Tags: Investors | Financial | Defense | Football

Investors Better Start Playing Red Zone Financial Defense

Investors Better Start Playing Red Zone Financial Defense

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Monday, 12 October 2015 07:57 AM Current | Bio | Archive

Football uses a lot of colorful terms easily related to events or circumstance in everyday life.

One of those phrases which struck me as applicable to the investment game is the expression Red Zone. 

This is where the offense gets inside of the defense's 20-yard line. 

Clearly, whenever the offense gets into the Red Zone, they have a real good chance of scoring points.  Which is why the defense changes its strategy and uses special Red Zone defensive plays to forestall getting scored on.

Getting scored on is how a team loses the game.

Unlike football where either side could win or lose, in the investment game the only real players at risk are the investors. They are the only ones with money in the game.

Whether they want to realize it or not, they are always in the Red Zone. 

Some Investors have situational awareness and are making the right Red Zone investment adjustments to limit their potential loses to only a few points.  They'll be able to stay in the game.  Maybe even get a chance to score a couple of points later on.

Most investors are still playing the investment game without making an adjustment in the strategies, tactics, or the coaches they are employing. 

It's like a football team sleepwalking through a game.

It is not as if what's happening in the markets is being hidden.

The bond markets are a disaster.  When the government controls interest rates at zero, they are not saving the financial system.  They are protecting their own butts and the people who pay huge amounts of campaign contributions to keep them in their jobs.

The equity markets are equally a catastrophe.  There are no fundamentals that support the stock valuations as reflected in Dow or the S&P or any of the other indexes regularly cited approvingly by the financial pundits, analysts, talking heads, economists, or Janet Yellen.

If you haven't realized it yet, these people are lying to you.  Their livelihoods depend on it.

You are kidding yourself if you think that you can get out of the market if you see things turning out badly. 

No, you won't.

There is an old saying that if you go to a poker game and look around and can't spot the sucker, then the sucker is you.

In the investment markets, you are the sucker.

The brokerages, banks, and money managers who are the market makers for the government bonds, are also the same people rigging LIBOR, the FOREX, gold, silver, copper, oil, mergers and acquisitions — they are the inside.

Do you believe the markets are being overseen and regulated to protect the public investors?  How often do you have to lose your hard earnings in another market crash before you think differently?

Every time there is another crash, congress passes more legislation and calls for more regulation to protect the public investors. But nobody on the inside goes to jail. Or even loses any money. Quite the contrary.

The purpose of the financial legislation and regulation is to make sure the insiders are protected.  Congressional hearings and regulatory investigations are widely reported merely to appease the investing public's outrage.

But nothing changes. 

It's all just more material for another Penn and Teller show.

Investors are on the outside.  You are the sucker that brought the money to the game. 

I am not suggesting that you can change the rules of this investment game.  Not without a revolution.

What I am saying is that it is time for investors to start financially playing Red Zone defense. At least when getting scored on this time around, you may only lose a few points and not the whole game. 

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Kleinfeld
It is time for investors to start financially playing Red Zone defense. At least when getting scored on this time around, you may only lose a few points and not the whole game.
Investors, Financial, Defense, Football
614
2015-57-12
Monday, 12 October 2015 07:57 AM
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