{"id":22831,"date":"2008-05-28T09:59:00","date_gmt":"2008-05-28T09:59:00","guid":{"rendered":"https:\/\/clusterfamilyoffice.com\/blog\/?p=506"},"modified":"2008-05-28T09:59:00","modified_gmt":"2008-05-28T09:59:00","slug":"the-show-must-go-on-2-el-absentismo-financiero-nos-condena-a-la-mediocridad","status":"publish","type":"post","link":"https:\/\/clusterfamilyoffice.com\/en\/the-show-must-go-on-2-el-absentismo-financiero-nos-condena-a-la-mediocridad\/","title":{"rendered":"\u00abThe Show must go on (2)\u00bb. Financial Absenteeism condemns us to mediocrity."},"content":{"rendered":"
These are difficult times for investors. And this is a warning sign of the social impoverishment that lies ahead (we warned you already a year ago<\/a>). When investing becomes particularly difficult and financial instruments are unusually volatile, the market price of the property prices in free fall<\/a> Due to a massive increase in supply, and at a time when traditional economic cycles are being distorted to the point of disappearing, there are clear signs that we are on the brink of an economic crisis that will have a devastating impact on businesses and their jobs.<\/div>\n
\"\"<\/a>Although it is clear that this crisis has been affecting investors for months, its impact on ordinary people in the developed world has not yet been fully felt; nevertheless, it is already knocking on the doors of millions of people. Unfortunately, in the developing and underdeveloped world pouring down on the flooded area<\/span>, because the need for alternative biofuels is causing a famine that should concern us infinitely more than UBS\u2019s accounting problems, to give a stupid and shameful example.<\/p>\n

\"\"<\/a>Just like the pessimism about the property market<\/a> It hinders the healthy growth of our wealth; the nomadic practice of parking money in bank deposits, scraping together tenths of a percentage point above the Euribor \u2013 here today, there tomorrow \u2013 does nothing to promote the sound, planned growth of our cash. However, compared to strategies that focus solely on rising share prices and the short term \u2013 which have made thousands upon thousands of investors rich in recent years \u2013 those entrenched in savings accounts will form the elite of those who knew how to exit the market in time and will be envied for weathering the winter without losses until the stock market spring returns (although the Japanese have been waiting for it for 18 years). But there is an opportunity cost, and in times of crisis it tends to be high.<\/span><\/p>\n

In short, both the <\/span>Pessimism in the property market<\/a> such as the <\/span>Financial Absenteeism<\/span> represent a dangerous shift in the healthy growth of our wealth, which we must safeguard throughout our lives and in any economic climate.<\/span> Some of you might say that avoiding losses that would severely erode our wealth is an achievement in these times. Of course, it is a lesser evil and, for many, a pipe dream, but we should only be content with avoiding a decline in our wealth if we are unable to maintain steady progress with reasonable guarantees of success, whether on our own or with help. Furthermore, success in achieving such steady progress will depend entirely on the PGR<\/a> designed and based on the unique characteristics of the individual or family.<\/p>\n

Here we must make it clear that financial success should not be defined solely in terms of maximising financial returns. Wealth and happiness are concepts that we must address together, as the former often poses a serious threat to the latter, as we can see from the following chart:<\/p>\n

\"\"<\/a><\/p>\n

\u00abA concert is not merely a performance of an album, but a theatrical event\u00bb<\/p>\n

Freddie Mercury<\/span><\/p><\/blockquote>\n

Similarly, we can say that managing our wealth is not merely a matter of applying economic principles to our investments, but rather the perfect harmony between Happiness and Wealth<\/span> throughout our lives and those of our descendants.<\/p><\/blockquote>\n