Risks are inevitable when it comes to investments. The importance lies in how one manages the risks and whether he or she is compensated for it.
by Mohamad Shour and Nassab Helal -Source: Annahar
FILE-Protesters attack banks in Hamra street amidst deteriorating economic situation. (AP Photo).
BEIRUT: Strict measures implemented by banks asserted a feeling of fear among the Lebanese. These measures, which include limitations on cash withdrawals, money transfers, and prohibiting cashing cheques, reflect the deterioration of the economic situation in the country.
Nicolas Koborssi, founder of an investing service called Manix, organized a seminar titled “Why should I invest in a time of crisis?” on Wednesday. The discussion aimed to raise awareness on the dire need to pump capital into the economy.
“People need to be aware that a time of crisis should not act as a barrier to investment,” said Koborssi. “Money is nothing but a mere piece of paper prone to burning, stealing, and disappearing; storing it aside is pretty much useless.”
According to Koborssi, investment should not be retained to a specific time frame. On the contrary, in times of crisis, the power resides in the hands of the buyers and not the sellers. Economic turmoil instigates a reign of panic causing people to sell everything at a much lower price than usual. This being the case, the purchaser can fully negotiate the price desired making it an ideal time for investors.
“The economy revolves around the laws of supply and demand. These laws are governed by the Lebanese- people either increase or decrease demand,” Koborssi told Annahar.
Koborssi then stressed that if the Lebanese do not want the economy to deteriorate, they have to start investing to boost it.
“I’m not saying go and buy an apartment right away, spend your money wisely. Just don’t withhold it and do nothing with it,” he said.
Koborssi also explained that investments and calculated risks go hand-in-hand. According to the risk-to-reward ratio, risks are inevitable when it comes to investments. The importance lies in how one manages the risks and whether he or she is compensated for it.
Accordingly, studying the finances prior to making an investment is key. It enables one to make a well-informed decision. Nevertheless, there is no one hundred percent guarantee that a person might not lose the amount of money they have invested.
Tackling the fear associated with risky investments, Koborssi motivated attendees to step out of their comfort zone.
“Take that extra step and don’t let fear be a barrier,” he said. “By doing so, you encourage many people to do the same.”
People from across the age spectrum participated in the seminar. Many came with a passion, trying to find ways to aid their country’s economy to avoid collapse.
“The problems happening in Lebanon enable me to think what can we, the youth, do to help our country,” said Karen Kordab, one of the participants. “I learned that having a problem is an opportunity to create a solution.”
“How are we helping our economy when we refrain from investing? This makes the situation much worse on all citizens,” said Randi Menhen, another attendee of the seminar.