As 2009 draws to an end, will we learn not to be taken in by statistics that show inflation at historic lows when we are paying princely and ever-increasing sums for basic commodities? Will we also finally learn that selling in panic just because the stock market has tanked is a bad idea? We should know by now that investing in property for the short term is not a profitable exercise, but the minute the real estate market shows signs of moving south, we start looking for buyers. Theoretically, we know that too much debt is a bad idea. Practically, how many of us take loans or credit because they promise low interest rates?
Over the next several pages, we take a look at what we ought to have learnt from the events of 2009. We consider events in the stock market, mutual funds, insurance, banking, real estate and careers, and try to understand where we went wrong as investors. Pulitzer Prize winner Robert Penn Warren once said that the past is always a rebuke to the present. Of what use is a rebuke if we learn nothing from it?
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