Even though the economy is in bad shape you can still find ways to protect yourself from the recession. You can still shift your money to government bond. When we are in a recession people tend to want to put their money in a safe place. You can use Forex to trade currency, but I don’t know much about it. I will leave to someone who has strong understanding of it.

Buying A High Yield Stocks
When I think about this approach, I have to tell you I don’t like it. I think owning company that pay high dividend yield in a taxable account doesn’t make sense very much. Would it be no different than owning a government sponsor bond? Where do you shift your money into when we are in a recession? I think owning high paying dividend stocks in a ROTH IRA make more sense because you don’t pay tax on that yield. I still own (PFE) Pfizer in my ROTH IRA account for long term. If your a large corporation and you can’t come up with a new drugs, then I think that is stupid. I believe that (PFE) Pfizer have the money and brainpower to come up with new drugs.

Shifting Your Portfolio To Bond
Do you think that shifting to commodity would be the ticket to fight inflation? I guess it would make sense if you got in early when commodity was cheap. When Treasury Bond is somewhere between 4 to 5 percent according to ValuBond that is not much at all, because it can’t even beat inflation now. Should you shift some of your portfolio to Treasury Bond? I guess you could shift some of your portfolio to government bond since you’re back by the government 100 percent.

Cash Is King
I think that putting your money in a online saving account would make some sense because you are safe from any market shift except the interest you get from it. You can find which banks offer the most rate by visiting bankrate.com. You also have to think about inflation because it is decreasing your buying power; plus you would have to pay tax from the interest in your saving account. This stuff is very confusing.

Final Thought
I don’t know what the best solution would be best but I am going to do what I been doing. I am going to buy more of what people dump. Yup, I am digging in the trash for the stocks that would be a comeback. If I had bought Sear Holding when people were dumping it and it was around at $10 a share, then I would have made a big profit from it. I was dumb back then not to recognize a business. When people only look at stock quote, they forget how much the business is worth.

Others Interesting Articles…

The Recession Will Be Over Next Year
Sell Everything Buy Google I’m Joking
Not Waiting Until The Ship Sank

What should you do when oil is up to $140 a barrel? Should you sell your stock because the Dow is down 400 points? When I look back on my past investing, I realize that I usually buy when everyone panic or scare from what happening with the market. Do you think I am stupid when everyone is dumping financial stock but I am buying more of it?

The 1929 Depression
If I remember my history correctly, this is not the first time financial were in trouble. During 1929 depression home could be bought for a few thousands dollar compare to today. The banks were closing and not opening to consumers because they don’t have any money for them to redrew.

The deposits dry up because banks used those deposit to bet on the stock market. When President Roosevelt came into power and created the New Deal campaign; the economy got back on it feet.

The Past Cannot Be Used
The past cannot be uses to determine the future because the condition are not the same. What we can do is learn from it so that it does not repeat. Why do I say that? We can see a pattern on how the market behaves but we cannot be 100% sure. I don’t believe that in time things will sort itself. What must be done is to have a leader like Roosevelt that can solve problems. Nobody want a leader that think things will sort itself out while he is having a party at his Hampton home.

Final Thought
I think that panicking is the worst thing you can do when the house is on fire. What you must do is to be calm and try to find a way out. Panicking wouldn’t do you any good since you already lost money on your 401k or stocks. Should you sell out and take the lost or buy more? The question I should ask is can the company you owned weather the storm? If the company you owned cannot weather the storm like Country Wide then there is no reason to be dreaming and hoping.

I sometime second-guess myself, is my decision right when I buy or sell? You are right when it is correct. You are wrong when you miscalculated. What did I learn from my teachers? I learn that I must not look at stock quote everyday. Does it matter if you gain or lost every week? Do you have the confidence in yourself to bet on what you think is your best decision.

The Stock Price Goes Up
Dammit, I sold it too soon the stock price for Burlington Northern Santa Fe still goes up. Did I make a mistake somewhere? I believe you have to ask yourself why you want to sell it the first place? Do you sell it because you think the stock is already at premium, and you want to cash out? How can you receive the maximum pay out without fearing that it going to go down?

My teacher only has one word to tell me, if the company is still growing why sell? I guess he meant if the outlook is still strong and the company is still growing why sell out so quickly. What about the people that sold Google at $100 dollars? They must be feeling stupid to sell out so quickly. What do you think?

