Since it is the anniversary of the Lehman collapse, I thought it would be wise to come up with a list of Bad Investment Advice. Here they are:
- Signing up for something you do not understand.
- Agreeing to any investment with an unlimited downside risk.
- Thinking of short term gains.
- Accepting something that is too good to be true
- Taking volatility knowing that peace of mind is important to you.
- Not recognising that there is always a change in business cycles. Upturns are followed by downturns. Any good economic conditions longer than 7 years then you have to be cautious.
- Taking big bets or borrow to invest.
- Borrowing in a currency that has risen in value or borrow to invest in an asset with a different currency of return.
These are some of the things to keep in mind so that you do not listen to Bad Investment Advice.