Tackle Today: When Risk Becomes Hope 🏳 | Tackle Trading
≈ The biggest obstacle and the only hope. ≈
[…] How do I save well? What should I put my saving in? When thinking about what you should put your saving in, realize that the least risk investment-that you think from volatility is the least risky investment, which is cash-is the worst investment over a period of time and you could judge that by judging the rate of inflation in relationship to the after-tax income you’re going to earn […], so you have to move into assets that are going to do better over a period of time.
— Ray Dalio for Yahoo Finance, February 2019 —
The era of hiding money under the mattress is over. Mattress is for sleeping, not saving.
According to Ray Dalio, on that same interview, the last experience you had is the one that is going to stick in your mind. We can assume, therefore, that it is going to shape your experience from that moment on. His parents went through the Great Depression and stayed away from the stock market. Because of that, they’ve missed out the boom that came after, the same boom that made Warren Buffet a fortune.
If you want to stay out of the madness of the stock market and keep your savings under the mattress, before you do that, take a good look at the Chart of the Day. That is a lesson on how to devalue a currency over time (Coach Matt loves and also hates that chart, by the way).
If you spend your heydays suppressing all kinds of risk, in regards to your savings, you are essentially piling up all implicit risks for when that awkward age comes, the one that you are so old everything hurts.
The opposite is also true. If you take all risk now, without any sound management, you won’t get to your retirement age in one piece.
Risk is, at the same time, our biggest obstacle and our only hope.
Embrace risk.
Chart of the Day: Dollar Purchasing Power (1913–2017)
That is a free lesson on how to destroy a currency over time. The mattress era is over. Embrace risk.
Video of the day: Ray Dalio gives 3 financial recommendations for millennials
Founder, Chairman and Co-Chief Investment Officer of Bridgewater Associates Ray Dalio talks to Julia La Roche in 2018 of Yahoo Finance about the value of savings and investing.
Financial freedom is a journey
The Tackle Today series is brought to you by Tackle Trading.
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
Legal Disclaimer
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.
Originally published at https://tackletrading.com on May 2, 2019.
