Every day it seems like the world is more interconnected. If you watch any financial television channel or read the news online, you are most likely aware of how events in one country seem to have an <a href="https://www.investopedia.com/articles/economics/10/globalization-developed-countries.asp">ever-increasing effect on other countries around the world </a>. Certain aspects of <a href="https://www.investopedia.com/terms/g/globalization.asp">globalization </a> can have positive benefits, but when threats of a financial crisis, war, global recession, trade imbalances, etc. do occur, it often leads to the talk of moving money to safer investments and increasing government deficits. This rising uncertainty can confuse even the well-informed investor.

Uncertainity in current times

<ul><li>The move of investor capital from equities to safer assets causes the stock market to depreciate.</li><li>Uncertainty impacts the economy on both the micro and macro level: On the micro level it focuses on companies and individuals, while on the macro level it focuses on the overall economy, like global oil prices and the flight of capital.</li><li>Being well informed and adjusting your investment strategy as events change over time will allow you to invest wisely.</li><li>Diversification is a key investment strategy that prevents significant losses if one area of your portfolio takes a serious hit.</li></ul>

Key Takeaways

Any time you put money at risk in an attempt to profit, there is an inherent level of uncertainty. When new threats such as war or recession arise, the level of uncertainty increases significantly as companies can no longer accurately predict their future earnings.As a result, institutional investors will reduce their holdings in stocks considered unsafe and move the funds to other asset classes like <a href="https://www.investopedia.com/terms/p/preciousmetal.asp">precious metals </a>, government bonds, and <a href="https://www.investopedia.com/terms/m/moneymarket.asp">money-market </a>instruments. This sell-off, which occurs as large portfolios reposition themselves, can cause the stock market to depreciate.

The Impact of Uncertainty on Investing

Regardless of which strategy you decide to take (if any), you can't go wrong over the long term by keeping yourself well-informed and getting into a position to take advantage of prices when things reverse. Being able to keep on top of news and adjust your portfolio accordingly will help you to invest wisely during uncertain times.

The Bottom Line

Learn about the challenges of investing in uncertain times. Find out how to protect your money with future events being difficult for investors to predict.

moneyandinvestments

Money & Investments

How to Invest in Uncertain Times 

Author explains that everything is random

Fooled By randomness

Wind extinguishes a candle but energizes the fire.

Autor Nassim Nicolas Taleb describes how life is more random than we assume. 

Fooled by Randomness is a standalone book in Nassim Nicholas Taleb’s landmark Incerto series, an investigation of opacity, luck, uncertainty, probability, human error, risk, and decision-making in a world we don’t understand. The other books in the series are The Black Swan, Antifragile, Skin in the Game, and The Bed of Procrustes. Fooled by Randomness is the word-of-mouth sensation that will change the way you think about business and the world. Nassim Nicholas Taleb–veteran trader, renowned risk expert, polymathic scholar, erudite raconteur, and New York Times bestselling author of The Black Swan–has written a modern classic that turns on its head what we believe about luck and skill. This book is about luck–or more precisely, about how we perceive and deal with luck in life and business. Set against the backdrop of the most conspicuous forum in which luck is mistaken for skill–the world of trading–Fooled by Randomness provides captivating insight into one of the least understood factors in all our lives. Writing in an entertaining narrative style, the author tackles major intellectual issues related to the underestimation of the influence of happenstance on our lives. The book is populated with an array of characters, some of whom have grasped, in their own way, the significance of chance: the baseball legend Yogi Berra; the philosopher of knowledge Karl Popper; the ancient world’s wisest man, Solon; the modern financier George Soros; and the Greek voyager Odysseus. We also meet the fictional Nero, who seems to understand the role of randomness in his professional life but falls victim to his own superstitious foolishness. However, the most recognizable character of all remains unnamed–the lucky fool who happens to be in the right place at the right time–he embodies the “survival of the least fit.” Such individuals attract devoted followers who believe in their guru’s insights and methods. But no one can replicate what is obtained by chance. Are we capable of distinguishing the fortunate charlatan from the genuine visionary? Must we always try to uncover nonexistent messages in random events? It may be impossible to guard ourselves against the vagaries of the goddess Fortuna, but after reading Fooled by Randomness we can be a little better prepared. Named by Fortune One of the Smartest Books of All Time A Financial Times Best Business Book of the Year

