Courtesy of EconMatters
We discuss Sallie Krawcheck and how she like a lot of corporate executives didn`t properly hedge their wealth, and gave away fortunes of gains back to the market in the form of destroyed capital. Money is made out of thin air, it doesn`t actually exist when we are speaking in terms of paper created financial market wealth, you haven`t made anything until you close out positions, sell your stock options, take this money out of the market, diversify your resources from an exposure standpoint, and buy something that will retain some form of financial value.
Whether it is physical Gold, Real Estate, Tree Forests, Businesses, Factories, Ownership Stakes in Companies, Art, Rare Antiques, Fine Wine, Swiss Watches, Collectables, Alternative Investments, Savings Accounts, etc. but factor in all the associated costs involved in these investments like taxes, storage costs, insurance, and security (research the depreciation factor of your diversified investment choices) and avoid the "money pits" investment vehicles. There are tradeoffs all along this spectrum of diversification investment choices, know the tradeoffs, but get your money diversified from electronic, paper markets where capital is destroyed and lost many times over in the history of financial markets!
