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Brainstorms: The Type Of People Attracted To Markets
Not for everyone
If you are reading this then you are a specific type of person. Few people have the intellectual curiosity to challenge themselves and actively take risks.
When you operate in markets, you recognize the power and value of information:
In the information age, you simply need to be at the right place, at the right time, with the right information to succeed
The thing I love most about this is that my success or failure is 100% on me. I am responsible for gains and losses. You can blame the market but at the end of the day if you focus on the things in your control then success is inevitable.
When I think about these challenges, I remember that I simply need to focus on the things in my control and work incredibly hard on those things:
Depending on where you are in the economic cycle, the skillset of interpreting markets and working hard can have different payouts. Why is this? Because when higher volatility occurs, a higher frequency of decisions needs to be made in order to maintain returns or achieve superior returns.
We are currently late cycle and we are about to have some big moves in equities and bonds (see this article for my views on this):
Big picture though we are beginning to see the late cycle signals:
Real rates are incredibly high and elevated on a cyclical basis
And we are seeing other signals as a result:
However, the primary thing to quantify is this current period of time where recession ISN’T occurring and growth is remaining resilient. The timing is KEY! Transitions and inflection points are always times of confusion for most people.
As I said above, those who have the ability to interpret and adapt to this environment correctly will be the ones who benefit tremendously.
Feel free to reach out any time via Twitter DM or email. Even if it takes me a little time, I will always respond.