Caroline Pellegrin Chapter Seven, Question Seven

I have to say, this chapter was probably the most informative and useful section we have read thus far. Investment, the stock market, bonds, Wall Street, risk and speculation are all topics that are frequently discussed in newspaper articles, radio reports, conversations between individuals, movies and magazines- yet I never really fully grasped what they were actually referring to. For instance, I knew that Wall Street was the head of the stock market, but I wasn't exactly sure of what it means to invest in the stock market, or the risks that come with doing so. Overall, I learned that, as growing economically conscious individual, I need to invest broadly, take well calculated risks, prioritize saving and remain patient. First, in order to have capital that I can allow others to "rent," I must first have enough capital saved. The sooner I begin saving, the greater personal capital I will have access to. Investments that have high expected return rates are risky, not necessarily a blessing sent from the heavens. Investments should be made broadly, not concentrated to one company or type of investment. Lastly, there will be times with greater prosperity than others in the investment market, but if an investor remains patient and doesn't act drastically these tides should eventually even out. Surely, I don't feel ready to make any substantial economic decisions after reading this chapter (besides saving more often), but I do feel a bit more enlightened on the subject of investment.