Cognitive psychologists have long known that we are very poor judges
of what makes us happy: the pleasure from money, fame, possessions,
and power turns out to be quite transient (and so is the pain from
things which we think would permanently sadden us: the depression
caused by sudden, permanent blindness or paraplegia, for example, is
surprisingly short-lived).
Three things provide long-lasting satisfaction, as quantitatively
measured by academic psychologists: autonomy, meaningful contact with
others, and the development and exercise of competence. The message
for small investors is clear. Begin with the assumption that you value
your independence, family, friends, and intellectual and physical
development.
As a Co-Op, I feel that I am a small investor in a big game. General
Electric provides us with ample opportunities in a realm that exudes
independence. First thing here, we are just a bunch of kids that show
up to the same place with a common goal. We are sorted into Technology
and Supply-Chain, and we develop friends. After a while, it seems that
our friends are are family away from home. On the job, we are
consistantly intellectually stimulated and we begin to develop skills
and attributes that will help us through life. Investing in ourselves
is why we are here. We are working for a great company, and they
provide us this opportunity.
I am an Industrial Engineer from Purdue. While that might mean
something to some of you, it probably won’t mean much to the rest of
you. I also read economic news and financial news regularly. For those
of you that don’t, I figured I’d compile and list 3 concepts that
currently interest me.
1. Global Water
What is the cheapest limited resource that is running out the fastest?
Water. In China, there are billions of people whose daily challenge is
to find drinkable water. It is expected that their main river will not
support life by the end of the year. Factor in global warming and all
the other parts of the world that are short on water, and you clearly
see the need for salt-water refinement.
2. Global Economy
What is every financial webpage focused on? Terms like BRIC, come to
mind (Brazil, Russia, India, China), the countries with the most
explosive growth in GDP over the last decade. GDP is said to be the
best gauge to determine the strength of the economy. Asian Economies
historically have had high savings rates, and I only expect to see the
market continue to grow because there is a limited amount of stock,
and a huge supply of money. Especially when you factor in the company
initiatives for stock buybacks in the last year.
3. Dynamic Market Indicies
This is more of an awareness note, because I figure most of you don’t
know. There are such investments, like the Dow Jones Industrial
Average and the S&P 500, that do exactly 200% of those indicies. There
are also investments that re-allocate your portfolio based on
“alpha-seeking”, “intelliindexing”, or “zacks rank”. Althougth these
ideas are relatively new, they are taking off with a bang. I’ve even
seen a fund that allocates it’s money equally among top nations that
it ranks through a proven system that identifies countries with the
most likelyhood to grow.