Learn to Read the News paper

“The sky is falling in, Chicken Little”……

“The world is coming to an end”……

“The economy is in a more desperate state than the 1929 depression”..

“200 killed in avalanche”…….

Have you ever noticed that there is never any good news on the cover pages of your local newspaper? It is always relegated to a tiny thumbnail article buried somewhere In the depths of incredible negativity.

A lot of the journalists and pundits create more of the messes we live than the actual events themselves by self-fulfilling prophecy. If you say it enough, it will come to pass.

Over the last few months, we have been bombarded with bad news, bank failures, bankruptcy filings by huge billion dollar multi-nationals, war, doom and gloom.

I, on the other hand, have been entertaining my friend’s by showing them how to actually read the newspapers. Page one of the business section is doom and gloom.

The thumbnail’s on pages 3 and 5 however, tend to paint a very different scenario.

A $41 billion corporate merger, another with share prices up 62% over last year, another company showing record profits with 31% over last year, bank dividends over 17% for the period, military deals in the hundred’s of millions, airplane sales for $600 million, and more.

“Job losses hit 129,000 in January of this year”…..8% unemployed………”

Now, lets look at that. It’s always about how you look at the numbers. If 8% are unemployed, that must mean that 92% are employed.

If one follows the stock market and the real estate market over a long period of time, one will notice that when the market is out of control, it will be corrected, then return to more normal growth.

Real estate is exactly the same. We have huge boom markets when everyone is investing heavily in real estate. When the charlatans come out of the woodwork and are selling their methodology to make a fortune in real estate, then you know it is the time to get out.

We had the crash of the Savings and Loans in the United States where many lost their homes and their shirts….what followed was a boom in real estate for another many years.

If one looks at real estate deeds of sale over a 100 year period, it is always up. They aren’t making any more land.

Technology stocks were the same……then we had the ‘dot. com bomb’  and prices dropped drastically. Similar to tulip futures !

So, take the high road, invest in good stocks or property and stay in the long haul.

Don’t listen to the experts. Listen to common sense. 

 

Trying to get perspective