OFF TO THE RACES

If only for a day, today we will carelessly ballroom dance on the faces of bears. Today is just a day and means nothing as it pertains to the grand scheme of things. However, it’s always nice to see the speculators out and running, even if it equals penalty to my TZA position.

Some of you are upset over my 2012 predictions, which are decidedly dire. But who takes that sort of thing seriously? It’s a wonderful thing to sip from a mug of decadence, filled with black tea infused with bergamot oils, watching the news change the course of history. I am objectively honest enough with myself to know my limitations in making forecasts. It would be folly for me to trade off such predictions and would most likely yield woe, instead of dough, to my portfolios.

Remember that to build wealth one much keep up a fierce balance sheet, fueled by high income. Investment income is certainly one branch of the money tree and must remain profitable at all times. If you have $500,000 invested in stocks, at the very minimum, you should make 10% per annum, translating into a $50,000 income. I had a lengthly discussion on Twitter last night on this very topic. At the very heart of my question was “how much income do you consider plentiful”?

In my opinion, one needs to clear $70,000 per month in order to be in a position to build real wealth. Some of you are laughing at this idea, since $70,000 per month is either far too little or too much. But it’s a starting point and will allow you to purchase most things in life, sans high luxury islands in the middle east. One thing has become abundantly clear to me, having experienced being with and without money: the more money you make, the higher your expenses go.

At any rate, I have numerous conference calls this morning and feel antsy about getting off to a quick start this year. With 75% long and TZA only in my personal account, I stand to hit the ground running today. Good luck.