Thursday, May 10, 2007

Risk, returns, and labour arbitrage

-How much risk you are willing to take will determine how much gains you can make (if you don't know what risks you are taking you're in trouble).

-Since you're job (and more broadly your country's economy) is probably competing with one in China or India or elsewhere, eventually your salary is going to go down. You should invest your temporarily higher income so that you will benefit, not lose, from this transition.

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