In 1960, the richest per capita city in America, according to the U.S. Census Bureau, was Detroit.Detroit was once the pride of America; home of the car industry, and centre of the Motown music scene. Detroit’s economy was still centered around the auto industry even after the car companies began leaving the city, but in the 1960s and 1970s the US auto industry also began to face increasing competition from European and Japanese imports. Jobs with auto parts suppliers and other related industries have eroded steadily since that time. Detroit lost 325,000 residents from 1950-1970, and the diminished tax base became unable to support the city’s infrastructure. Hundreds of thousands of properties were abandoned. City services were reduced, which led to increased blight and crime. Unemployment and poverty continue to grow to this day.Now the once famous city for motor industry has filed for bankruptcy.A once bustling town and epitomising the American dream. A look into its disintegration shall bring to light how not adapting to change can lead to how did it disintegrate so quickly is worth noting.
With time the Auto industry begin to prosper as it faced new and intense international competition, particularly from Japanese and German makers. This decline was mainly due to automation.One of the main reasons were its labor intensive workers were not willing to step forward and undertake the task of developing new skillsets. Yes, automation was setting in and it definitely needed more skilled individuals to handle the jobs. With the Detroits residents not stepping up outsiders started occupying the relevant positions. The growing disparity lead to unemployment increasing by the day. Finally , this translated to reduction in its peak labor force from 90,000 around 1930, the number of workers there declined to 30,000 by 1960 and only about 6,000 by 1990.
Taking a leaf out of this story we approach the market in a similar manner – casual approach. We believe that we need to visit the market and wait for the market to open and then transact. You may ask, ” Isnt it what we are supposed to do?” Yes, you should look out for qualified opinion from media , or your favorite Whats App group or even from your broker. However one should remember that one is deploying ones hard earned / saved capital into the market. This capital is the only thing which is finite in the market today.So every rupee needs to be guarded the same should be done with utmost care. This can happen only when we equip ourselves.In today’s world of information overdose it is important that we are able to dissect the information and turn it to our advantage. It is alright if you are following the market movements and engaging in stray participation .However if you are serious about the markets and wish to make some gains its best done by educating oneself in the area of Technical or Fundamental Analysis so that one does not deteriorate his capital.Stock Markets are the only place where there is an evergrowing need to be curious and updated. Its best done when you get started by seeking the path of knowledge which makes your application more fruitful.