It is easy to understand that, for any plan that involves investments beforehand, oneshould prepare for the worst situation no matter how well it appears currently. When the profitsare higher, people are also taking greater risks. For example, as the real-estate market is highlyprofitable nowadays, many people invest all their money into new houses and some even raisea mortgage. The possible result is that once the market cools down and the house prices goon a decrease, the investors are more likely to lose the profits as well as the capital. Admittedly,putting all the eggs in one basket maximizesthe possible gaining. However, in unfavorableconditions, it also maximizes the loss.
In conclusion, it is unwise to put all your hopes into one possible solution. People shouldall learn the importance of avoiding risks with a plan B.
