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Financial Intermediaries

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Factors that helped lynch achieve and help the economy to grow were his mottos like telling people that they must invest only in what they know. He only invested in industries that he knew very well. He did this by concentrating on what he knew and was well familiar with in order to avoid risks and uncertainties of unknown investment opportunities. Further more, he made sure that that industry was operating at glamour spectrum of the dim end. During his reign in Fidelity Magellan Fund, the institution demonstrated high price, profitability, and a perfect business model.

This assured him that his business was making money, attractive stock price and that the business had a competitive advantage. For a financial intermediary to boost the economy, lynch says that investors must look into the key numbers when looking at business fundamentals. Investors should, therefore, invest in companies that are in a strong financial position. But stay away from those with high ratios of debt to equity. Slow and cyclical stock growers companies should as well be avoided and when excited by a certain service or product, an investor should ensure that it sufficiently accounts for the total sales of a company. His advice to people is that they should avoid holding cash so as to avoid missing market upswings has helped many people to invest, thus boosting their living standards and economic growth and development in the wider perspective.

To be a good businessman, one should not fear the ups and downs of the economy. This helped US citizens a great deal in economically investing their funds. Moreover, it boosted the US economy through increased investments that strengthened their economic-financial base, rendering the economy to be better off.

Good management of the company also helped it achieve its goal as well as that of the economy. Lynch observes that for a financial intermediary to be successful, managers should be investor-oriented and very competent in running the business.

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