*Investors Blog*

[SC Maintenance]

I think that's a bullish signal for the overall economy. There is tons of room for growth and gains to broaden out.

https://www.ishares.com/us/products/239693/ishares-msci-usa-etf

I have no crystal ball, but for the S&P493 to grow they would likely need better earnings, and earnings expectations continue to decline. Chart below is from Apolo. A bit dated but its gotten worse not better.

Mid and small caps are even worse. If the economy was growing usually they benefit also - but haven't.

Some keep talking about the "broadening out" that is supposed to happen but never does. I had some holdings in the RSP equal weighted ETF, but in the new year I sold it and moved that money to off-shore. Off shore had done pretty well comparatively - like 10% YTD, but not even close to my mega cap stuff.

 

[JeffKeryk]

Mid and small caps are even worse. If the economy was growing usually they benefit also - but haven't.

Some keep talking about the "broadening out" that is supposed to happen but never does. I had some holdings in the RSP equal weighted ETF, but in the new year I sold it and moved that money to off-shore. Off shore had done pretty well comparatively - like 10% YTD, but not even close to my mega cap stuff.

Spot on. The money is heavily concentrated at the top and is likely to be even more so.

 

[SC Maintenance]

Schools, by definition, are chartered to teach our children. Parents may not know personal finance, or may not even be around.
My parents taught me nothing about personal finance and my father was a Yale grad. In fact, his account swelled after he turned control of it to me.

The answer is pretty simple; it's about time in the market. And don't buy that fancy car, clothes, etc until your house is paid off and your accounts are fat.

Education is the answer. Now what people do with it is another thing... That's my opinion.

No, schools by definition are chartered to provide instruction. Learning is a personal thing. If kids choose not to learn thats on them.

What you want is being taught. Its a required course in most states and has been for a while. Like you said - its what they choose to do with it.

Hard to tell a 16 year old to save their money, don't buy fancy things, etc - and they go home and mom and dad have two leased cars in the driveway, take out on the table and maxed out credit cards. Of course our entire fake economy would collapse if they stopped maxing out their credit so we encourage it.

Continuing to blame the education system is unfair.

 

[blain450]

Continuing to blame the education system is unfair.

True, there should be some real-world experience inserted into the educational system.
A pause in between grade school and high school. A one year period where kids are required to work some type of service or manual labor. After the requisite year of "learning", they can then progress on to high school and beyond.
No participation trophies, just money earned by honest work. "Life" is one of the most effective educators going.

 

[SC Maintenance]

True, there should be some real-world experience inserted into the educational system.
A pause in between grade school and high school. A one year period where kids are required to work some type of service or manual labor. After the requisite year of "learning", they can then progress on to high school and beyond.
No participation trophies, just money earned by honest work. "Life" is one of the most effective educators going.

What your referring to used to be called "summer".

But parents want free day care, so "summer" gets shorter and shorter. It will be 2 weeks soon.

 

[alarmguy]

My point was, market wealth is highly concentrated in the top 10% of investors. Notice I said "greatly affects".
Sure Most working Americans contribute to their 401K, and that's great. But most do not even know what is in their 401K and the portfolio value of the lowest 50% of Americans is under $100K at time of retirement. If you step down to the lowest 30%, the numbers are staggering. The 2023 median account balance was around $3,691, while the average was higher at approximately $25,716.

If your not in the top 10% "greatly affects" I would think might be more severe
I get your point though but my minds reads it differently than what you post. I know all about the other numbers.

AS far as who knows what is in their account, I have no idea, my family circle isnt in that group who doesnt know. I will say this. For anyone who doesnt know, my advice would be split it 50/50 (depending on age) Nasdaq and S&P and continue to ignore it.

 

[alarmguy]

Schools, by definition, are chartered to teach our children. Parents may not know personal finance, or may not even be around.
My parents taught me nothing about personal finance and my father was a Yale grad. In fact, his account swelled after he turned control of it to me.

