Speculator or investor

Housing bubble, tech bubble and the Gold Rush were driven by speculation.  All "bubbles" need speculators. 

One of the things bubbles have in common is that ordinary people are swept up.  People talk about how much money they can make, and you would be crazy if you failed to participate.  Speculate in real estate, put money into some unknown tech company or buy into an untapped mining claim.  IT IS A SURE THING! 

Another thing about bubbles is the further removed you are from them, the more rational you can be about them.  Take the Gold Rush.  Is it rational to think a dentist from Missouri should leave his practice to go to California or Alaska and search for gold.  Being so far removed from the hysteria, we can easily see how stupid it was for people to think they would make their fortune by pursuing such a stupid idea.  

It seems amazing that speculation is sometimes (often?) driven by rational analysis.  In the housing bubble, some economists said, "There is no bubble, because we are at full employment.  While we have full employment, the demand for housing will continue."  

Unfortunately, as soon as building slowed a little, jobs started disappearing.  As people lost their jobs, houses ended up in foreclosure, and everything quickly spun out of control.

Investors, by their very nature are more plodding, more objective and more patient.  Investors want to see positive growth, but they know not to expect too much.  Investors need to know something about their investments, or hire someone they trust to manage their investments.  Investors stay away from unsubstantiated claims, "This is the chance of a lifetime.  Nothing like this has ever existed.  THINGS ARE DIFFERENT THIS TIME."  

Perhaps things are different, but more than likely, they are not.  Although past performance is not a predictor of future performance, it is sure helpful.  If things are really different this time, an investor will let others speculate.  The investor wants something more predictable.  Not a hollow guarantee.

Investing in college is something that you can pin your future on.  College graduates are more successful than their peers in almost every category you could consider.  In earnings, college graduates tend to make a lot more over a lifetime than their peers who fail to go to college.  College graduates are also more likely to have more successful relationships, and a better work-life balance.  

Do not speculate.  Invest in your future.  Go to college.  Come to Oak Valley College.