AIMS EDUCATION

Finally, a reserve permits investment over a period of time rather than all at once. Some "experts" feel you should back what seems to be a good situation with all the investment funds at your command. Others will warn against greed and advise partial investment to spread the risk.

This article is not the place to discuss the merits of either philosphy. The point is to give yourself the flexibility of moving whatever way "your" judgment dictates.

Your Personal Situation. Your age, health, the number of dependents you support, the kind of job you have, or the type of goals you have set for yourself are just a few of the possible factors that will weigh into your investment decisions. Unfortunately, there is no rule, no prescription, no secret formula to follow.

The story is told of two salesmen who met at the airport. Their conversation went something like this: "How's business?" asked the first. "Oh, very good," said the second, "and yours?" "Fine, fine," said the first. "I got orders for a thousand gross last week. I sell buttons." "Really," said the second. "I've had one order in the last three years." "and you call that good?" said the first. "Actually yes," said the second, "I sell suspension bridges."

• Like the salesmen, the investor must have a clear notion of his goals and expectations and they must realize what is normal and acceptable to someone else might not be what is normal or acceptable to them.
• What Kind of Person You Are.
• Consideration of your investment goals brings up the final point of personal evaluation - You. Very simply because your goals are a reflection of your temperament and personality.
• You must go beyond your goals and pin down the traits and characteristics they stem from. Are your goals realistic? How do you regard money? How do you handle it? Are you easy-come, easy-go or do you count pennies? Are decisions involving money difficult for you to make? Are you on top of your budget or always running to keep up?

These are generalized questions and there are no absolute answers. Speculators should stay out of the market, but on the other hand, being a tight-wad is no virtue either. An overly cautious or conservative temperament may not be well-suited to react to the ever changing market conditions and thus miss out on opportunities to sell or buy.

• The value in knowing thyself and how you will likely respond in a variety of financial situations is vital. Any personality type can count profits but it requires a certain rigor, a certain fortitude to face up to the adverse situations that investing unveils. If you have a character flaw, losing money will quickly expose it.

In a now famous pronouncement, the elder Morgan stared at a questioner who wanted to know what stock prices would do and he said, "They will fluctuate." The statement is as pertinent today as it was then. As a result, the question you must ask becomes, "How will I respond when they do?" If you "Know Thyself" you'll have the answer.