The answer is pretty simple; it's about time in the market. And don't buy that fancy car, clothes, etc until your house is paid off and your accounts are fat.

Education is the answer. Now what people do with it is another thing... That's my opinion.

100%
Call me a skeptic but I suspect the banking lobby does NOT want the young to learn how punitive it is to borrow money nor learn about amortizing loans. I have no faith baring a public outcry that a substantial involved national curriculum to teach the young about financial responsibility will ever come to pass. With 10's of billions or more in profit at stake the banking lobby will keep it squashed.

So in the meantime, let's talk stocks! Nothing else will change however there is ONE thing in this world, rich or poor you can invest in the market and secure your future equally just like anyone else by saving, investing, not over spending and not borrowing money. So let's not make excuses. I made my own poor choices but also some very smart ones. I have a daughter who took everything I taught and not make the mistakes I made along with the smart moves I made. She is doing well avoiding the mistakes part.

George Soros, uneducated ...

"Soros was born to a Jewish family in Budapest in 1930. His life changed dramatically when Nazi Germany occupied Hungary in 1944. At 13, anti-Jewish laws prevented him from going to school. He later described this period as "the formative experience of my life".....

"Soros left for London in 1947 at age 17 as communist control tightened over Hungary. He worked various jobs as a railway porter and waiter to support his studies."
Source - https://www.startupbooted.com/how-did-george-soros-make-his-money

 

[blain450]

Call me a skeptic but I suspect the banking lobby does NOT want the young to learn how punitive it is to borrow money nor learn about amortizing loans. I have no faith baring a public outcry that a substantial involved national curriculum to teach the young about financial responsibility will ever come to pass.

Are you saying they want serfs just smart enough to work, but not educated enough to get away from the lord's fiefdom?

 

[JeffKeryk]

If your not in the top 10% "greatly affects" I would think might be more severe
I get your point though but my minds reads it differently than what you post. I know all about the other numbers.

AS far as who knows what is in their account, I have no idea, my family circle isnt in that group who doesnt know. I will say this. For anyone who doesnt know, my advice would be split it 50/50 (depending on age) Nasdaq and S&P and continue to ignore it.

I would suggest learning. Your advice is spot on, up to a point. It's kinda like going to a Doctor... You get to a point where you need help.

 

[Mechanician]

No, schools by definition are chartered to provide instruction. Learning is a personal thing. If kids choose not to learn thats on them.

What you want is being taught. Its a required course in most states and has been for a while. Like you said - its what they choose to do with it.

Hard to tell a 16 year old to save their money, don't buy fancy things, etc - and they go home and mom and dad have two leased cars in the driveway, take out on the table and maxed out credit cards. Of course our entire fake economy would collapse if they stopped maxing out their credit so we encourage it.

Continuing to blame the education system is unfair.

What were once luxuries are now necessities.
When I once pointed out that A/C used to be a luxury, and isn't really a necessity like brakes - the hate flew.
How did anyone even survive a just century ago?

 

[JeffKeryk]

What were once luxuries are now necessities.
When I once pointed out that A/C used to be a luxury, and isn't really a necessity like brakes - the hate flew.
How did anyone even survive a just century ago?

I see your point, but there are bigger fish to fry. When the HS school student parking lot has better cars than the teachers' lot, well ...
Then there's credit card therapy... OMG.

Just my 2 cents.

 

[Mechanician]

I see your point, but there are bigger fish to fry. When the HS school student parking lot has better cars than the teachers' lot, well ...
Then there's credit card therapy... OMG.

Just my 2 cents.

Reckless spending is a problem many feel is far too personal.
I believe the difference between a luxury, and a necessity was never discussed, or taught to far too many people.
I agree personal finance should be required in all primary schools. Many will not learn, but the ones that do will be worth the effort.

We mandate English, SS, Math, and Science that many don't/won't learn. And much of that knowledge has less everyday, real world value, than finance would to an average citizen.

