Optimism VS pessimism

I came across TED talk suggesting we human like to focus on pessimism things. Our brain has a part specially made for us to alert the possible danger threatening our survival. Thus, we tend to amplify the bad news and ignore good news. Let me give a few of examples of bad news and good news, see if the claim is true to you.

Bad news
Euro zone might break down, US economy is crawling and global economy will continue to be bad, China economy is slowing down. Many companies are either cutting job or freeze hiring, employment picture continue to be bleak. If middle east war started, everything will be gone.

Good news
Like never before, educated people is growing at the fastest pace, from China India to Africa, due to growing internet coverage and abundance of information available at almost no cost. Furthermore, mobile phone and Internet coverage are spreading fast in poor and developing countries.
Some research has found a way to convert any source of water into drinkable water, and coca cola is dumping money to develop the technology further.
Solar energy cost has come down more than 50% since last decade. Abundance of energy can be expected.

We human had overcome problems again and again. Although there are problems lie ahead of us, the TED speaker suggest that ultimately we human will find solution. He emphasizes on the good news and suggest that this decade and coming decade will be the most important period of human success.

My investment strategy

I find this period of financial world is in chaos, very much like the early stage of three kingdom in china history. There are lots of opportunity and trap along the way. In order to succeed in this period, a sound and solid strategy is needed.

My strategy is simple. Find undervalue stock with clear growth path, low debt, sufficient cash; or very good company with fair value but not catching much market attention. Find a few of them with different business nature so to diversify the portfolio. Plan ahead sufficient available capital to invest for upcoming financial crisis.

Limiting to the undervalue quality or good stock, when financial crisis come, the stock which drop the most will offer opportunity to buy cheap, the stock which do not drop much means it has the strength and will gain attention to pick up faster when the market recover.
Because of that, it should be wise to invest equally to every stock when financial crisis arrive.

Beware of scam

Market have those kind of businesses that they sell certain ordinary thing with extraordinary price. They will add some features that cannot be trace by technology or scientific proof. Some of the examples are ordinary thing but add in fortune teller wisdom, feng shui, religious feature that will bring good or modify for good things for your life. I am not sure why superstitious will become so popular in the main street, among educated people, but I think this is not a good phenomenal because it will draw in con man to create scam, as those "value added" cannot be explained or proof.