Things that keep Kae up at night...
"…taxes, inflation, and advancing technology."
I recently recovered from the flu and was comforted by several investor friends who texted me to get well. As always, thanks to all who wished me to get well! I'm definitely feeling better now. :)
As some of you know, I'm quite ambitious and geeky when it comes to investing. Now that my health is 100% again, it's time for me to revert back to my mean and think about some of my top priorities in life. I thought it would be fun to share with everyone some of the most provocative economic charts that serves as a fundamental driver of my beliefs, value, and efforts in this world.
First off, below is the text message response from me to some investor friends. Don't take this too seriously as I like to joke a lot about the realities of this world, haha!
Let's dive deeper into some charts that I like to hold in my mind as I maneuver this dynamic global economy via my various investment positions.
Federal Government Current Tax Receipts - Hmmm, it seems that over time the governments makes more and more money. This powerful trendline goes all the way back to the 1950s and I would assume it's safe to say that it'll only continue this path. Remember, the trend is your friend and also the FED in some cases.
Case Shiller U.S. National Home Price Index - Hmmm, real estate prices did not slow down during the global pandemic...it actually accelerated higher and the acceleration looks quite similar to the 2008 real estate derivative crisis.
Purchasing Power of the Consumer Dollar - Hmmm, this declining trendline of the dollar's purchasing power dates back to as far as the 1920s.... I'm also pretty sure it's safe to assume that this direction will continue. This a great chart that expresses Ray Dalio's recent comment saying, "cash is trash" (but only until a major global volatility event occurs).
SP500 Since 1998 - Hmmm, equity prices are a lot higher now and looking way more parabolic than 2001 & 2008...In a world where the trend is your friend along with the FEDs, we can say this is a politically bullish trend and can go much higher (until a major regime shift or lost of artificial market control).
Moore's Law - Hmmm, most of the technologies that the human race has ever seen came in the last several decades... This technology trend chart speaks "very" loudly and really expresses the exciting times we're in! I can only imagine where the human race goes next from here...
As always, love what you do and help others.