Do you ever wonder where the clients yachts are? Wall Street has defined investing as a game to fill their pockets, not yours.
10 years from now, I believe we will look back at the world of investing(stocks and bonds) and laugh at the idea of trying to guess where the market is going or what’s the next hot stock. Instead, public financial markets will be your liquid exposure to going long on global capitalism.
As time moves on and technologies improve, your real net worth as investors will be enhanced through the private market place. Many vehicles exists already today, making this historically illiquid part of the market more available and liquid to us normal investors.
While living in Austin, I was fortunate to work with the recent Nobel prize winner Eugene Fama. Like most brilliant minds, he had the ability to explain very complex things in a simple manner. One of my favorite Fama quotes was, “your portfolio is like a bar of soap. The more you touch it the less of it there will be”. Unfortunately, Wall Street prefers us to touch as much as possible, thats how they get paid.
As someone who has seen the fragility of life firsthand, I CANNOT do work that is not purposeful and right. It took me years of research and asking of the brightest in the financial industry…my advice, buy index funds. By the market, don’t gamble, and don’t listen to CNBC. Hire an advisor and go golfing instead…just make sure your advisor is smart enough to admit he isn’t as smart as the market.