#deckchaireconomist

[tycearnol]

Indexing your future.

This is going to be the shortest post I've ever written.

I was asked AGAIN today; "I want to retire early, what to I invest in to make money fast"

You can invest in either a miracle and retire early or invest in Index Funds and retire wealthy.

Get rich quick schemes are bullshit so, unless you're prepared to work your arse off and/or you have an idea that becomes the next Facebook, Amazon or Alibaba you're best bet is to invest a portion of your income into "safe bets" and the safest bet is index funds

[tycearnol]

Protect what you love.

Yesterday, I took a step towards a future I could never see myself taking, by doing something I swore I'd never do.

I enrolled in a course that will be a "Bridging course" to enable me to use my previous studies and qualifications to eventually complete a Masters Of Business Administration (MBA)

Why?

To answer that, I need to explain why l left finance.

Firstly, I fucking hate banking. Not the work, the principle.

I watched people with little to no savings or investments (excluding the equity in their homes) have their mortgage interest rates increased as per their respective agreements and due to their having no "leverage" they would not be able to negotiate a reduction in their new rate but....

On the other side of that spectrum, people with several investments like term deposits, property, businesses and handsome share portfolios could make a quick phone call and almost without question negotiate a reduction in their new rate because, the loss of income the bank would take for an extra half a percent on their mortgage outweighed what the customer had invested in the institution in other areas.

It was this sort of action, essentially "shitting on the little guys" that I hated and lead me to dropping it all and pursuing my lifelong dream of joining the military.

So now I'm in the Army, and I'm loving what I do, I shoot and blow things up for a living, what red blooded dude wouldn't love that?

Yes, it's awesome and yes, it let's me work on my other passion (wood working) in my spare time but, as always is start noticing patterns and that leads me to my new path.

I realised that in the last few years, my body has taken a beating, career progression is a very disjointed path and because of that, pay rises are next to non existent and so, I can't see this job having a long term viability.

I have a beautiful partner, the coolest dog and plans to have kids in the next few years so why not use the tools at my disposal right now to further my education in something I'm good at to do exactly what the Army has taught me.

Protect the future of what I love.

[tycearnol]

Truth Is Like Poetry and Most People Fucking Hate Poetry

-Unknown

[tycearnol]

What do I look for in shares?

To put it plain and simple, I can sum it up in one word;

Diversity.

So many day traders get fixated on the types of companies they have been previously successful with and lose sight of other potential assets. No matter what you won big on, always keep your eyes scanning for other sectors to find profit.

I know someone who struck a profit in the small lithium mining boom recently but completely overlooked the sister company explode into the gold scene from $0.84AUD to $7.62AUD in the same period he held the lithium stock.

Same parent company, same directors, same vision, the same everything.

Don't get fixated.

[tycearnol]

Triggered by Twitter

I have expressed my opinion on Bitcoin and Crypto currency in the past and let's be honest, this Twitter post trigger me.

Firstly, if you're anticipating the death of your parents for your "get rich" plan to kick off then shame on you.

Secondly, 1% of 30 trillion is 300 billion so it won't be a "multi trillion asset class"

Finally, 300 billion / 21 million (the maximum number of Bitcoins) is 14,285 and some change. Sure, if the best case scenario were to happen there would be fluctuations above that number but 50k per coin? Not a hope in hell.

[tycearnol]

Weekend business

Even though I'm currently away for work, I still grab the opportunity to keep up-to-date on Business News where I can and today, a report from The Australian Business Review really jumped out at me.

Since the royal commission, there has been a significant drop in lending which is causing the national median house price to drop 6.3 percent with Sydney leading the decline at 10.4 percent.

Well no shit.

This is and always was going to be the result of a royal commission and it pains me to say, its only going to get worse because as finance becomes harder and harder to get, and the myriad of bad loans throughout the country become more prominent, borrowers won't have the ability to simply refinance to ease stress when things start to get a bit tight because they are paying a million+ mortgage for a two bedroom shoebox on the outskirts of the CBD when they earn 65k to 80k a year so they will have to put the property to market and find something more suitable to their budget.

Enter "Supply and Demand"

With all these loans going south and an influx of property heading to the market in an attempt to escape bad debt, that is going to drive the property market further into the ground because no one will want to buy your shitty two bedroom shoebox for the million you paid for it when there are hundreds of others to chose from.

The buyers market began when the Royal Commission finished. I just hope the rest of the economy doesn't bleed too much because of it.