Online forex currency trading – If a person has $10,000 he should not put it all into second mortgages.


A business recession and slump in real estate values might cause him to lose a material part of his second mortgage investment. If a portion of his funds is in building and loan associations, in all probability he would not lose a penny of his investment. Because of the decline in price level in recessions he would be better off in purchasing power with his funds in the building and loan association. In the recovery phase of the business cycle, even high yield investments might not be good as compared with a rising stock market. The investor should diversify at all times as to types of investment, neither keeping everything in the savings bank nor in the stock market. In addition to diversifying as to type of investment the investor should diversify as to amounts.

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