One of the best investments an enterprising investor will ever make, is an education. It’s something that cannot be taken from you and will help improve your cashflow. I wanted to share a timeless resource offered by the Mises Institute.
Henry Hazlitt, in his book Thinking as a Science, offers a clear framework for reasoning. Of all the advantages you can bring to the workplace, negotiation, and life in general a clear ability to reason is the best. Though the book was written in 1916, its wisdom and application are without question every bit as valuable today as ever.
Our last post about how to save money articulates that consumers wants are insatiable. Further, knowing that resources are limited, you must allocate them appropriately. The real point here is about recognition, or “knowing” that consumers have insatiable wants and immediately applying that to yourself, because you too are a consumer… someone who buys things.
Much of the secret to financial success centers around psychology (coupled with methodology). It’s precisely the same for weight-loss or anything else that requires personal discipline. By learning and applying key distinctions, you can experience success you never thought possible. One of the distinctions to be made for young investors, is that you simply have to begin. The philosophy is best understood by a brief couplet attributed to Goethe (with help from the Scottish mountaineer W.H. Murray).
Your 401k is one method of saving money, but there are others. As a company, our primary goal is to empower our readers toward a better future. We do that, not only through our 401k trendfollowing newsletter, but also through educational content. For most people, from our abundance, we want to do two things… Invest and help others. A quick peek, with eyes open, and you’ll see so many are struggling. You will not be able to help anyone if you don’t first help yourself.
Today’s topic is a sub-topic of economics, which is the science of production, consumption, and distribution of resources. You’ll find in later posts how simple rules of economics, such as supply and demand can be applied to investing in a way that you might not have previously considered. (more…)
A good investment primer from Dr. Crosby about the psychology of investing. I thought this piece was most applicable, not for the investing wisdom, but rather for the life application. His real message is “do your own thing”. You have to be yourself to be successful. We want you to be successful.
Or maybe the title could be… “Why aren’t we buying bonds?” I could give several lengthy explanations, all of which would center on the problem of government intervention in free markets. It’s enough to know that our trendfollowing model works in spite of the government. That being said, we’ll start with a simple look at historic interest rates. The Federal Funds rate is the overnight lending rate between banks and essentially the base rate for all fixed income price models before the various risk premia are included. Knowing that most eyes will glaze over as I use industry language, I’ll keep this very short and simple. The lower the overnight lending rate is… the lower every other form of interest will be as well.