Break Free From the Interest Rate Cut Addiction

Submitted by
on March 12, 2008

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There is more to stock market life. Interest rate reductions have no monopoly on financial planning. The entire housing story also has limits. Banking blunders cannot besmirch the entire economy. It is time to look at stock and the market as well, with a fresh perspective. We recommend the work of Management Guru and author Peter Senge.

The stock market is part of the overall economic environment. All players should see themselves as parts of the problems that affect their investments. Haranguing the Fed for unlimited interest rate reductions will not help. What good is cheap credit without feasible projects? Why cannot demand and margins grow on other types of feeds?

The Fifth Discipline was first published nearly two decades ago. The world may have changed beyond recognition since then, but the concepts of Dr. Senge remain relevant in the midst of the current stock market crisis. Look at your portfolio through the concepts of a learning stock investor. You will find plenty that you can do without counting on the Fed.

Recession is a macro phenomenon. You can use it as a challenge to deliver enhanced values to your customers. It may also be opportune to move horizontally or vertically to greener pastures. The Fifth Discipline is just as useful to shuffle stocks. Here is a link to another page on this web site, which you might like to use in order to find strong demand areas: High Tech Sector

Peter Senge is evangelical, in his famous book, about finding ways to deal with monsters such as inflation. One of our sister web sites has a piece based on principles of the Fifth Discipline. Here is a link: Management accounting for China business Supremecy

You could be a salaried executive or a small business owner. Perhaps you are in to stock investing exclusively. You can use the Fifth Discipline to jump on to the learning bandwagon. It is a great way to bond with colleagues and associates as well. Join our forum and post to know more.

 

 

 


 


 

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