It is an unfortunate tendency that, during times of normal and superior economic conditions, too many people becoming entranced with the get-rich-quick type schemes and not enough interest is paid to making conservative investment decisions that will truly reveal their usefulness during the next downturn in the economy.
There are two things that are more important to investing than anything else: liquidity, and the ownership of some assets somewhere that will generate income somewhere in the most adverse of conditions.
Imagine, for a moment, that you were a farmer in the 1920s. By 1925, crop prices had risen so much that people were talking about quitting school to farm because 300-500 acres of farmland were generating profits of $20,000. For comparison, the average schoolteacher earned $3,328 per year in 1925. If the Book of Ecclesiastes is right that there is a season for everything, then this was the season for … Read the rest of this article!