Inflation defines as the increase in price of a market basket of common items necessary to sustain the life of an average American family. It seems inflation is the persistent affliction in a democratic free society that relies on the economic cycle as given in the “Wealth of Nations” written by Adam Smith. Many factors cause inflation in the western civilization but this author feels the most important is the stock market. Ivy league MBA’s with all the current education that work for mutual fund companies cause an increase in stock price every year. The reason for this condition follows as such: When stock traders buy or sell stock, they make a commission and the commission is added to the price of the stock. The natural impetus of human beings to generate commission also called stirring, in the stock market, results in a buy or sell commission to be tagged on to the current price of a common stock offering. This increase in stock price which happens with every trade, accumulates, the traders slip into their own pocket commission and the stock of price increases. Eventually with the accumulated trade commission, the stock is not profitable anymore, it is sold at a loss or disappears due to liquidation, and inflation moves on. It seems pertinent at this point to exert the government to limit the times a stock can be traded per year to limit inflation. The educated workers in the mutual funds coerce the wage earners to invest in their devices, promising a better return than a bank, and a prosperous future, at least as long as the market is bull and remains solvent. Intense speculation and trading may generate a stock market disaster, now called by the educated elite to be a correction, and those that lose in the market cry, the poor die in poverty and cycle starts again. It seems the consistent quality of a free capitalistic society is inflation and top heavy corporate infrastructure.
Sir Warren Buffett, the king of the mutual fund, in his amazing rise to wealth and national stature, ironically states these four things. Investing is a long term maneuver. If you want to profit from the market, become a trader and profit the commissions. Buy only stocks you know.
To an hourly wage earner like the most of us, video game companies who produce interactive gaming, game console producers like Microsoft and Nintendo, or cannabis growers who ensconce in northern California and Humboldt counties, like Mr. Buffett says “make sense” and can be the basis of a diversified portfolio. An average American shouldn’t buy technology or aerospace companies Like Martin-Marietta or Grumman Aerospace because they really have no idea what they are producing and the sixth generation fighter F-47 is no more than a Roger Ramjet pipe dream. This is where the inside traders, and let me remind you that inside trading is illegal, make a killing, because they buy stock the minute they hear the government is going to purchase 100 stealth jets at 100 million dollars a piece. It is not what you know, it is who you know. Like Sir Buffett, and the king of Saudi corruption Gene Getty, the adage “buy low sell high” is good and real and like Berkshire Hathaway, an investor watches the market and the economy as an daily ritual. This takes time and like on schedule R for renter in the 1040, real estate losses cannot be deducted unless an investor is 20 percent active in their interest in the offering. Like Sir Buffett admonishes, watch the market even though a person works an eight hour day, sleeps and goes back to work again, the next day for thirty years. The fourth thing sir Buffett states is have a diversified portfolio so in one aspect hits rock bottom, the others will still be substantial enough so on a mathematical average over time, the portfolio looks substantive so that darned wage earner doesn’t throw himself off the Brooklyn bridge, or cry “uncle”. We live in a golden age where everything now is electronic, and remote, and battery powered on a RISC-C platform that is energy efficient and everyone walks around with a personal phone and can watch adult entertainment off a hot spot pirated from the local Burger king. At this point in the discussion, read a basic Economic text inspired by the local community college and see that the economy runs in cycle, each product has a business cycle, and economic geniuses die and cant run the show to fruition anymore. Like he says in the four ways to wealth, watch the cycle and sell when things begin to go bad. Be on the lookout for economic geniuses that appear on the scene and go “all in” when you find one. Have hope and belief that God will smooth out the ridges and make the going smooth, give to church to bribe the maker, and pretend that the altruists will prevail after you take control of a country in a bloodless coup and put their treasury in your own pocket.
If the believe the foregoing, you have a good belief in God and the almighty, and remember that you have to go to school for a long time to make money on the market. If Mommy and daddy love you and pay the exorbitant tuition to go to Wharton School of business, than you can be a trader and become extremely wealthy as a buccaneer on wall Street. Remember, however, you need an in to run and she most likely loves you for what you are, not what the bank statement reveals. Give to the church and know that way down inside, the commissions you make will ultimately destroy the economy. Os