How not to feel bad when the price of goods and services increases?
People always feel bad when the prices of goods and services like gas, electricity, telephone and water bills, beer increases. And most often than not, they turn their anger to the companies that provide such services who, they alleged, are talking too much profit at the expense of the people’s money.
On the other hand, most of the workers and employees of a certain company feel bad because of their measly salary. They believe the “greedy” owners of the company, where they are working, are taking too much profit while leaving the workers and employees with a very small amount of income.
Then, if you are one of them and do believe to such cases, why don’t you try to be a part-owner of the company where you are working-with or of a company where you buy your electricity, water, cell phone load, education, beer, and gasoline. You can do it easily by investing in the stock market and buy the shares of the company that you hated most because you believe that they are charging you too much. This is called hedging; it will put you in a win-win scenario. For example, invest your money on Chevron stocks. If you are indeed right that Chevron is talking too much profit by increasing the price of gasoline, you are a winner because you gain from your investment. On the other hand, if you are wrong such that Chevron is not actually earning from the current price of gasoline, you are a winner because you buy your gasoline at a fair price; however, you don’t earn much from your investment.
Try this strategy. It will make you feel good.
Filed in: Money and Investing, Stocks and Stock Market
Local date: March, 2010