Swim in your own fishbowl

Referring to the post dated 1/4/2015 (The large fshbowl), I would like to suggest a solution, or the best thing to do in relation to the fishbowl issue …

Let me stress that I will not refer to popular revolts or things like “go home”. My purpose is to suggest solutions that can be applied by everyone

The fishbowl model, i.e. a system when the supply and the demand are no longer decisive parameters for the market trend, cannot be totally bypassed. The only thing that we can do is to avoid needing water … which means that we should create our own fishbowl!

In other words, the true risk of this type of market is the focus on speculation instead of on passive income, which we can regard as the “creation” of water. In fact, speculation can be oriented at the discretion of those who create and destroy liquidity: actually, it is more difficult to direct the income resulting from an asset.

As for non-performing loans and the assets that grant them, we should assess both the current market value of what we purchase and the income that they generate. In case of unfavourable market conditions when the asset loses its value or there are no buyers (little water in the fishbowl), there will certainly be more favourable conditions for the leasing, and our assets will generate the income necessary to maintain and create value.

This condition can be applied to all sectors, with the right differences and proportions. The underlying concept is to tie up the money – whose value is always lower – into something profitable. This is the only way to always have water to fill our fishbowl.

Emanuele Grassi