Fear, Greed and Investing

And that is life. You put your money into stocks and mutual funds when you hear your friends and colleagues making it. Was it the fear that you would be left out if you do not get into the game? Was it greed to make as much as possible which spurs you to put money on a particular stock on in mutual funds?

Lately investment banks were making bundles by launching mutual funds with access to foreign markets particularly China. Many ignoramuses have been running to take out their fixed deposits to play this so-called ''cannot lose'' game. To them the China game is a winner. Get in and once you get your expected returns, sell out. As easy as taking candy from a baby!

However, those who made money in the stocks and the mutual funds came in early, sometime in 2006 before the sub-prime melt-down started in July 2007. They have got their money and have run. New lambs are now drawn in. Will they make it or will they be led to the slaughterhouse?

The feng-shui masters believe that the rat, the monkey and the dragons will make it big this year. Others should remain neutral to new investments this year to avoid losses.

Heartsong