Taming the Money Sharks: 8 Super-Easy Stock Investment Maxims

Chapter 6

Capitalize on Policy Directions

Are Policies Your Friends?

Regardless of how you feel about the fairness of new policies, you should capitalize on investment trends emerging from evolving policies.

A. Are Policies Fair?

Regardless of whether you feel the situations are fair or not for investment purposes, I recommend you not to fight the politicians’ policies or intentions.

We often react to new policies from politicians or regulators in terms of whether they are right or fair. However, in the investment world there should be no emotions. In fact, once you feel that you could capitalize on any special situations arising from a new policy, you may wish to immediately adjust your investment strategies or tactics, based on these new trends. Try also to assess the relative stability of the policies with respect to your portfolio objectives.

Once you have done this, if you still wish to take other non investment actions that reflect your emotions as to fair or not fair, proceed to do so by all means.

B. Policy Directions

Because investments and policies are so closely related, I would like to set forth the following reminders to be incorporated into your portfolio strategies.

1. Trade Policy

You should benefit from trade policies not just from those of your own country but of countries around the world.

For example, focusing on the Middle East, if a situation similar to the 1973 OPEC oil embargo arises, you may wish to prepare yourself as to how to adjust your strategies in ...