by | Jul 20, 2001 | Archives

A message from eClub advisor Steve Rosberg points out an economic fact you should not ignore.

Here is a reply from Steve about our last message on health and wealth.

			"Gary, your message on health and wealth comes just as I was
thinking that we should consider the incredible psychological impact a
recession has on investors. I am seeing
in Argentina, where we have now had 3 years of
recession, a level of depression and anxiety that
keeps people from seeing opportunity, let alone lead a
valuable life. Even if they have no personal economic
difficulties, they are seriously afflicted.

I think you can see the connection. As the wealth
bubble in US burst or fizzles, euphoria comes to an
end and despair could set in. To be forewarned is to
be forearmed."

Steve has brought a really important economic fact to light. We are surrounded, bombarded in fact, by media every day of our lives. This media is competing madly all the time for readers, viewers, or listeners. This competition (and the awareness of the public) forces the media seek as much shock value as they can to attract attention. Our main sources of day to day economic information are usually written with a slant about the recession or the boom we are in. This message is then magnified by gossip and rumor again and again. Most people react to this by pulling in (during a recession) and by overextending themselves (in a boom). Good businessmen and investors take exactly the opposite tact. Tomorrow you will receive the second session of International Business Made EZ and see why this is so wise. In the meantime the message here is:

		"Recessions and booms rarely affect more than the bottom 30% of an 
economy. Don't let them affect you mentally. Keep your health and your
attitude strong. These internal assets are the most powerful financial
tools of all! Ignore what others say. Don't get caught up in emotional
economic stampedes. Regional, national or even global recessions do not
have to affect you. In fact they are the best times of opportunity!

Until next message, good global investing and business!