October 18, 2009
Investing for the Future
There's good advice in the newspaper this morning about separating investment proposals which are too good to be true from those that rely on the real economic value that is always the foundation of actual monetary returns.
Discounting fancy restaurants and expensive suits is an excellent idea. Although Arden Fair recently banned hoodies, it's a fact that men dressed in expensive suits are responsible for far more monetary losses than those dressed like bums.
It's only under unusual circumstances that publicly-traded investments need personal scrutiny, and I believe we are now back in circumstances where attention to general market conditions is enough for the average person to invest safely. Private investment proposals, however, always require caution. Educated and personal examination is appropriate in these situations. If you can't see the tangible thing that you are investing in, be extra careful.
At all times, an understanding of the real economy - which is the foundation of the monetary economy - is the safest approach. Economic shocks are most likely to occur when the monetary economy fails to accurately reflect the real economy.
Recently, I visited an eco-village which is still growing that seems to me like a good place to put my money. And I am sure I will find more as I continue to travel around ecotopia. Be aware, however, that this kind of investment requires even more personal participation, because communities require co-operation.