Emma Tyler, Chapter 7, Question 3

In the seventh chapter of Naked Economics, Charles Wheelan explains the intricate workings of financial markets and their role in the daily lives of most Americans. I found that while reading this chapter and, admittedly getting rather confused a bit every few pages, I now understand the long-lasting effects of investing in a smart way early on in life. In the future, if you invest wisely, you will have great benefits monetarily speaking. If you follow Wheelan's "sniff test" steps stemming from basic economics topics- save.invest.repeat, take risk, earn reward, diversify, and invest for the long run- you will truly benefit in the future, even if it takes a while, it will pay off. The example that Wheelan continuously uses throughout the chapter, to illuminate this is the "grapefruit and ice cream diet." Wheelan explains this as a scheme that is basically disregards the laws of science and basic health guidelines which is similar to "get rich quick" scams that some investment advisers try and pull on people. It never works to the benefit of the investor to try and take shortcuts; saving early, sticking with that saving pattern, taking some smart risks, diversifying your portfolio, and always keeping the future in mind are the only sure-fire way to be successful in your investments.