This morning I took a minute out from watching the market action to read a very good article by Professor Nouriel Roubini a professor at NYU’s Stern School of Business and chairman of Roubini Global Economics. In his article he explains why the doom and gloom economists continue to be so wrong when it comes to why the world’s economies have not fallen off a cliff.
His outlook is well worth a read and is one of the clearest articles I have read that describes what we have been experiencing since the credit crisis. You can read the opinion article over on Marketwatch through this link.
His outlook of a plodding, anemic growth economy that continues to simply drag itself forward, is why I believe strongly that investors need to know how to invest in any market environment, up, down or sideways. To stay profitable and continue to protect capital invested, I think it is absolutely necessary to understand the use of options with Stock Investment. It is not options that pose the risk to investing, but stocks. Stocks are the riskier asset to be holding. Options are designed to lessen the risk and work toward protecting positions from losses and the volatility of the market itself.
I think Professor Roubini’s article is an exceptional read and encourage investors to consider taking a few minutes to review it.
Disclaimer: This article is a personal commentary by the author. It is a personal opinion only. The author is not a financial planner, analyst or advisor. There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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