Financial Crisis Or Opportunity?With the current so called financial crisis and credit crunch going on I would like to take a few moments to share my thoughts. For the shrewd investor this is a fantastic opportunity that comes around only once every 15 years or so. Thanks to the media confidence in the financial markets is falling faster than rocks falling from the sky. It is panic and hysteria that is fueling this, not logic or good reason. As soon as the media declare all is well again (and they will), prices will start to rise as they always do. If you behave in the same way that the majority behave, then you will get the same results that the majority gets (which here is losing money quickly right now). Buy when others are sellingDon’t panic, don’t lose your cool, be calm, be certain, and start looking for those opportunities that exist at present . In order to become wealthy you must have the nerve to buy when everybody else is selling, and to sell when everybody else is buying. Presently people are selling, that means now is the time to buy. If you are already in a position, sit tight. Don’t sell when everybody else is selling, you will only add to the confusion and panic, as well as lose your money.Look for Credit Crunch friendly companiesLook for quality companies that offer essential services, food, energy, fuel and so on. No matter how poor the economy becomes, people must still eat. Find companies with low debt and good turnover in these sectors. A company with low debt will be much better positioned to survive a reduction in credit. Avoid companies producing luxury items, these are the first things to go and these companies can really suffer. So can you if you invest in them!As you can see there are companies that tend to thrive in harsher economies, and they can be purchased at bargain prices right now. Make the most of this situation, become a part of the solution to this current crisis and profit handsomely to boot!
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