The Problem With Economists Who Are Too Smart

I’ve been juggling a few too many projects this week and I apologize for the lack of in depth writing lately. I’ve got some good ideas to write up some predicts for 2021, for the post-Coronavirus Crisis world and yet more potential stock picks in my head, so rest assured I’ll be cranking the good stuff out for you all into the new year. Before we jump into a couple passing deep-ish thoughts I’ve had lately, let’s schedule this week’s Live Q&A Chat at 11am ET today (Friday). See you there. Come directly to the TWC Chat Room or just email us your question to support@tradingwithcody.com.

Here are a few things to think about this weekend:

If you’re too smart and you think through how the US and global economies work and how fake the concept of money has become over the last few decades, you’ll end up a permabear. Instead, you have to be able to admit that markets and the economy do have a bit of magic in them, and not just because the US usually benefits from most of the market and global economic forces if you have a global view of fiat currencies, corporate earnings, and microeconomics (Microeconomics focuses on supply and demand, and other forces that determine price levels, taking a bottom-up approach. Macroeconomics takes a top-down approach and looks at the economy as a whole, trying to determine its course and nature). I’ll continue to cover this concept, which is a recurring theme in my analysis, in coming weeks.

I suggest we stick with our Revolution Investing approach to stocks but that we maintain some cautiousness and patience while the markets feel euphoric and valuations look outrageous for many stocks.

And I suggest you just make sure you own a little bitcoin and gold. If the internet stops working, bitcoin won’t work. Neither will the dollar though. So what’s the difference anyway? Bitcoin is the currency most likely to replace the dollar as the reserve currency and store of value for the world.

What if someone dug beneath the pyramids? Were the other advanced civilizations in the Egypt [right word] area 10,000 years ago? Or 20,000 years ago? 10,000 Days, the name of my hedge fund the guiding principle in all I do with investing, doesn’t seem so long by those thought standards, eh?

See you at this week’s chat.