While many well-meaning "experts" tell you to "ignore the news" and suggest that you "choose not to participate in the economic downturn," sophisticated investors recognize that it's simply foolish to pretend all is well, and ignore the economic fundamentals.
I'm not arguing the concept of remaining optimistic and positive-minded - in fact, I believe your mindset is the single most important indicator of whether you'll be successful in business and investing in the long run. However, sticking your head in the sand and ignoring what's really going on is a recipe for disaster.
What separates great investors from everyone else is that they know how to understand and interpret financial and economic information, and turn it into opportunity and profit.
We're in the midst of the greatest transfer of wealth in the history of our world. Money isn't destroyed during these times - it simply moves around, and goes to those who understand how to create value and capitalize on the uncertainty.
Here's the good news: It's during turbulent economic times when you have the greatest opportunity to generate significant wealth and freedom.
But there's also some bad news: It's during turbulent economic times when you have the greatest chance of being wiped out.
The obvious question should be:
How do you make sure to turn economic turbulence into opportunity, instead of risk?
The simple answer is financial literacy. It's the difference between riding the wave of change, or being swept away by it. Unfortunately, most people get their news from the headlines they see in the newspaper or the evening news. They take advice from the people closest to them - friends and family members who usually have no experience or expertise providing economic or investment advice.
Chances are if you're anxious or fearful right now, it's because you're lacking the confidence that a strong financial and economic understanding gives you. When you change your view of what's going on based on a single conversation with someone or an article you read in the paper, it's likely that you're reacting emotionally to what's happening instead of responding strategically.
That's going to change right now, because this article is the first in a series that's intended to educate, empower and inspire you to become the master of your financial future.To get the rest of Habstritt's expert analysis, pick up a copy of our November issue, on newsstands until Nov. 7.
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