Sound investment principles. Everyone should be taught the basics as they’re growing up. We won’t learn in school. Much of which is in my books, but I’ve come to realize, the public doesn’t read and sadly, many can’t read. Hopefully those of us who are aware of financial education will pass it on to who we can. The more people who are awake to it, the better we’ll be.
There is no economic recovery and the mainstream has been trying to avoid the obvious but occasionally the information comes out. It’s so prevalent today that it’s impossible not to see it. If you’re looking at a secluded area, or a certain set of statistics generally known, you would conclude that as expected, a v-shape recovery is on now. But it’s quite the opposite. And sadly, people are standing right in the middle of it and can’t recognize how bad this really is.
The sheer amount of panic that investors have felt in a matter of a few days has been real. Even the new mascot for day traders, the guy from Barstool Sports, literally said he’s overleveraged and lost millions in an instant. When people take on more risk than they even realize, eventually they face the consequences. The stock market doesn’t need to have a major crash for people to lose their shirts. It happens when ignorance becomes a foundational principle.
The majority of people today have serious problems with their finances. They are running on fumes. Redlining it. Pushing it to the max. When a person gets a raise at work, they buy a new car, move into a new house, take expensive vacations, and generally spend more. They don’t have more left over at the end of the day, until their income goes far above the median level.
The stock market took another beating. And all the speculators have been wondering is, when will the Fed step in to help out? There can always be a down day, but 3 in a row? That’s impossible they say! At what point will people realize that this isn’t a game. You need to actually know what you’re doing. Amateurs are using options and the only thing they’ve been told is that stocks always go up so you really can’t lose. What a horrible lie they’ve been sold.
The economy and the stock market are largely disconnected. For some people, life is quite similar. No major changes. Still employed, same hours, same scenario. But for millions, without the ballooning safety net provided by the government, they would starve. The stock market has risen considerably which of course is largely owned by a smaller group of people. Those people are enjoying the appreciation of their assets while the bulk of the population struggles to persist.
The Federal Reserve has created a stock market bubble. It was the intention all along of course. There has never been a time in which so much enthusiasm has been present while so many are struggling with basic essentials like food and housing. A grand disparity has formed and will always find it reverting to the mean.
Jobs are coming back. Jobs are plentiful. That’s what we were told. But the jobs were offshored. The primary sector for jobs is no longer manufacturing, it’s retail. Lower paying in many cases but now in 2020, it looks like retail just got a big stomping on which has accelerated its decline. That’s not a good scenario for future jobs.
The market took a dump. Does anyone even remember what a down day looks like? I didn’t realize the color red could even show up on the screen. Well, I guess the ol’ buy the dip strategy is on the table again. Buy everything, as long as its tech because apparently tech can’t lose, ever. Well, at least that’s what I tell myself…
