You Have Ups and Downs? the Economy Too?

I cycle for exercise. The wheels of the bicycle go round and round. Hmmm ... why are we talking about my Sunday morning Rubberman bike rides?

Ooooohhh ... ok ... we are going to talk about cycles. Not only for exercise (bicycles). But also for our financial planning (economic cycles). For our investment (property cycles). Menstruation cycles ... no, no ... I will let my Gynaecologist friends write about this in their blog ... hehehe ... you should give them a chance too (to write about cycles).

You should expect, based on history, to undergo one depression and two recessions in your life-time. Your life-span is 75 years - if your don't misuse and abuse your body ... hehehe!

Of course, your personal depressions can be more (karaoke girl-friend left you, mistress left you, wife left you, kids left you, mummy left you, money left you, ...). Here, you should think about an economic depression. And economic recession.

What's the difference between an economic recession and an economic depression? You may realise that there's a recession, when your neighbour loses his job. A depression is when you lose your job. A depression is a more severe form of recession. You get more severe headaches (after finishing your severance package).

So, how can you avoid a recession, or a depression (worse, isn't it)? Simple, if you think it out logically ... don't have a job!

No job? "My daddy and mummy told me to study hard, and get a good job with security", you say to yourself. Well, with the present Information Age (and Knowledge) economy, a safe secure job is no more a reality if you are in developed countries like the United States of America.

In some countries, like "Malaysia - Truly Asia", you can still get a safe secure job in the (government) civil service. But whether it is a good job (in terms of salary and benefits), is subject to interpretation and your personal propensity to spend (economist's terms for whether you are a big spender or careful saver!).

If you don't have a job, what are you going to do? Be a hippie ? Well, that was in my time - in the 1960s. You were born too late, baby!

Robert Kiyosaki (and all the other millionaires too, I believe) recommends that you become an investor. "But ... but ... nobody told me to be one." Yes, no one asked you to be one because school teachers are employees. Maybe, one teacher in a million is an investor.

Anyway, it's never too late to learn. There are numerous training programs and seminars teaching you to be an investor. Property investment. Stock investment. They will teach you that there are monthly cycles, yearly cycles, ten-year cycles, etc. (Of course, the best for health is daily bi-cycle...hehehe! ... just to keep you awake).

When you have enough knowledge about cycles, about ups and downs, about booms and busts, you will be able to survive. If you are into properties, you make money whether the market is up or down. If you are into the stock market, or options trading, you will make your money - whether there's a boom or a bust.

Non-investors have a hard time, especially recently. In October, the TV showed some workers in the United States of America lamenting that they have lost 50% of their retirement savings (or investments), because of the stock market melt-down starting in September 2008. Robert Kiyosaki (and quite a few others, of course) knew that this economic depression would come.

What's the secret of successful investors? They have the knowledge - so you make sure you read books and attend training/seminars! Investors also learn how to manage risks (so that their investment risks are minimal or zero!).

The moral of the story? Up and downs is a fact of life. Of your life. Of the economic life. Of the business life. When you realise this - not only during the bust-time, but especially during the boom time - you prepare yourself (Be Prepared - your Boy Scout's motto ... remember?). Your life would then be plain sailing. Or smooth cycling (for road - compared to mountain - cyclists like me ... hehehe!).

I wish you Success in your undertakings, and Good Health and Wealth to you and your family. Take care!

P.S. I asked a property millionaire whether it is a bad time to invest in real estate, given the economic depression which is coming very very soon. He replied, "No. It simply means that we will have more raw materials (auctioned properties) to choose from, for our money-making machine."