MarketWatch is here to inform you that it’s as simple as this; get a financial adviser.
The No. 1 difference between millionaire investors and the rest of us
You see, if your financial adviser is like the one I used to have long ago (ex-brother-in-law) she will just take the nod from the Federal Reserve, not try to strategize the market and carry the mantra ‘In Greenspan Bernanke Yellen Powell we trust!’; it’s as simple as that. Put ’em all-in, keep ’em all-in and let the commissions roll in.
You see, it’s a game of Risk. If your financial adviser is like my former guy, he just sets it and forgets it. Now, forget the fact that you could employ the same strategy – probably to greater effect – by buying the S&P 500 (SPY) and going about your life. But there is an industry out there that needs you to believe it’s more complicated than that (I understand some advisers sell insurance, do estate planning, etc., but work with me here). Where the stock market is concerned, there are variables at the margins (Semi/Tech, Global, Emerging, etc.) but the whole gambit is a big, bloated, policy-supported bubble.
Let’s call it what it is. So you are too dumb to just buy the SPY or let a financial adviser keep you ‘all-in’ on the way to being a millionaire or billionaire investor. If you are dumb like me, you manage risk and worse, you time the markets to a degree frowned upon by adviser herd (and the Wall Street media supporting it).
In fucking Bernanke we trust! Also, the other ones too. They are all using the same playbook. When the continuum (and other indicators) say inflate, they inflate. Simple as that.
The only problem is you have to suffer through some rude interruptions and then hope that the Continuum is aligned such that the Fed will do what the ‘all-in’ crowd wants (as in Q1 2020) and not what the Continuum says it will not do (as in Q4 2018). How dare you think you can go it alone? You’ll never amount to nothin’!
The Yale School of Management supposedly made an unbiased study but it reads like an infomercial for the Financial Services industry.
When wealthy people think about how much of their investment portfolio should be in equities, the most-cited factor influencing their decision is advice from their financial adviser.
When investors from all rungs of the income ladder make decisions about equity exposure, they’re most likely to be thinking about their risk of illness and injury expenses.
The article goes on to discuss “the advice gap”. Make no mistake, history under the more cynically managed markets of the Greenspan era through this very day proves these wealthy do-nothings to be 100% correct. Just go all-in with your adviser bearing the worry (hint: only the reputable ones worry, the others collect every form of commission you can imagine and worry only about how to grab more because you the customer are the food, the fuel, the product).
As long as the Fed is able to control the financial markets in service to the rich, the racket will lurch forward. The resulting inflation will drag on regular people and further enrich our friends in the millionaire and billionaire classes as the goal of asset price increases comes to fruition yet again.
It’s America… great again. Just as it was (with a few rude interruptions) from Greenspan on through Powell. Just hope that Toto does not tear the curtain completely off its hooks.
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