This is one of my favourite article to explain the meaning of investing smartly.
Taking the analogy of a plane, we have to establish where you are going and how to get there. In other words, you need to know your destination (your goal, your aim) and how much time you need to reach there.
When you are on board a plane, you are exposing yourself to risks as a passenger. But of coz we can so-called reduced the risks by choosing a better track-record airlines. You are unable to choose who you want to be your pilot, but in financial terms, you can have the option to find a good financial planner to serve you.
Sometimes, we face turbulence during airborne. But you also will realise that the turbulence doesn't last very long. Once the plane is out of the air pocket, it will fly smoothly again.
The current financial crisis is the turbulence in our investment horizon. Investors can expect the market to be volatile. The market will eventually recover, but we just need to sit tight and ride out the market turbulence.
Remember, don't jump out of the plane without wearing your parachute! You may lose more than what you can gain back. Think twice.
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