Monday, April 30, 2012

How to be?

Last 2 days ago, I had read an article talk about Investment vs Speculating. The article said that most of the investments are speculating because this game not control by ordinary people. He was gave a very good example, a developer sell a 1st phase of house always claimed that fully sold and use such excuse to increase price for launching the 2nd phase house. So, the price become not consistence then make a purchaser need spend unnecessary time to wait for the price up go back to ordinary level. Is that a fair game for investors? Such activities indirectly bring investors become as speculator.
Nevertheless some people still said I can hold until the price rise up but during such waiting period investors just can wait and then the return is zero. So, how to said this is a investment. The basic return for annual is negative and no steady income to against the inflation.

So, the article writer very smart. He is fully understand the theory of investment., I have to said I must respect him.