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Please stop using all capital letters! I will edit your posting …
As far as I know there are no Costa Rica banks offering 11% in dollars, maybe in colones but certainly not in dollars and if any organization is offering you 11% I can guarantee you that it’s NOT ‘safe.’
Scott Oliver – Founder
WeLoveCostaRica.ocmThis morning, Asian stock markets are crashing. A similar reaction is expected from the markets on this side of the planet. What do you do with any money you have? I would think preservation of capital would be more urgent than increasing capital at this momnent in time.
Obama is saying at this moment “Don’t panic”. If the captain of the Titanic is advising you not to panic when the ship is tilting forward at a 45 degree angle, I would suggest you ignore that advice. Instead of calmly trying to look for your money’s worth in the voyage by seeking a free drink at the bar, knock down anyone in your path to the nearest life boat,
I agree… but it’s even smarter to preserve your capital and be able to eat it! LOL
Funny how “those in the know” are trying to tell people not to panic and that with prices so far down that NOW might be a good time to buy into this market? Isn’t this the same advice most of them have been giving as you’ve witnessed 40% of your investments vaporize over the past year? Or how about those folks telling you to go out and spend the money you do have left? Are they out of their minds?
As for a “safe” 11% investment…. there isn’t one… so don’t waste your time! I do think however if things get as bad as they appear now… you might see an 11% return on that canned tuna! Think about it… at a dollar a can…. prices only have to go up 11 cents! Well within the relm of possibility! And if not… you can always barter with it… or crack open a can to survive!
Simple answer is… the advice is coming from those in the market with a vested interest… and those that need YOU to buy in for them to get out! Or those that need to to create a market to keep their investments in play. These folks have a LOT more to lose than you do… but the big difference is… they’re living a pretty nice lifestyle that they’ll do anything to keep… for you… it’s just a matter of basic survival!
Don’t buy into the hype… keep your head down and keep your powder dry! Ride this one out… be smart… be prepared… just like the advice given before a storm… and this storm is one that many people (including Scott) told you about with plenty of time to make the right moves!
How anyone using fundamental analysis, technical analysis or both could ever predict what the market will do years in advance is beyond me. I have a hard enough time predicting what the market will do in the next ten seconds, let alone the next ten years. The technique of buy and hold is not my idea of a smart way to grow capital and yet, millions of Americans bought into that.
It still all boils down to market timing and the only way to have success doing that is to be actively, knowledgeably and intensively involved. Otherwise, put your bucks into a safe bank with the FED guaranatee…and even then, keep a good stock of canned tuna.I have NO IDEA how safe CR banking is. I only have a small account in a CR bank. I am being told to seriously be concerned about the survival of the U.S. banking system even if it IS nationalized. And what good would 11% earnings be on ANY currency if the world currency market turns to “basura”.
Edited on Mar 09, 2009 09:04
The spike in the stock market that occurred over the past 15 years is scary if you were betting all-in in 2007. Take a look at the dow jones and there was a huge uptick that occurred in the mid-late 90’s and mostly everyone got onboard calculating how much they would have for an early retirement. If you look at the track that the market was taking in the early-mid 90’s….slow but steady pace the market should be around 6000 – 6500. If you ask me I think the bottom is here or very close. I don’t think it can go much lower. I have always been a very conservative person even when friends and family have mentioned “the stock market has been very good to me lately”.
Ask Scott what he thinks about “how low the market can go”. He once remarked that people have no idea how low it can go.
Technical indicators suggest it could drop quite a bit more. If the market leads the economy by six months, we are looking at double digit unemployment by fall. True and actual unemployment in the States is 14.7 percent right now, not the 8.1 official number. If this doubles in size, as it very well could, actual unemployment will exceed 25%. The Great Depression had a similar number and it took a decade and a war to get out of that mess. And some say this could be worse. I hate to keep going back to the canned tuna argument, but ……..
Edited on Mar 10, 2009 03:57
Equally surprising is that Uncle Sam thinks he can collect taxes on it! So I trade a dozen eggs for some of your cheese… and the IRS wants a cut! Really amazing! Have they not yet figured out how bad things are and that folks are just trying to survive! No wonder people are running away from the US… bailouts for everyone…. but the poor working man doing his best to pay his bills and do the right thing! Just wait until the bill for all these bailouts gets dumped on the lap of the US taxpayer… there’s going to be a revolution! And I for one think it’s long overdue!
What I believe will happen, is this economic episode will change the way the professional segment of the population saves. The downside is that states with sales taxes as their primary tax base (like WA & Seattle), will have to impose an income tax out of raw necessity, but maintain a portion of the sales tax for individual cities and library + park districts. After a decade, you will be paying 50% more in local taxes. Those of us on the 120+ side of the IQ who understand economics, will figure out a way to live on 1/2 of what we earn for the next 5-10 years and learn to be self-sufficient in order to fund our own bail out. Unless you win the Lotto, then I am on el primer avion en la manana.
“Those of us on the 120+ side of the IQ who understand economics, will figure out a way to live on 1/2 of what we earn for the next 5-10 years and learn to be self-sufficient in order to fund our own bail out.”
Grb1063…. Isn’t that why we all became so interested in Costa Rica? LOL And most of us were 5-10 years ahead of the curve on where the world economy and society was going and made the right moves before the poop hit the fan! I see CR as a place where these goals are not only possible but are a reality without living like the UniBomber! 🙂
As for taxes… I couldn’t agree with you more! Government is in a panic at the moment trying to find every possible way to hit you for revenue… they use so many different angles (Taxes, fees, charges, surcharges, and countless other “indirect” taxes) these days that if you took the time to figure out how much of YOUR income YOU really get to keep… you’d be spending what you had left to arm yourself and join the revolution!
Edited on Mar 11, 2009 07:11
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