Reflections After A Conversation With My Rich Friend

I invited a good friend of mine who was born rich and loves investing over to my duplex last night. We spent time catching up, then dived into money and investing talks. This man knows many, many more things about making money in the markets than I do. I love talking to him. Below are my thoughts and feedback from the conversation:
Recessions last on average six to 18 months. We’ve had “growth” from QE and other market manipulations since 2009. That’s 8 years of bullshit economic “growth.”
This growth has translated into the majority of consumers buying stuff they don’t need or can’t honestly afford. This builds up debt on things like credit cards, car loans, mortgages. Not smart things to buy.
My money is going to move more heavily toward liquid cash and defensive sector positions in the market – health care, commodities, utilities. I’m not expecting to make much money in the coming 2-4 years in the market.
There needs to be some kind of bear market stabilization over a long period of time, say 3 months, for me to buy in with my liquid reserves I’m building now.
Wait for the market to stabilize. Wait for it. Keep holding more cash. Buy in after 3 months of stabilization. Don’t get suckered into buying on the fake troughs.
Aim to buy defensive sector positions each bi-pay period so your portfolio is still growing. Yet only put 15% of your money in here. Save more in cash and pay off those shitting student loans.
Most likely my peers are going to have worse retirement lives then their parents because my generation on an average have more debt and less income. Our parents, on average, are still fucked economically speaking (the model taught in schools isn’t working for them) , and they had an easier economic environment to work in along with a consistently growing financial market for decades.
Today we’re in an everything bubble and there is no sure fire path to make money with investments. For these reasons, I’m long on a technology career, long on a real estate business, and long on hoarding cash.
The previous generation didn’t have to contend with such an environment. It’s harder now-a-days and to win. You need to be smart, clever, cunning. If you follow the old model, and most are, you will suffer for a long time. Perhaps your whole life. Remember – the old model doesn’t even work for boomers or Gen X unless they intentionally saved to get rich.

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