Article Title: Bhanu Choudhrie On Thinking Twice
Written by admin on June 24, 2019
Article Text:
Bhanu Choudhrie sees the value of hustle and staying humble while making good progress. In the investment landscape, a couple of mistakes can bring down an top investor like Bhanu Choudhrie, wealth dilution, Bhanu Choudhrie knows, can be harmful to overall well-being.
As such Bhanu Choudhrie will conduct himself with utmost humility as he seeks out more opportunities to expand value on this planet.
A few lessons are presented below in regard to investing.
After one looks at the problem, one must look at the different scenarios that would take place from making a certain decision.
In regard to recessions, one can see certain likely outcomes of that recession and how it would impact one’s portfolio. The first possibility is that a recession may not occur and the stock market may chug along as it has done for quite sometime now. The second possibility is that a recession will occur and this will have a mild impact on the portfolio.
Why? One may point to the fact that a correction occurred, as such, a deeper correction is unlikely. The third scenario is that deep recession occurs, in such a case, a deep correction would occur.
One can look toward the bond market for guidance. As of this current time, the bond market shows that the Federal Reserve will be turning interest rates down.
One can look for the near term treasury bonds and see its current rates, if the rates are less than the Federal Funds rate, it may signal that the bond market sees a correction in rates. A correction in rates would mean that the market, the Federal Reserve, and others expect a recession. At the current moment, the U.S. 2 Year Treasury is 1.88% while the Fed Funds Rate is at 2.39%.
Now, in regard to a recession, one may look at unemployment. Surprisingly, unemployment is at the lowest that it has been in a while. There are a variety of job openings across the country and there are many people who are already employed. It is healthy in terms of jobs. One can see that the unemployment rate is the lowest it has been in more than 40 years.
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