Investing for the Future and Avoiding Crises

zachranne koleso

Filip Orth
Student at Santa Clara University, Freelancer
Bratislava, Slovakia

Everyone is familiar with crisis. A crisis is a negative event which is essentially just the aftermath of an earlier problem; crisis is the peak of a negative cycle, so to speak. Some crises can be predicted, but there are many others that we are not able to foresee or that are at least hard to predict, like the environmental ones.

 

We can find different types of crises in the history of mankind – political, societal, however, financial and environmental crises are the most influential or catastrophic. If we just look back at financial crises, we can see in unbelievable detail the influence these crises had on our world. All of us definitely remember the year 2008, when financial markets collapsed and we all became victims of the financial crisis that has not been completely “repaired” till today. Looking at the indicators pointing at an emerging crisis, it seems that people are once again taking all the steps that boost the process.

 

Common crisis indicators are:

 

The problem lies not only in greed that will always exist and which can probably be blamed now again for the fact that people do not seem to care about precautions taken after the financial crisis anymore. There are more detailed issues, for example, the total wealth in the world is not being invested enough. There is still a huge amount of money being saved for no apparent reason, just like putting money under a mattress. This is not only about saving and having the ability to be thrifty in a good way. Money was made, at least to some extent, to be circulating in a system, just like blood in our bodies. It is beneficial to save money, however, some amount should be reinvested and used for keeping the system “healthy”. This should be taken as partial obligation, not only by individuals, but in general, by organizations, businesses, even countries. Of course, the system has to be “healthy” in itself first, in order to be maintained properly and money could circulate. This means good legislation and no bureaucracy standing in the way, as well as no corruption, scams or other economic enemies.

 

There are two sides to financial markets: the financial sector taking care of finances and, of course, the customers that usually need to have some advisory service to know how to navigate these ‘wild waters’ with their money. Therefore, these obligations should not be hanging only on the customer´s shoulders, but also on a financial market representative. A balance should exist in helping the other side to invest the right amount of money into the right sector, where the customer feels comfortable, which fits like a tailored suit. At the end of the day, the customer invests into everything, not only their own rich future, but the whole world; just like even a little amount of blood is essential for the body to function properly and stay healthy, the same applies to the economy to work properly and evade a possible financial crisis. It may sound too optimistic, but certain measures can be taken to make it easier for everyone if something similar happens the future.

 

 



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