The jobs number was absolutely incredible today. We even got ol’ U-6 down 10 BPS. I know that for many in the ‘doom’ crowd, U-6 is their ‘beloved number’. We even moved that metric lower. Regardless, everyone and their brother is talking about the jobs number today. As well they should.
But with the launch of Sharpe Trade, I have had my mind on another matter.
Sharpe Trade is obviously, very much about education. Sharing, much of it for free, what I have learned in my nearly two decades spent around this industry.
When doing so, I am often asked if it would not just be better to give your money to a mutual fund, and let the mutual fund invest it? After all, they are the professionals, right? Why am I so concerned about sharing what I have learned?
Having someone else manage your money is definitely an option. I’m not going to sit here and look down on anyone that makes such a decision. But like any choice in life, there are pro’s, and there are con’s. In the “for” column, we could say that it free’s up your time to persue other matters, while a professional manages your money.
But the positives? Oh my …
I could mention that some of the people I have coached and mentored over the years have gone on to land jobs at various firms. Whole careers opened up to you.
You are better educated as to the world around you, and the way things actually work. Do you remember when everyone was bleating on and on and on and on about the “Collapse of the Dollar” and hyperinflation? Boy I sure do. It drove me nuts. I didn’t point out the foolishness of ‘hyperinflation’ because I am an inate genius. I pointed out the foolishness of such thinking, because I had been around the markets for 15 years at that time, and I knew that the mechanisms being discussed in favor of a supposed ‘hyperinflation’ were nonsense. The markets simply did not work that way. I couldn’t be fooled with what I refer to as the “hyperinflation scam” because I had been around the markets for a time and I knew the way things worked.
Managing your own money improves your view of controlling your own risk. Not only is there less of a chance (though still a chance) of someone abscounding with your hard earned money through some sort of scheme; but at the same time your skills at managing decisions where risk is involved (which most decisions in life are about risk of one form or another) are honed like a razor blade.
Today is Friday. On Friday’s many folks like to share a piece that they have either read, or watched throughout the week. So I’ll do the same here. If you have some time? Tom Sosnoff and Tony Battista of “Tasty Trade” recently ranted on this very subject. And once Tom got started … he really got started. He brings up what may be the most important reason of all. I personally thought their piece was a slam dunk … (and let’s face it, we all like a well articulated rant now and then)