Financial Freedom SG

Some people have an in built defense mechanism that stops them from investing. Their heads shake when you talk to them about investment.

"Danger!", "Market Drops 50%", "Investors loses their shirts!" are what they see and feel.

This isn't helped by stories that they have read about people who lost fortunes in the stock markets through speculation. Nor by the jargon loaded commentaries you see on financial newspaper and on tv.

Stag, short, contra, long, neutral, passive, active, EMH, IPOs, breakout etc

Why can't a financial reporter/consultant just speak in plain simple English?

My theory is that they need to confuse people, and make financial products seem so complicated that you need their help. Help from the same financial consultants and reporters who determine for you what you buy, keep or sell.

The more they can confuse you, the more business they make.

At its heart, the stock market is just a place where companies raise money to expand their business. '

And where investors who buy a piece of these companies get a slice of the rewards when these companies do well. Of course, if I had invested in the Enrons or Lehman Brothers and I would get wiped out.

Then again, if you had follow Peter Lynch and gotten just one ten bagger from a stock portfolio of 10 stocks, you would have done well even if one of the 10 stocks turn out to be an Enron. A 10% total loss versus a 100% gain from one stock assuming the rest of the eight stocks remains the same.

Much better odds than gambling in the newly opened casinos don't you think?