So I was meeting with Master Song again and he opened my eyes to another cool and simple thing. Here is the summary of our long meeting.
1. US market takes a hit (ie. new random war starts, Donald Trump sneezes, Bill Gates farts)
2. Foreign markets feel the fluctuation exponentially more (he had a reason for this but I can't remember the details)
3. Foreign markets go down a lot, US not so bad.
4. Canadian dollar = pretty good. So, us Canadians keep our eyes on crashing solid markets. Our example was Hong Kong.
5. We buy index (I don't even know how to write the verb....we 'buy on the index' we 'invest in the index"??) in that market
6. US market turns around and goes up single digit percentage while the HK market double digit recovers.
So you're thinking... cool. I just saw double digit growth! But that's not all. Sometimes the currency can also work in your favour. During these tricky times, often their currency takes a hit simultaneously. So you buy their crappy market prices with strong Canadian loonster against their poopy currency and you gain twice.
There you go. Now, hopefully I won't be like the average J...person and just watch these things slip me by!
B.L.I.P. Heros
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4 comments:
It's true, it's all true. People go crazy when there's fear in the market. Especially when it they are not in the know (ie: in a different country). Therefore, when the fear ends, people buy back in slowly, but surely, and over a few months you can definitely make some double bubble action. And buying a foreign currency isn't a bad idea right now. The CDN buck went up so fast with no real explanation, it will have to correct itself eventually. In the meantime of course, mortgage rates should go down. But our buck will have to go down to sustain our export levels.
As I said before, our strong dollar only benefits people who are sitting on a pile of cash. Other than that, it's bad fo bizzness.
Mr.T #2 (number bot)
There is a phenomenon in economics known as ... actually I don't know, but it's a false sense of a security or insecurity created by the people.
When people see other people dropping out, then they tend to follow and vice versa. If there are more people in the market, then there is an assumption that the risk is low since people are generally risk averse.
So, the risk is very difficult to calculate based on what people are doing.
The same goes for life in general. Just because someone makes a promise or acts assuredly, does not mean that they are incapable of betrayal etc. People are people. Sinners are sinners.
The risk factor always exists, and it is important to find out as much about something on a deep level. Even so, you can get burned.
Disposable Joe has been disposed of, and will be on hiatus for a while. Everything in this world is finite. Even you and me.
P.S. That's where the name comes from.
Hey Sustainable Wayne, what is the major industry of N. Korea? How stable is their dollar? How long has the market been operating? Is there a reason you want to invest so bad? I mean, heh heh, you kinda invested in Korea the day you got married.
Taylor. N. Korea? Whachoo been smokin', yo?
Seems like you are both in agreement with me for the first time. I feel validated. I feel loved.
The only problem with the US right now is that no one is sure where their bottom is. hha. That was funny when I wrote that.
Not this bottom --> (_!_)
The bottom of their slide.
Strong dollar is also good for these currency games.
let's take the advice of Master Song - if you are not fully aware and have not done your homework then you are in no position to invest in something. From my own failures, I've learned this is true. There is a balance between stupid zeal and analysis paralysis.
So our job is to take one of these ideas and follow the concept and learn and become aware. I presented this post because I think it's worth looking into. I'm glad you agree.
I wonder how you go about investing in the index of a foreign markets. I know you need a broker in that market. I wonder if you can do so online. probably.
Joe. The great part about market impact is that because of these lemmings, and for the reasons you mentioned, I think you can actually profit from them! I would love to finally profit off those lemmings. Remember them? I think they are the same people that all went out and bought MC Hammer pants and cross colours while losers like me pointed and laughed (in thought only, of course, lest we be beat down).
Kriss Kross'll make you jump!
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