The Stock Price Goes Down
I should have waited a while before buying Wachovia. I know that banks would have more trouble ahead because of the mortgage mess. I still think it still difficult to time the market on when it going to go up or down. If I thought that gas was going to go up then I should have bought Exxon Mobil at 30 a share back then. What do you think how do you time the market?

Final Thought
There is always a lesson to be learned. I believe that you shouldn’t buy because some dumb dumb upgraded the stock to buy. I don’t think that you should follow Mr. Market day to day. I must have more confidence because there is no right and wrong; but only a lesson to be learns.

I remember asking my friend for $4000 so I can buy Visa at it IPO. He told me you must be out of your mind. Don’t you know you can lose money in the stock market? I just wanted to win; I didn’t let the fear of losing stop me. My friend didn’t have the courage to bet because he fears of losing the $4000. Rich people tame the cobra, while poor people run from it.

Fear Is Your Obstacles
Fear is what keeps poor people from being wealthy. They don’t like to take risk because they fear of losing. I take risk every time when I travel. If I fall asleep while driving, then that could be the end of me. Who will my money go to if that happens? If you’re telling yourself I can’t beat him, then you wouldn’t be able to beat him. The reason is that you accepted the defeat. You will be a loser that nobody cares. Is that how you want to live your life?

Poor People Will Always Be Poor
You don’t have to be poor because you have a choice. Do you want to be poor or wealthy? I am sure that 100 percent would say wealthy. How do you do it then? First you wouldn’t be wealthy if you keep fearing the obstacles that in your path. How can I be like John Chow making $30,000 a month? Don’t fear John Chow, you must learn from John Chow! If you use John as a model, and telling yourself I am committed to be like John. Don’t tell yourself that you’re going to be like John Chow, you have to be committed to be like John Chow.

You Gave Up Because You Accepted Defeat
You started a blog for 5 months and you hardly have any reader or members. You decide to give up on blogging because it takes to much time such as creating contents and marketing yourself. The problem is that you did something wrong and you didn’t know what you did wrong. That might be the reason why your blog is not going anywhere. I remember giving up on investing because I lost $500 on stocks and commission. I didn’t invest for a year, and then I decide to come back to investing. I had to learn from my mistakes.

Final Thought
If you fear the obstacles that in your path no matter how big or small, then you will be a loser for the rest of your life. You can’t be wealthy if you just playing it safe 100 percent of the time. Put your hand on your head, and tell yourself “I am committed to being wealthy.”

Other Interesting Articles

• Overcoming Your Obstacles
• The Five Ws
• The Difference Between A Wise Man and A Fool

There are people that work 9 to 5 for their entire life. There are people that want to make something of themselves. If you just work 9 to 5, then that is what you set your life to be. If you want to start something, then you pursuing your vision. I believe there are 3 types of mindset that people have.

The Hopeful Type
This type of people has their mindset on winning the lottery. They think that if they win the lottery then they can buy anything they want. The chance of you winning the Power Ball Jackpot is 7,059,052 millions. I don’t think the odds are in my favorite. You’re only gambling on one thing that is LUCK. I will gamble on luck but I will also have backup in case I never hit the Power Ball Jackpot.

The 9 to 5 Type
This type of people just want to find a nice paying job that will support their family. They don’t want to start any business; they just want to work and save for retirement from working 9 to 5. You can still be successful but if you don’t have a college degree or know anyone, then you will find only low paying job. I would take experience more than college degree any day. The reason I couldn’t find any good paying job was I didn’t have any experience programming in the real world.

The Visionary Type
This type of people has a vision of creating something. They work hard and never stop on how many failed attempts. The Visionary never stop they just keep going and going like the Energizer Bunny. They believe that you have to sell yourself before you can sell anything. They don’t listen to the negative comments or suggestions from the 9 to 5 type. The Visionary Type wants to prove that they can be somebody. They maintain their integrity and vision no matter how long it take.

Final Thought
You probably want to ask so Cheesecake what type of mindset do you have? I have the mindset of the visionary. In high school, I always wanted to start my own Internet business since I was 14. I try to create a game website where kids can play like Yahoo! Games, but it never took off because I couldn’t find anyone to support the idea. If you want to make something out of your life and dare to be difference, then you should never give up on your dream, no many how many failed attempts you have. If you like the blog then please subscribe to the feed to get daily updates otherwise no harm done