subject: How Will The Korean Conflict Affect Your Money? [print this page] By now you've probably heard that North and South Korea started shooting at each other - which served as a reminder to me (and I hope you as well) that what we call "the economy" is no longer a US economy. It's a global economy, and it becomes more and more global every day.
Soon after the Korean event, the Dow dropped 150 points in one day. But the irony is, the very next day, the market closed up 150 points.
What that tells me at least in the near term; is that there hasn't been much of an impact from what's happening in Korea. There's also been additional volatility connected to concerns about the debt levels of various countries across the world.
Unfortunately, no amount of planning can ever take into account what we call "life events." "Stuff" that comes at you from left-field, that you just can't fathom or factor into a planning scenario.
After all, who on earth ever would have thought something like 9/11 could possibly happen before it happened? The bottom line is, we still live in a world of uncertainty. Which means when it comes to your investment strategy, you need to have to have a strategy or game plan that you have faith, trust and confidence in.
At the same time, you must remember that no investment strategy, even ours, is perfect. But you have to be able to trust that strategy when the unexpected happens.
The problem is, without a plan and absent an investment strategy you have trust and confidence in, your emotions do take over, especially when you're in a heightened level of stress and anxiety. And when emotions take over they tend to lead to poor choices and poor decisions.
So it's best to have a system in place NOW that you have trust and confidence in, whether it's handled by a trusted professional like me or your own system. That's really one of the central guiding posts of all successful investors. If you look at people like Warren Buffet, they all have a system that they have trust and confidence in, even when it temporarily makes them 'look stupid'.
I remember back in the internet .com heyday, Warren Buffet was criticized and chastised when he didn't buy the first Internet stock. He was made out to be a sort of "industry tool" who was past his prime, not keeping up with the times. But he stuck with his system. And even though on a short-term basis it made him look 'stupid', look where he is today right back on top.
So when it comes your investments, you need to have a system that you have trust and confidence in. Because unfortunately, there will always be periods of uncertainty.
Events you can't predict are going to pop up out of nowhere. That's when you have to have a solid investment system that you trust. Because that will see you through the uncertain times and keep you on solid ground.
by: Brian Fricke
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