Trade is an inappropriate word. As I shared in an earlier post, we are exchanging things that we own, but making bets on value that we can claim sometime in the future. We trade our expectations on growth.
On that journey toward a financial endgame, we hope to accumulate a substantial portfolio and trade the assets accumulated in that portfolio. The trading never stops. Capital accumulation turns into capital allocation as we seek to create income flow determined as necessary for sustaining ourselves during our convalescence in a nursing home.
From what I have observed of investors, they seem locked into a pretend future portfolio value as if it is owed to them. They fail to realize that it will take people working real jobs to create the revenues and profits that create the returns on their investment and retirement accounts. They are divorced mentally and emotionally from the symbiotic relationship between investor and wage earner.
This relationship is rather imbalanced. The wage earner or doer is required to generate the yields for retirees who have left their productive years. Even if retirees were to get back into the employment game, they would likely provide little to no value as their knowledge is antiquated and their networks long dead.
This is why I have been long opposed to government pension plans where government pays a retiree for doing nothing for the next forty years of non-working existence. In that capacity, nothing was produced outside of programs that encapsulate political payoffs and tax notices while employed in government. Why add insult to taxpayer injury?
So, for us doers, us wage earners, what do we have to trade? And after we accumulate our pittance of capital, how and where do we allocate it? How do we flip that dollar for additional income?
(Ready for your next trader challenge? Visit https://traderswithedge.com/?r=348)
Alton Drew
Stardate 2024.426
Disclaimer: The above post is not provided as investment, trade, or legal advice. Please consult a legal and /or investment/trading advisor before making an investment or trade. Affiliate links are included in this post. I may be compensated should you click on a link and make a purchase. Please visit the advertisers on this page. Thanks for reading this post.
Lawyers Write the Bets. Bankers Sell the Bets. 