Tuesday, August 21, 2007

Terrorism and Investing

Here's an interesting article on How Does Terrorism Affect Your Trading.

The focus is on trading of stocks and currencies, which is certainly not my focus, but it's still an interesting read.

And although I don't see a mention of income investing itself, it does discuss long term investing strategies in relation to terrorism attacks. I'd say this - if you're investing for income, you're most likely banking on common human needs and desires. Coca-Cola, not software. Snack food, not biotechnology. Electric lights, not GPS satellites.

Terrorist attacks can certainly harm economies -- as September 11 did to the United States -- but as long as we're alive, we're going to keep on consuming basic commodities. Following September 11, business in the U.S. slowed dramatically -- car sales, restaurant sales and so on. Yet people kept using electric current to watch the news on TV and to eat Hershey's chocolate to deal with the stress.



Financial Rebel

I found an interesting blog called Financial Rebel.

I didn't find anything particular "rebellious" about it, but he gives his comments and commentary on the market and various company stocks and their prospects. Some people have found his article on how to own gold through using exchange traded funds useful.

Myself, I favor joining in with businesses that serve human needs, rather than expecting a chunk of metal to pay me money. That could include something such as the Mergent Broad Dividend Achievers Index.

One thing caught my eye in his comments on the current stock market -- it's quite volatile, and that's an open invitation to trading. I agree, but notice that he doesn't tell you how to trade volatility.

If you think that in the current market you want to be a day trader, all I can say is, good luck. You don't need to be reading this blog, you need to be reading the Help Wanted Ads.

But although I'm know expert, I know that the words "high volatility" are music to the ears of an options trader. That means it's tell to sell volality, because the price is high. You do that by selling puts and calls. There are relatively, safe and conservative ways to do that, and after I write and publish my book on investing for income, I'll tell people how to get rich quick by selling calls and puts.