I believe that “Don’t put all your eggs in one basket.” I think this is a general rule for everyone. There is a Chinese proverb has a similar meaning of that, which says “Clever hare has three burrows to hide.” It comes from a story from War Period (about 453 BC to 221 BC) of Chinese, Feng-Xuan advised Meng-Chang-Jun in the story. The proverb teaches us not to risk all at once.
Now, we are under the economic recession, it likes a tsunami drowning most of us. I think this is more important, it is time for us to think what the economy it is, and how we should adjust our life, especially in the economy activities. Investment always obeys the rule that high ROI (Return on Investment) implies high risk, low ROI implies low risk. But we almost forget that, so structured note, subprime mortgage, and other problems break out that beyond what we expected. We can hear people around us or on the news loss much property, even loss their wonderful retirement life. Lehman Brothers is a good example. They did more risk investment, and got a lot of money. At last, the high return swallows up their sense, so they may think the probability of the risk is so tiny that it is improbable occurs on them, and the magnificent dream will go on. But unfortunately, the tragedy fell on them. In a short time, they bankrupt.
So I think we should learn something from this calamity. In the past time, financial advisors always advise us to have diverse portfolios, which range from high risk to low risk. We are convinced that we must get some return in a long-tern investment. Therefore, some people invest almost all of their property into the structured note, stock, or currency when they accept the advice. On the news, a man invest all his retirement pension of NT 2,000,000 on the structured note only because he think they must get high return, but finally the structured note only values about NT 300,000. What a pity it is! I think we should be a little conservative, and don’t be a risk taker. I think it is smart to invest just a little part of your property, and leave some cash with you. Now, under the economy recession, cash is more useful.