Fish in trouble water from a business perspectives

Being a man of the wild, the fisherman knows that it is best to fish in troubled water.

In a troubled time, the water current is strong. So, fish which have gills which is sensitive to the water current will move to a place with lower pressure, to stabilize the pressure around his gills.

Therefore, you can fish for a nice beautiful catch during a heavy storm. Ask a fisherman and you know that, if they get a trolley of "Pomfret", even if it is, once a year, they would be heavily rewarded.

However there is a catch "during storms, they will get a good catch, but they can lose their life, in the process." and the acronym "high risk, high gain" stay put.

Back to business, during bad times, it is the right time to expand, as the saying goes "fish in troubled water."

Let us be more technical, market move in cycles, due to expansionary and contraction phases, due to the actions of bankers.

Bankers are our intermediaries between the consumer and the producer market. No business or commerce per se can exist without the bankers. The bankers will let go of their fishing rail and reduce interest rates during good times and rail in their catch during bad times by increasing interest rates.

There is an acronym in wall street "All wars are bankers war."

Being a businessman, knowing that "tough time never last, tough people do." We should be in expansionary mode during bad times."

Why?

This is because "market move in cycles, boom-bust-boom-bust as sure as one season followed by another."

Theory of season is always based on the believes:

1. When the last leaves fall, winter starts.

2. When the last ice breaks, spring start.

Will you be able to fulfill orders, if you were to follow the masses and only start producing during spring? Definitely, No.

That's why an experienced and season businessman will always tell you "that's the reason to have a reserve, which is to save for a rainy day."

During winter, everyone else will cut production. Therefore, the supply will be diminished. As supply diminished, the demand versus supply mechanics will shift to the demand side and based on the law of demand and supply, the price will go up.

The law of demand and supply is the "invincible hands" coined by Adam Smith.

Therefore, "there is nothing new under the sun, it is human folly matching against the law of nature."

Moral of the story: Teach a wise man and he will be wiser.


Be Bless always,

Dr. Lion.