviously been everywhere and clear to see. Here’s another tip. The probability that the corrections in the U.S. stock market could evolve into a full blown crisis is very strong right now. Whether this happens or not depends a lot on the actions of the U.S. Federal Reserve. However, given that the probability that a greater crisis is very strong, it is still NOT TOO LATE TO PREPARE. If you’ve suffered great losses in the markets already, the worst possible thing you could do is sit tight and hope that you’ll get everything back. Radical changes in your portfolio structure should be made now. The type that will allow you to profit from this crisis, instead of being wiped out from it. You can receive guidance from our Platinum Membership. If not, just ensure that you receive guidance somewhere. And ensure that you receive guidance from an expert, not just from someone that is jumping on the bandwagon of precious metal stocks and lacks experience with this asset class. It would be a shame to be invested in exactly the asset class you need to at this time and STILL LOSE MONEY, which is a possibility if you have anyone other than an expert advising you in your precious metal investments. Good investing.

Entry Filed under: Investment Psychology, The Peak Investment Crisis & Stock Market Crash