Six things not to ‘financially’ do in 2012
“Oh no, not one more.” I can see you say. There is a lot of reading material out there, telling you what happened in 2011 and what you should do in 2012. Just as much as it is important to do the right things, it is critical to avoid the wrong ones. So here, let’s see what are those things you should not do, stay away from or avoid in 2012?
Remember the silver rush?
Remember the silver rush earlier this year? There was widespread euphoria that silver was the next gold, it has much more industrial use than gold and a thousand reports on how silver was still undervalued and why you should put your money in there. Silver prices touched Rs.70000 a kilo in April and then what happened? Humpty dumpty had a great fall and hasn’t yet gotten up. In 2012, remember that precious metals and commodities are better bought for consumption, on a need to own basis. Don’t run after the latest fad, more importantly not with all your money.
Timing the market?
The equity markets in the last 5 years have come a full cycle. Starting earlier than 2006 to end 2007 it was the great bull run. 2008 saw it all crumble and marked the beginning of the still underway recession. 2009 and 2010 were years of hope when markets recovered smartly and forced people to believe that the worst was behind them. Like Warren Buffet once said, “there is never one cockroach in the kitchen” one by
