The Update

I first started writing on this site at the beginning of 2013, it has been a pleasure, and I’ve learned a lot from all of the very helpful feedback that others have been kind enough to share with me.

Although I have touched upon a variety of topics during my time writing, I have primarily focused on my tax proposal, because it is the most important short-term implementation that can help increase efficiency in our economic system.

This increased efficiency is important for numerous reasons, many of which I have already discussed.  For instance, one key reason I chose this issue is because current asset allocation (e.g. stock picking based upon traditional valuation stemming from corporate fundamentals) is stifled because of distortionary monetary policy by the Federal Reserve.

As I discussed recently, the Fed mentioned the insufficiency of its current policy in achieving its goals of economic growth and job creation, in part, due to inhibiting fiscal policy by the Congress.  My goal would be to relieve the system from these distortions, so that rational behavior can prove worthwhile…as it should be.

An important quote today from an icon in financial writing is one of the sparks behind this particular post:

“Money doesn’t follow “value”, it follows performance. It shouldn’t be that way but it is. If you learn nothing else from me, learn that.”@reformedbroker

I do not disagree with the sentiment, but I probably focus on a different part of the quote than many folks might.  The most important part of the quote to me is “It shouldn’t be that way but it is.”

If it “shouldn’t be that way” (and I agree it shouldn’t), then it doesn’t need to be.  I’m not sure why humans often make things more difficult than they need to be and then convince themselves that it will always have to be that way, but I guess that’s why the field of behavioral economics has become popular this century.

The problem is the lack of knowledge and/or desire by those in control to implement the necessary policies that will allow for everyone to have an opportunity to thrive.  Yes, it is possible!  Economics is not a zero-sum game.

I don’t advocate my tax reform proposal just for the sake of doing so.  As I discussed last week regarding my motivation, I have been fortunate enough to be surrounded by many great folks, and would like to do my part in utilizing the blessings I’ve been given to ensure that they and their families are able to continue to thrive.

In conclusion, just because I am discussing taxes and macroeconomics doesn’t mean I don’t value the importance of financial valuation and microeconomics.  I assure you I would prefer nothing more than to solely focus on old school investing, rather than worrying about whether the “country of the day” is going to default on its sovereign debt, but it’s not my choice.  I’m just prioritizing.

Related Reading: If you learn nothing else…

Related Video: Dallas Federal Reserve Bank President Richard Fisher Interview

2 thoughts on “The Update

  1. Pingback: The Difference Between Winning and Losing | Prober's Playbook

  2. Pingback: The Velocity of Value | Prober's Playbook

Comments are closed.