A video about how the Sub-Prime bubble came about

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source: http://crisisofcredit.com/

If you still have no idea why our world is in a financial crisis here's a video from Crisis of Credit that explains the story in a informative and visualized presentation.



The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Always remember that when risk is not manage and when greed creeps in the likelihood of collapse is greater. It is each and everyone's responsibility to make sure that the financial system is strong. Invest in the right companies, save for emergencies, and still spend on basic needs to keep money flowing in cycle. When one stops and hoards money others will be affected.

Invest wisely and spend wisely as well.

Revisiting my first post: Is it a good time to invest now?

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source: http://www.stockginger.com

It is worth reading an old post. 

Back then the situation is pretty much similar that is we are in the middle of a financial crisis. (Click here to read my very first post. Please leave your comments on how different is today's crisis from the last). My question was "Why invest?"

Now this is my question: Is it a good time to invest now?

Yup the stock market had a roller coaster ride. The Philippine Stock Market reached its highest two or three times before it succumb to its current level due to US debt crisis. You might wonder why am I asking if it is the right time to invest. Well as I recall again there is no right time to invest because "now" is the right time to invest. But it is so scary out there don't you think. The DOW dive nearly 600 points down then recovered back then went down again, it is so risky and still why do I say it is a good time to invest now.

source: http://www.bloomberg.com/apps/quote?ticker=INDU:IND

Now probably you have to ask me direct, Louis why is it a good time to invest now?

Here are my reasons:

1. Stock prices of blue chips companies went down therefore you

    are getting them at a bargain.

2. The current financial crisis is of the US not of the world yet. So it

   may have affected other markets but surely it is temporary as it

   has always been. So take advantage of the time.

3. Stocks of true value will come out in such situations. Those who

   are really just mere stocks will fall but those who truly deliver 

   profitability amidst crisis will stand out.

4. If you already have stocks it is a good time for you to average

    down big time. 

So what is your move now? Probably you might say you'll think about it. And that is good as well. In stock investing you always have the final word. No one can tell you what to do but only you as an investor have to push that buy button or if you prefer to sell then sell button.

source: http://iamamentallychallengedteen.blogspot.com

So is it really a good time to invest now? Would appreciate sharing your thoughts by leaving comments below.