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Aug 21

Are there any safe investments today? 1

Due to the global financial crisis of the past year, this has become the key question on everyone’s minds these days.
The really simple answer is: investments today are as safe as they’ve always been.

There have always been snake oil salesmen, fortune tellers, and wandering story tellers able to talk (or print) up an elaborate story of opulence and wealth. Good fortune almost always comes to the teller; but in the long run, those seeking guidance and following the advice rarely fare as well.

Even those who are deemed completely ‘above board’, ‘transparent’ and ‘ethical’, often devise and negotiate terms that allocate disproportionate sums for those able to dictate the terms of the transaction, while leaving crumbs for the rest of the stake holders.

To better understand and actually determine the unspoken and unwritten (i.e. hidden) motives, read Jeff Hamilton’s “Investment and Financing Strategies: Knowing When Angel Investing Is Good for Investor and Business Alike”. The paper is available as an instant download, under the downloads tab on the technology-leadership.com web site.

This paper outlines how investors can be ‘swindled’ of their cash, and those anticipating/receiving funds can be ‘swindled’ of their assets, hard work, and ultimately their dream; even when investment funds are received.

Once you understand motives and have reasonable confidence in the integrity of the investment or investor, you have to understand how the investment is to make money. One of the core principles of understanding an investment, as outlined in the Hamilton paper, is understanding the length of time, or duration of the investment. Knowing When Angel Investing is Good for Investor and Business Alike

In this series of articles we will discuss long term vs short term strategies, and the relative safety of investments such as real estate, treasury bonds and more.

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