3rd August 2017

Plain English Finance: Are you Riding the Tiger’s Tail?

Regular readers will be aware of an ongoing and oft-repeated theme of mine:  Namely that, to a certain degree at least, you can run you financial affairs so that you shouldn’t need to worry overly about stock market crashes (or crashes in financial markets more generally).  As I’ve said on more than one occasion in the past:

"I believe that I can arrange my financial affairs such that I am comfortable that whether there is a massive crash or whether stock markets power ahead, my ability to meet my long-run financial goals will be largely unaffected. You should feel the same way too…"

Believing you can succeed with investment essentially regardless of what financial markets do is actually far more important than most people realise – for the simple reason that, if you do feel that way, you are very likely to actually invest.

I’ve said it before and I will say it again – there is plenty of evidence to support the contention that the number one reason that wealthy people are wealthy is that they are financially literate.  They understand financial products and make use of them.  Put another way - they are investors. 

Andrew Craig, Plain English Finance, Investments, Investment Commentary