Category — Financial Tips

First, I want to say that I’m not an expert when it comes to investment. However, I wanted to share this information I picked up from a seminar. This is one of the indicators to note when you want to invest and I think it would be useful if you are a contrarian investor. If you are the “go with the flow” investor, then probably this won’t be useful.

The Fear Factor chart better known as the Volatility Index, shows how volatile the market is. The higher the index, the more volatile, the more it indicates that investor are feeling fearful. The lower the index, the less volatile and investors are feeling safe.

While there is reason to invest in stock that are low in price, this does not mean investing blindly. You have to know the underlying company’s financial state. Is the fear well founded or irrational. People flee a stock for a reason. However, for good companies during times of uncertainty, when prices have dropped, it may make sense to invest.

Warren Buffett says "Be fearful when others are greedy; be greedy when others are fearful." This doesn’t mean be lazy!

Like I said in the early part of the post, this index is an Indicator.

You can see the chart at Yahoo Finance

I did an interesting exercise a few months ago. The exercise helped me relook at goals versus desires. I know that there are ton’s of articles and books and numerous things people talk about Goals. How you must have them, looking at them etc.

For this past year, although I wrote down some goals at the beginning of 2009, I didn’t pay much attention to them. In my last article, I share with you my insights to goals for me. This year, I really didn’t pay attention at all to what I wrote down The result at years end is that my income dropped off quite a bit. And I really need to focus in 2010 or else the income will drop further.

The reason for the drop is I’m trying to redesign myself with regards to work and income. Anyhoooow, with the exercise I did several months ago and now that I know I need to focus, I brought out the good ole “Goal Card”. The one the successful people always tell you to carry and look at every day several times a day.

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