Aug 10, 2022
Summary:
Why are the next five years going to be different from the last
five years on Wall Street? During the last five years, it was easy
to make money, but Simon Ree thinks that the next five years
(2022-2027) are going to be a lot different. According to Simon,
the Fed has two options—which will either result in the stunting of
economic growth or a repeat of the 1970s. His advice to people is
to maintain a growth mindset, determining how and when to expose
money to risk. Use the link below to check out Simon’s book on
options trading, and tune in to this episode to hear some amazing
market advice from Simon.
Highlights:
-In the previous 15 years, stocks have had a massive tailwind
-The balance sheet expansion has gone in reverse
-We’re experiencing inflation for the first time in four
decades
-In the next five years, the Fed will either stick to their
guns—having dramatic effects on economic growth—or rate hikes will
stop and the 1970s conditions will come back to life
-Stocks are down, bonds are down, cryptos are down, but cash isn’t
down
-Simon encourages people to approach things with a growth mindset:
how and when do I expose my money to risk?
-Simon’s preferred method is to use technical analysis to pick out
the best assets
-Monthly compounding is a better strategy for some, achieved
through short term trading
-There is a shortage of residential housing, and this market is
also going to be affected by rates
-The residential real estate market will not necessarily crash, but
prices could come down 10%-20%
-If the fed maintains tightening, this could filter into
unemployment
-His book on options trading is to help people become successful,
independent traders
-He wrote the book to engage readers and simplify concepts in
options trading
-In a bear market, you can’t ignore the counter-trend moves
-We’re in a structural down-trend, but don’t fall in love with bear
market rallies and think that the worst is over
Useful Links:
Financial Survival Network
Tao of Trading