A Glance at Some Good and Bad Investor Thoughts (trading soybean futures)

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Thursday, 19 February 2009

By Musa Aykac

Most fiscal management classes teach it's student about the direct correlation between risk and return at the initial stage. Many financial organizations and individual investors continue to buy these high yielding sub-prime instruments or unsecured bonds. Should we continue to pursue them blindly?

We should instead begin asking questions before pursuing these blind interests, questions such as:

How come this tool provides so much high production, when it is advertised as low risk investing? What will the hazards and risks be?

We want to have the transparent ness of this hazard evident before even thinking of investing into this so called secure investment. Certitude is among the most common snares; people may fall into it and must be well aware of all the cracks and blind spots that they may well come across.

Give attention to what you actually don't know about any business sector prior to any investment made. This is evident through a quote from Aldus Huxley; "truths don't stop to exist only because they're ignored".

Giving attention to unknown details magnifies the risks and is proven by the work of a group of thinkers in 2006. A couple of experts and policy makers ignored the worries that the United States real estate sector would plummet as soon as interest rates began to rise. They dismissed the advice of many and in turn, we have seen the outcome with respect to the real estate market. Though clear-cut warning signals of a closed United States real estate crisis were pointed at for more than 2 yrs, most investors failed to sense it or just neglected the realities.

So ultimately, what caused the fiscal crisis?
It's mainly caused by herd thinking along with certitude, egocentrism and greed with short-run focus on thrilling development, individual gains, remuneration and ignorance of sustainable long-run development and revenue.

The Conclusion of today's economical slump is a human mistake, not by some biological catastrophe; it's the human's ignorance, rapacity, self-centeredness which Lord Gautama Buddha specifies as poison implanted into the man's brain. As said by Einstein "We can't resolve our troubles with the same reasoning we used when we made them".

As times are becoming worse with the economic system and recession stances, we must will our colleagues to wipe out bad ideas and wake up as it's time for a fresh productive reincarnation. The motto will be; "renovate our economic system to reduce agonies and torture of the recession"

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