Archive for November, 2015

Investments: Where does the money go?

“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.” ~ William Feather

Recently, a religious organisation discovered their money had been invested in an oil and gas exploration company. Not wishing to support the mining of fossil fuels, they sold their shares in the company concerned. When you sell, of course, someone else is buying – so while the transaction did not necessarily harm the company directly, the organisation hopefully had the satisfaction of placing their money with ventures they felt offered a greater sense of altruism and good influence.

But more intriguing than anything they felt or did, is the fact that they knew exactly where their investment had gone. And most people, unless they’re well-versed independent investors who do their own selecting, have no idea what happens to their money once it is swallowed by a ‘fund’. This includes retirement funding, policies, money markets and all financial investing options across a wide spectrum of choices. In fact, it’s often a question they never ask. They simply expect the value of their investment to naturally, hopefully, grow.

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The Thin Edge of the Wedge: Who is the 1%?

In 2006, a film made by Jamie Johnson, heir to the Johnson & Johnson fortune, depicted Americans who controlled nearly 50% of America’s total financial wealth in 2004. The stir this created rippled across the globe until it became a wave of outrage and resentment. Eventually, for a variety of supportive reasons, banners were painted and people marched, and finally ‘Occupy Wall St’ set up vigil outside New York’s powerful financial houses.

But the 1% remained unperturbed. This is largely to do with financial acumen, personal character and practical insight. The wealth of the 1% isn’t under their mattresses – it’s tied to vast investments, ventures, projects, product development, research, science, technology, energy exploration and inventions. All of which are the very things we depend upon to prop up job opportunities, pension funds, life policies, etc, right down to competitive pricing in the supermarket. In fact, the wealth of the 1%, including their taxes, underpins just about everything on the planet.

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