 

[ZeeOSix]

If you want a growing economy you need money supply creation in a fractional reserve system. There are many ways money can be created - the fed, the government, commercial banks, Eurodollar system (the biggest part no one knows about), and now the mag7 have figured it out also.

If money supply grows (the growth part is called liquidity) then people spend more, businesses hire more, eventually that money lands in the hands of someone with excess and they buy a stock. Money supply growth = economic growth and equity growth, generally speaking.

And it also leads to some level of constant inflation. Just don't want the inflation to go off the rails like we've seen lately, and why the Feds want to try and take measures to control it as much as possible. Just imagine how people's spending habits would change if the inflation in this country went off the rails like in some other countries where there was 50%+ hyper runaway inflation. This place would melt down in to complete chaos.

 

[k1xv]

What were once luxuries are now necessities.
When I once pointed out that A/C used to be a luxury, and isn't really a necessity like brakes - the hate flew.
How did anyone even survive a just century ago?

A century ago, average life spans were much shorter Many people with sub optimal health today would have been long dead a century ago.

 

[Dave Hess]

A century ago, average life spans were much shorter Many people with sub optimal health today would have been long dead a century ago.

That’s why you have to spend all your money before you pass away.

Children can get jobs, save and invest like their parents.

 

[Dave Hess]

And it also leads to some level of constant inflation. Just don't want the inflation to go off the rails like we've seen lately, and why the Feds want to try and take measures to control it as much as possible. Just imagine how people's spending habits would change if the inflation in this country went off the rails like in some other countries where there was 50%+ hyper runaway inflation. This place would melt down in to complete chaos.

I changed my mind about JP.

Next 3 rate cuts should be 75 bps.

Let’s crank up these markets as HIGH as possible.

 

[SC Maintenance]

That’s why you have to spend all your money before you pass away.

Children can get jobs, save and invest like their parents.

I think very differently. I grew up with absolutely nothing. I was the first in my family to graduate from college - much of it paid by academic scholarship or I would not have been able to go. Through college and likely first 10 years of my professional career any unplanned expense was a emergency. While it made me who I am, I don't wish that on my children.

I am fine with birthright privilege since my entire life I had to climb over those that already had it. So now I am here, I am going to enjoy the view.

 

[tbm5690]

I think very differently. I grew up with absolutely nothing. I was the first in my family to graduate from college - much of it paid by academic scholarship or I would not have been able to go. Through college and likely first 10 years of my professional career any unplanned expense was a emergency. While it made me who I am, I don't wish that on my children.

I am fine with birthright privilege since my entire life I had to climb over those that already had it. So now I am here, I am going to enjoy the view.

A good man leaves an inheritance for his children's children. It's not about handouts...it's about perspective that extends past yourself.

 

[JeffKeryk]

I think very differently. I grew up with absolutely nothing. I was the first in my family to graduate from college - much of it paid by academic scholarship or I would not have been able to go. Through college and likely first 10 years of my professional career any unplanned expense was a emergency. While it made me who I am, I don't wish that on my children.

I am fine with birthright privilege since my entire life I had to climb over those that already had it. So now I am here, I am going to enjoy the view.

I am not sure what to do with my money. At 72, I need to figure it out. I believe in helping, giving tools, etc, but not handouts.

 

[k1xv]

I am not sure what to do with my money. At 72, I need to figure it out. I believe in helping, giving tools, etc, but not handouts.

At 78, I have formed a trust. In it, I leave money divided in separate trusts set up for four children, ranging in age from 1 to 14. In each of these trusts, before age 25, the income and corpus of the trust can be used for education and living expenses while full time students. At age of 25, they are entitled to half of the remaining assets of the trust. At age 35, they are entitled to everything left in their trust.

That way, education is covered, and they don't get any real money until they are hopefully mature enough to use it wisely.

Two of these kids are children of a mother who passed away from cancer at 41. The other two kids are grandchildren of a very close friend who died suddenly at the age of 58, and therefore is not there to provide any help.