Some of us have the luxury of having secure pensions and have acquired property and assets to carry us into the years where an ambulance could be a mode of transportation for us. I know many people who are in good financial shape, while the income statistics in most countries suggest the majority are not. Even having any money or resources to invest is a luxury.
Many lawyers either resent or embrace having the term “ambulance chaser” being attached to their profession. In loose terms, ambulance chasing is a metaphor for taking advantage of some form of mishap or unfortunate event.
Examples of Ambulance Chasing
- Selling services to people going through a setback such as a divorce, medical emergency, or natural disaster.
- Buying property and goods at discount rates following an economic meltdown or natural disaster. The sub-prime mortgage meltdown in the US created many investment opportunities.
- Selling Volkswagen stocks short when their emissions fudge was announced and buying at the bottom. Stocks lost about a third of their value in a few days. Savvy investors bought enough shares at the bottom to cover the short plus more shares on the reasonable expectation that the company would survive and eventually recover much of the share loss. Investors made a lot of money going down and also going up.
- Selling off British Pounds and assets in anticipation of a dip related to the Brexit poll, then buying at the bottom in the expectation that sky would not actually fall and the British economy would eventually stabilize after adjusting to a new relationship with the European Union.
Avoid Getting Run Over by the Ambulance
While I did not get run over chasing the ambulance that was the Brexit aftermath, I did get my foot run over. I agreed with most analysts that the British Pound would plunge severely. I bought pounds as they went down. However, I did not monitor and wait to see where the bottom was and bought higher than I needed to. I am sure the UK will stabilize and the pound will eventually rebound. It will simply take longer to realize any gains.
While Britain will survive Brexit, not all things recover. Here are some examples of getting run over by the ambulance:
- Buying property in a town that never recovers from and economic downturn or other disaster. They are called Ghost Towns.
- Buying stock in a company headed for oblivion.
Those events are very rare, but do happen. In investing terms, a stop loss sale will minimize the losses.
A More Positive Spin
While opportunistic, the world needs people and organizations to jump in when things are down. Otherwise things would just continue to decline to become worthless.
The world and British economy will recover quickly because investors saw a bargain and provided support in the form of their investment money.
Small towns avoid becoming a ghost town after a crushing blow because people to see potential and bargain and buy up properties, renovate, and look for ways to provide economic recovery for the community. The investors can both see opportunity and also help rebuild in a more altruistic sense.
We believe it is possible to invest with heart and good intentions.
It is also possible to use the returns from good investments to help make the world a better place, whether that is by helping people, helping animals, helping the environment, or building better communities.
What would you do to make the world a better place if you could earn more money?
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