The year of small boys with trading accounts
The amount of money that has poured into investments over the last year is at a rate never been seen before from the retail market (that's you guys).
It's awesome that the average people are starting to invest, it's the only way to shift away from working for money to being truely wealthy.
And most of you can see that stocking cash won't get you there, I'm so glad you guys are seeing that.
It's also now easier than ever before to invest, transaction costs are fairly low, no need to go through human broker.
The thing is the investments that the average millennial (typically men) are going into are based on no financial knowledge & no consideration of their lifestyle.
This is where we see Tesla & crypto sky rocketing, with no basis on the fundamental value.
If you seriously want to build wealth you have to set up the foundation from the start, most people are going straight to the last step which will not support them long-term.
1) The first step is to know where you want to go, what kind of life do you want?
2) Understand assets classes and how to blend them to support your goals in a flexible way.
3) To understand the characteristics of investment. Build an investment philosophy based on MATH, FACTS, personal preferences, values, goals.
4) The final step is to choose the investments, and once you understand how the market & investing works you would NEVER choose just one speculative investment.
This is 101 stuff you guys. But how would you know because you were never taught it?
I get it.
Learn it before you go in, spend some money to get solid advice, read some books from investment G's (something on Warren Buffet or by the Barefoot Investor) NOT from some 24 year old hippie who had an awakening from ayahuasca and watched a few youtube videos.
Then you'd know how to use the power of compound interest & dollar cost averaging.
You'd know that trading every day & looking at your portfolio constantly is actually not the way. That this is really for the totally uneducated, unsophisticated small boy.
You certainly wouldn't be pilling into to assets that 80% of Burning Man are invested in. You'd see that it's been totally blown up way above intrinsic value (if you can argue that crypto has any intrinsic value at all).
You'd see the massive reg flags carried by the herd of excitable children in mens bodies pouring into gold, crypto & speculative stocks.
You'd see that it's gambling.
This this is not investing.
Some will win, but most will loose.
When you actually INVEST in an educated way (not picking individual stocks, or trying to time the market) most will win. That's math.
But most can't see this.
But maybe you can see it, maybe you can feel something is off with it all, maybe finding this is exactly the affirmation you needed that....'yes, it's off'.
I'm talking to those who have some level of intelligence to see beyond the short-term. I give up on the rest of you, but keep on sliding into my DM's because it's great content.
I'm talking to those who know that bringing in income today comes from their ability to earn an income, not from a promise of get-rich-quick.
I'm talking to those who have the forsight to start thinking about their future self, no, actually not just thinking, but are ready to take action.
I'm talking to those who perhaps have most of their money in cash because it feels like the wild west out there and they are afraid (and rightly so) to make a move.
I'm talking to those who want to make educated decisions around their money, who want to UNDERSTAND, who want to feel confident in the decisions they make.
Who are prepared to build wealth, in really the only way that is sustainable. Who can stay on the track even though it's not as shiny, it takes time, it takes starting now, it takes learning the fundamentals.