The Free Market
I hope that you had a great Memorial holiday weekend.
The regulars of this blog know that I keep talking about the Free Market. I am a firm believer in the free-market process & its evolution. Whenever I hear someone bashing the big corporation, I wonder if they truly mean what they say. Many view the big corporation as the big bad wolf that only has self-interest and is bad for the economy and its people. I ask you, do you really believe that? Those who do, I feel sorry for them. It must be tough to live in a society in which you believe that the government is bad and its main engine (big companies) are out to get them too. It is no different than thinking that your own parents are bad. How sad ...
Let me be clear. I am the first to admit that we are not perfect. Our government contains some bad apples, some corporations are run by crooks and even some judicial judges are corrupt! But if you step back and look at the total, we look damn good over all! In fact, we are so good that most people in this world want to live in this country even with a major risk coming here.
The main point is that free-market works.
And it works very very well indeed.
Case in point: During the Katrina disaster, the main agency that is responsible for the relief effort (FEMA) could not handle the pressure. The FEMA (not a result of free- market) did not have the system to handle such a disaster. Guess who stepped up to handle the crisis in a timely manner without being asked. Big public corporations. The Walmart, GE, Lowes, FedEx, Coca-Cola and many other companies (direct result of free-market) came in to help. Just to give you an idea, Walmart carries more goods to all fifty states and its townships without delay every single day. As soon as Walmart decided to help, waters and other necessary goods arrived within 24 hours, sharp. This is just one example of free-market at work. A problem that took many weeks and months to solve, the free-market system took a few days. Done.
Free market also means that it will go up and down. We have been enjoying the ups for a while and we are now in the down cycle. We will have mini ups within the down cycle as well. So why not totally abandon the market during the downs? Because no one knows when it will go up sharply.
I am willing to bet that as soon as you sell, the market will jump up.
This has happened too many times for me.
I am sticking my guns for now.
In fact I am still buying.
As longs as I buy it at a price where one year from now it will look cheap, I buy. Who cares if it goes down 30% from your buy point? Great. Buy some more. When your home price go down 30%, do you sell? Seriously, if my condominium price were to go down 30% from where I bought it, I will borrow money and buy a second unit. You should too.
Buy or hold stocks in our portfolio.
Do not sell unless you need the money.
By the way, if you needed your money this soon, you should not have bought it in the first place. With every buys in our portfolio, you need to have a minimum of 1-2 year commitment.
Let your seeds have time to grow and give you beautiful flowers and juicy fruits. know this: Some of our seeds will not mature - I guarantee it.
Some will just whither and die.
That's a proof that free-market is well and alive.
Only the strong survive - no mercy here.
One needs to learn to enjoy loosing as much as gaining. Good night.
The regulars of this blog know that I keep talking about the Free Market. I am a firm believer in the free-market process & its evolution. Whenever I hear someone bashing the big corporation, I wonder if they truly mean what they say. Many view the big corporation as the big bad wolf that only has self-interest and is bad for the economy and its people. I ask you, do you really believe that? Those who do, I feel sorry for them. It must be tough to live in a society in which you believe that the government is bad and its main engine (big companies) are out to get them too. It is no different than thinking that your own parents are bad. How sad ...
Let me be clear. I am the first to admit that we are not perfect. Our government contains some bad apples, some corporations are run by crooks and even some judicial judges are corrupt! But if you step back and look at the total, we look damn good over all! In fact, we are so good that most people in this world want to live in this country even with a major risk coming here.
The main point is that free-market works.
And it works very very well indeed.
Case in point: During the Katrina disaster, the main agency that is responsible for the relief effort (FEMA) could not handle the pressure. The FEMA (not a result of free- market) did not have the system to handle such a disaster. Guess who stepped up to handle the crisis in a timely manner without being asked. Big public corporations. The Walmart, GE, Lowes, FedEx, Coca-Cola and many other companies (direct result of free-market) came in to help. Just to give you an idea, Walmart carries more goods to all fifty states and its townships without delay every single day. As soon as Walmart decided to help, waters and other necessary goods arrived within 24 hours, sharp. This is just one example of free-market at work. A problem that took many weeks and months to solve, the free-market system took a few days. Done.
Free market also means that it will go up and down. We have been enjoying the ups for a while and we are now in the down cycle. We will have mini ups within the down cycle as well. So why not totally abandon the market during the downs? Because no one knows when it will go up sharply.
I am willing to bet that as soon as you sell, the market will jump up.
This has happened too many times for me.
I am sticking my guns for now.
In fact I am still buying.
As longs as I buy it at a price where one year from now it will look cheap, I buy. Who cares if it goes down 30% from your buy point? Great. Buy some more. When your home price go down 30%, do you sell? Seriously, if my condominium price were to go down 30% from where I bought it, I will borrow money and buy a second unit. You should too.
Buy or hold stocks in our portfolio.
Do not sell unless you need the money.
By the way, if you needed your money this soon, you should not have bought it in the first place. With every buys in our portfolio, you need to have a minimum of 1-2 year commitment.
Let your seeds have time to grow and give you beautiful flowers and juicy fruits. know this: Some of our seeds will not mature - I guarantee it.
Some will just whither and die.
That's a proof that free-market is well and alive.
Only the strong survive - no mercy here.
One needs to learn to enjoy loosing as much as gaining. Good night.
posted by Jaewoo | 10:26 PM
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