Buy Low Sell High
Jun 15th, 2009 by Wes
Most of us have heard the story of the lemmings. Wikipedia describes their behavior as such:
“On occasion, and particularly in the case of the Norway lemmings in Scandinavia, large migrating groups will reach a cliff overlooking the ocean. They will stop until the urge to press on causes them to jump off the cliff and start swimming, sometimes to exhaustion and death.”
Additional research has shown that the lemming behavior is a result of cycles.
“Lemmings of northern Norway are one of the few vertebrates who reproduce so quickly that their population fluctuations are chaotic,rather than following linear growth to a carrying capacity or regular oscillations. It is unknown why lemming populations fluctuate with such variance roughly every four years, before plummeting to near extinction.”
Economic and Business models have fluctuations and oscillations. It has become apparent to some economists that the oscillations of our current economic models are occurring more rapidly and more intensely. The highs and lows are more pronounced and the frequency is increasing.
I will predict that the world is near the bottom of the financial crisis of 2008 and we will again experience a resurgence of capital.
“there is now some evidence to suggest that the predator’s population may be more closely involved in changing the lemming population.”
The world’s coffers were built up from 2001 to 2007 and the predators, depending on which conspiracy theory you abide by, took advantage of the opportunity to seize the wealth. My current belief is that the Federal Reserve and the IMF were the predators.
Lesson: Those who are selling now are selling at the bottom and those who buy now are buying at the bottom. Now is the time to buy.
We will highlight a property in Nicaragua next week as an example.
Remember: “Due to their association with this odd behavior, lemming suicide is a frequently-used metaphor in reference to people who go along unquestioningly with popular opinion, with potentially dangerous or fatal consequences.”
Be cautious of what the media is telling you to do with your money. Check and see if the suggestions are moving you toward buying something at its HIGH. Are you going along unquestioningly?
