Investing

What to Invest In When You Know Nothing About Investing

It’s no secret that many people have lost considerable amounts of money in the last few years. The news is full of heart wrenching tales of 20-year employees without jobs, seniors without pensions, families without homes, and people without hope. Sadly, most of these people will never recover.

Fortunately, for some, there is a chance to not only recover but to thrive in the years ahead. For most, the idea of investing in anything these days is a pretty scary proposition. But for those few who can overcome their fears and learn when, how, and what to invest in, now is the time. By learning to identify what to invest in, you can capitalize on the opportunities that have always presented themselves in troubled financial times.

Despite the stories of huge financial losses not everyone is going broke. Oh, no. What’s happening is not a loss of wealth but a transfer of wealth. And that transfer of wealth is what you need to understand if you are going to learn what to invest in now – and in the future. The fact is, the transfer of wealth is not a new phenomenon; it is as old as mankind itself. And it’s all about how humans behave.

So what does all this have to do with finding out what to invest in? What experts could tell you (but probably won’t) is that by understanding how people behave, knowledgeable investors can study economic trends and predict where money will flow and how fast. Warren Buffet may be the greatest predictor of human behavior we have today. And what does he do with this skill? He determines what to invest in.

Right now, the world is facing the greatest transfer of wealth in its history. In fact, it’s already started, but there’s much more ahead. The question is where will each of us stand as this historic financial upheaval finally ends? Understanding human nature leads to understanding what to invest in which leads to our personal wealth. Those without this knowledge will not reap the benefits – in fact, they may lose everything if they haven’t already.

If you know absolutely nothing about investing, now is the time to learn. If you want to know what to invest in you must learn not only how to use financial information but how to correctly assess how markets will change based on human behaviors. It may sound esoteric but it’s really quite practical. If you have a set of circumstances and you understand how people are likely to react to them, you can determine what will happen.

You might not be aware of the amazing fact that the Great Depression not only resulted in crushing poverty for many but also saw the emergence of more self-made millionaires than ever before in history. And that includes right up until today. So what made the difference between those who suffered and those who prospered? Knowing what was happening and how people would react helped those who succeeded understand what to invest in.

The simple answer to the question of what to invest in is this: you. You can learn the basics of financial investing but to apply that knowledge successfully, you should also learn how people react to changing circumstances. Once you’ve done that, you can pretty much decide what to invest in yourself.