books

Books

Fooled by Randomness is a standalone book in Nassim Nicholas Taleb’s landmark Incerto series, an investigation of opacity, luck, uncertainty, probability, human error, risk, and decision-making in a world we don’t understand. The other books in the series are The Black Swan, Antifragile, Skin in the Game, and The Bed of Procrustes. Fooled by Randomness is the word-of-mouth sensation that will change the way you think about business and the world. Nassim Nicholas Taleb–veteran trader, renowned risk expert, polymathic scholar, erudite raconteur, and New York Times bestselling author of The Black Swan–has written a modern classic that turns on its head what we believe about luck and skill. This book is about luck–or more precisely, about how we perceive and deal with luck in life and business. Set against the backdrop of the most conspicuous forum in which luck is mistaken for skill–the world of trading–Fooled by Randomness provides captivating insight into one of the least understood factors in all our lives. Writing in an entertaining narrative style, the author tackles major intellectual issues related to the underestimation of the influence of happenstance on our lives. The book is populated with an array of characters, some of whom have grasped, in their own way, the significance of chance: the baseball legend Yogi Berra; the philosopher of knowledge Karl Popper; the ancient world’s wisest man, Solon; the modern financier George Soros; and the Greek voyager Odysseus. We also meet the fictional Nero, who seems to understand the role of randomness in his professional life but falls victim to his own superstitious foolishness. However, the most recognizable character of all remains unnamed–the lucky fool who happens to be in the right place at the right time–he embodies the “survival of the least fit.” Such individuals attract devoted followers who believe in their guru’s insights and methods. But no one can replicate what is obtained by chance. Are we capable of distinguishing the fortunate charlatan from the genuine visionary? Must we always try to uncover nonexistent messages in random events? It may be impossible to guard ourselves against the vagaries of the goddess Fortuna, but after reading Fooled by Randomness we can be a little better prepared. Named by Fortune One of the Smartest Books of All Time A Financial Times Best Business Book of the Year

Nassim Nicholas Taleb is an accomplished writer whose work has resonated with readers around the world. Nassim Nicholas Taleb has published several books that explore a range of topics, from fiction to nonfiction, and has received critical acclaim for the ability to weave compelling narratives. Nassim Nicholas Taleb's writing style is known for its depth and authenticity, and has earned quite a loyal following of readers.

Nassim Nicholas Taleb

Fooled by Randomness

All time high Nov-2021: $67,549.14Value in mid Jan-2022 : $35,613.40Difference: $31935.74

Bitcoin is half if values 

Well it depends if you are investor or speculator.An investor plans and educates himself in a desciplined manner.A specualtor is in the game only for making money.

Are Cyptos good or bad?

"The market is like a large movie theater with a small door."

As its goes with any financial asset - Stick to the basics.

So what now?

crypto

Cryptocurrency

Current bition meltdown.

Retirement planning is a <a href="https://www.investopedia.com/retirement/retirement-planning-doesnt-stop-when-you-retire/">multistep process that evolves over time </a>. To have a comfortable, secure—and fun—retirement, you need to build the financial cushion that will fund it all. The fun part is why it makes sense to pay attention to the serious—and perhaps boring—part: planning how you’ll get there.

What Is retirement planning

<ul><li>Retirement planning should include determining time horizons, estimating expenses, calculating required after-tax returns, assessing <a href="https://www.investopedia.com/terms/r/risktolerance.asp">risk tolerance </a>, and doing estate planning. </li><li>Start planning for retirement as soon as you can to take advantage of the power of compounding. </li><li>Younger investors can take more risk with their investments, while investors closer to retirement should be more conservative.  </li><li>Retirement plans evolve through the years, which means portfolios should be rebalanced and estate plans updated as needed. </li> </ul>

Key Points

Knowledge on Retirement planning is essential as it needs to be planned right from the beginning of career.

Regardless of your age, taking these five steps will help you build a solid retirement plan.

career

Career

5 Key Retirement Planning Steps That Everyone Should Take

“Compound interest is the 8th wonder of the world”.

finance : to pay interest on both an amount of money and the interest it has already earned.

What Is Compounding?

Compound interest = total amount of principal and interest in future (or future value) less principal amount at present (or present value)= P [(1 + i)n – 1]Where:P = principali = nominal annual interest rate in percentage termsn = number of compounding periods

Formula For Compound interest 

<ul><li>Compound interest can significantly boost investment returns over the long term. </li><li>While a $100,000 deposit that receives 5% simple annual interest would earn $50,000 in total interest over 10 years, the annual compound interest of 5% on $10,000 would amount to $62,889.46 over the same period. </li><li>If the compounding period were instead paid monthly over the same 10-year period at 5% compound interest, the total interest would instead grow to $64,700.95.</li></ul>

How to Invest in Uncertain Times

Fooled by Randomness

Current bition meltdown.

5 Key Retirement Planning Steps That Everyone Should Take

Power of Compounding

Ajay Sharma