¹ But the thing that you'll notice consistently
about big market declines is that they're almost always preceded by big increases.
Not exact matches
In the intro, I go into some pertinent publishing news: Kobo has become Tolino's tech partner, which makes it a much
bigger player in the growing German ebook
market; Amazon is opening a bookstore in New York City; while Barnes & Noble reported a 9 %
decline in sales over the holiday period, there's discussion on the impact of the All Romance Ebooks closure, and once again, I talk
about the importance of multiple streams of income, as well as multi - currency / multi-country income in order to weather the changes undoubtedly ahead and hedge against potential economic changes.
It's another thing, though, to live through such periods and stick with such a
big stake in stocks when you see the value of your life savings
declining rapidly and all you hear is gloom and doom
about the prospects for the
market.
Here's the problem with using valuation to predict
big declines: The
market has rallied
about 45 % since Spitznagel published his paper in May 2012.
And what I'm talking
about is taking huge risks like putting all of your money into a couple of stocks and one of them winds up going into bankruptcy, or we have a
big market decline, You are over invested in stocks, you panic when the
market goes down, you lock in your losses and you've given up money that you will never get back.
To understand how to be happy in life, Charlie will study how to make life miserable; to examine how business become
big and strong, Charlie first studies how businesses
decline and die; most people care more
about how to succeed in the stock
market, Charlie is most concerned
about why most have failed in the stock
market.
And, if you do have a lump sum to invest and you're worried
about a
market drop, diversify your money into several different asset classes to minimize the impact of a
big decline in one asset class.