Thursday, June 19, 2008

What goes up must come down…
econ Lesson one
Newton’s near miss. What works in physics really doesn’t apply in reality. If I were to drop a ten pound brick on the top of my foot no one would notice accept me. If that were a ten pound bag of gold it would hurt just the same except the jingle jangle of the coins would draw a lot of attention.

So the bag drops due to Mr. Newton’s gravity. It hits my foot and it hurts. What’s in the bag really matters for it’s our lesson for the day. If it were gold coins they could pay for the medical bills in having my broken foot X-rayed and placed in a cast. Or, the coins could pay the deductible on my health insurance or it’s premium.

However, if I took the gold and invested it in the gold options market, I could create my own “Hedge ‘ against personal injury playing for a projected up swing.

So you can either look up having a positive attitude and step in a man hole, or look down where you are walking and knock yourself silly on a low hanging branch. It’s the long and the short of it or so says this new book on investing.

It’s a matter of free choice and how wide the manhole is . Ain’t life grand?

1 Comments:

At 9:26 AM, Anonymous Anonymous said...

How about free advice? One was "try snow skiing up hill instead of down" The other was that I should have listened to mother and finished Med. school.

 

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