Thursday, July 30, 2015

How Giants Fall

I read the news today. Everyone is concerned about the Chinese Stock Market. And they probably should be. Am I an expert on finances? No, but this is just another classic story of how giants fall. As I understand what has happened. The past few months market analysts have expressed concerns about China's stock market.

They have stated for months that the Chinese economy is not growing, but that the price of their stocks keep rising. They were overvalued. And a correction was due. So what always happens happened. The correction began. And money was lost. And not just a little money a lot of money.

So will the average person feel this shockwaves of this financial problem in China? Yes, in some way shape or form we will feel it to some extent. Many of us have money invested in 401k's that use the markets. One of the world's largest economies will loose some of its buying power. So yeah, we'll probably feel it in some way.

But what does this have to do with how giants fall? You see as has happened so many times before. Individuals have believed that things can never happen to them. And I believe there is a cautionary lesson in this for all of us. The lesson I see is this, don't ever become overconfident. Being confident is good. We all need to believe that we are capable. But if you fail to see that you can never fail you will end up in serious trouble. Like all things in life we need balance.

Another link you should read
Stand Your Ground

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