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Stock Market Update: Now Is A Buying Opportunity…

 

Last week, someone asked me, “Bo, is it the right time to invest in the stock market? I’m scared. There’s so much crisis happening in the world!”

I understand why people are scared.

First, Europe’s economy is still bad.

Second, America’s economy is still in crisis mode.

People are scared.

So, should you wait for things to settle down before you get into the Stock Market?

A Lesson Worth Billions

I have a financial mentor who’s a Billionaire.

He taught me a lesson that I’ll never forget.

My mentor said, “Bo, my wealth today was built in crisis. Not in good times. Not when everything was smooth and happy. I built my wealth when everyone was afraid.”

He told me his war stories. (I love his war stories!)

When Ninoy Aquino was shot in 1983 in the tarmac, chaos ruled the day. Demonstrations burst into the streets. The country was going to the dogs. Wealthy Filipinos fled to other countries. Our stock market crashed. But what was my mentor doing? As everyone was selling, he was buying shares in the Stock Market.

Every month, things got worse, and the stock market dove even lower, and everyone was ten times scared. But my mentor was still buying!

But in 1986, when Cory Aquino was proclaimed President in 1986, lovely hope returned to the Philippines. And the stock market rose like a rocket to the sky. Everyone started buying.

What was my mentor doing? He was doing the exact opposite: Selling and making a huge profit.

In Cory’s Presidency, there were six coup d’etat. Six rebellions! And everytime there was a rebellion, people sold their stocks. In every dip, my mentor dove in and bought shares.

The worst coup d’etat was in 1989 led by RAM’s Gringo Honasan. The Stock Marketcollapsed again as foreigners and locals sold like crazy. And my mentor was so happy. So many cheap companies to buy! And that’s what he did.

That rebellion was squashed, and people went back to the stock market. As it went up, my mentor was selling again.

My mentor said, “You can be sure that whenever there was a crisis, I was there buying. I bought only giant companies that were earning a lot of money. Nothing was wrong with them. The only reason why their prices were going down is because everyone was scared.”

 

Read more…
http://www.investorluranski.com/2011/09/stock-market-update-now-is-buying.html