Why Do You Want To Trade For A Living Final

theFreedomTrader®

SUMMARY: -------------------- Freedom of travel brings about perspective and allows you to emotionally cope with trading volatility better, without getting caught up in the panic and allowing your emotions to go up and down based on your account balance. It also reminds you to always put things in perspective no matter how trying the current circumstances maybe, which I know a lot of people feel a sense of loss at the moment, me included, in regards to the sudden decline in your trading accounts. In regards to whether there is a coming financial crisis upon us, in my opinion the answer is no, and here are 6 reasons why; 1.Gold continues to retreat and in times of crisis, precious metals like Gold is normally sought after pushing up prices quickly. 2.High yield credit spreads, excluding energy related debt (which only represent a small portion of overall debt issues anyway), are still within normal range and haven’t spiked, which normally occurs during the onset of recessions. 3.The 2 year Interest Rate swap spreads still remain low which tell us that financial markets are highly liquid and there is no risk of systemic risk. 4.The VIX volatility ratio although elevated recently, is still hovering at relatively low levels. 5. The S&P 500 Price to Earnings Ratio is close to its long term average of 16.5, so the market valuation overall isn’t stretched. And finally China, although the second largest economy in the world, imports a very small percentage of Unites State’s exports and therefore slowing Chinese growth is unlikely to derail the ongoing recovery of the US economy. It is these facts which not only help me sleep better at night knowing my long term portfolio of great global businesses like Apple, Bank of America, Johnson and Johnson, IBM, Oracle and Walmart will continue generating increasing profits, it also provides the opportunity to invest even further at lower prices and with a higher margin of safety.