During a time when we are still plagued by unemployment and an under-performing housing market, is it practical to believe in a world of financial abundance? I sure hope so, as the positive mindset is a key factor for achieving significant wealth.
Don’t lose hope
This could be difficult, but do not allow a fear-mongering media to determine your economic outlook. A thousand planes will land safely, but only the one that doesn’t will make the news.
News programmes are in the business of sensationalism because that’s what sells. But just because a topic is garnering mass media attention doesn’t make the viewpoints shared correct, even if there are economic pundits doing the speaking. Consider how late the media was to catch on to the fact that we were in recession.
In fact, brilliant and controversial economist Art Laffer was emphatic that we were not in a recession and later apologised for getting such a significant call wrong. By the time we officially declared that the economy was in a recession, we had been in it for well over a year.
We would be better off to instead focus on what we want our contribution to this world to be. We are the biggest keys to our financial futures. Even during the current economic climate, the opportunities are immense. The pertinent question is “Will we seize them?”
Are you ready for a wealth transfer
READ ALSO: Nigeria’s giant strides towards attaining three million barrel per day production
With mortgage rates at historic lows, housing prices depressed, and anaemic housing sales, there are some opportunities in real estate that haven’t been seen in decades.
Remember, it was Buffet who said, to “be greedy when others are fearful and fearful when others are greedy.”
John Paulson realised this and used intellectual capital to orchestrate one of the greatest financial plays ever recorded in a single year according to Alpha magazine. Paulson got wind of the coming storm of mortgage defaults in 2005. He taught himself the complex world of mortgage-backed securities. It became clear to him that the real estate growth was unsustainable. To capitalised, Paulson created packages of distressed and overpriced assets.
These were then sold through Goldman Sachs to sophisticated investors who failed to thoroughly appreciate the risks associated with the deals. Indeed, the buyers were all too happy to take Paulson’s money. His financial interests ran contrary to the investments in these deals. Consequently, when the real estate bubble burst, Paulson profited to the tune of billions personally and tens of billions for his hedge fund.
David Tepper is another who made a brilliant play that resulted in a colossal payday. Tepper chose to buy troubled assets backed by commercial real estate while other investors were divesting in droves. With a personal gain of $2.5bn and a total fund gain of $7bn during the recession, David Tepper’s bet certainly paid off… in dividends.
Of course there are several other examples, but the point is there are some outstanding opportunities in a bad economy just as there are opportunities during a good one. Opportunities are everywhere.
Indeed, Market Watch recently profiled nine companies that grew during the recession. While I am certainly not endorsing putting on rose-coloured glasses, I am suggesting that you invest some time in determining how you can best capitalised on the present market with your gifts, knowledge, abilities, and experience.
They are both right
The power of belief in oneself cannot be overstated. In The Millionaire Mind, Dr. Thomas J Stanley concluded that almost all millionaires attributed their success to believing in themselves. You have to believe in yourself to start a business or invest on your own. It’s certainly not for the faint at heart. I will never forget hearing the story of an ex-felon with a 3rd grade education. He was both illiterate and inarticulate.
However, he never let his circumstances stop his belief in himself. He knew he was going to be someone. He applied himself, seized several business opportunities, and the rest is history. He receives in excess of $30,000 per month from his businesses while most Ph.Ds and other professionals never come close to that type of earnings power.
I also had the privilege of hearing a talk from an outstanding achiever. He started his own law firm right out of law school. His first month’s income was $30. However, that did not dissuade him.
He persisted because he “just knew” he would make it. His business presently generates in excess of $30 million per month, and his personal net worth over a hundred million.
While I certainly cannot wholly attribute his success to his unrelenting belief in himself, I will say that it is very unlikely he would have found success if he gave up prematurely. His favourite quote is: “whether you think you can or think you can’t, you are right in either case.”
Don’t allow this season to past without you taking inventory on what you have available to exploit the present opportunities. At a time when business can proceed at the speed of thought, all it takes is the implementation of the right ideas to bring one from obscurity into tremendous success.
