Why the Rich gets Richer

I got my fifth payout this week. By now, with my own downline and the spillover effect of a binary matrix, I am getting more than the 12% (actually 7.4% if you do the math) promised me.

Do I still think this is a high-risk venture? Yes, by its nature it is a high-risk venture, but it is a venture that banks and hedge fund traders are doing day-in and day-out. And the risk factor is the reason I believe why many rich are getting richer. They can take risks that "mere mortals" cannot.

To put things in perspective, can anyone afford to lose USD1 for a super-low chance to win USD1 million? Most people will shrug and put in the money. We call this the lottery. The lottery sells hope to those who participate in it, because the loss is insignificant but the possible gains are large, even though the probability is less than 1-1.

Can many people afford to lose USD1300 for a 7.4% monthly income, but with the chance that any moment they may lose that USD1300 totally and not recover it? Some people will shrug and put in the money. We call these high yield investment products.

Most people cannot afford to physically lose the money as they live paycheck to paycheck. Most people cannot afford to psychologically lose the money as they see the USD1300 as hard earned money that they would rather put in the bank.

Then we come to the real playground - the astronomically rich who can shrug off losses of tens or hundreds of thousands, and who can actually do their due diligence and determine that several millions in a venture capital is not an issue to their wealth. We call these venture capital, hedge funds and trading houses (likely in-house of banks).

Staggering amounts of money are made at that level, simply because losing that amount of money, for the amount to be gained, is of no consequence. A fund manager who puts aside a few millions to buy up options can afford to shrug off the losses if the options do not hit the strike price - simply because these money are otherwise not deployed and in effect losing money for the money manager.

And such is our world. The rich gets richer simply because they can afford to make investments with risk factors that we cannot take.

And indeed many of us simply cannot afford to lose tens of thousands of dollars, but how many of us can afford to take the risk with USD1300? It is a good first step into the world of financial freedom, into a world where one gets a constant income coming in from money that would otherwise have gone into, perhaps, another luxury product.

To find out more about Sensei Michael's latest investments, please Contact Sensei Michael.

Comments

  1. […] the HYIP has been doing as promised, delivering payout after payout. Again, I am seeing for myself why the rich is getting richer. There are those who can afford to take the risk. There are those who cannot afford to do […]

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