In this episode we discuss the entry fees around investing in different markets, specifically the stock market and futures market.
Entry Fees:
1) Cost to play the game - we usually see this as the upfront cost - the cost of entry associated with buying a stock, buying a franchise or investing in a futures index.
2) Cost to play the game well - we think of these costs as hidden costs, long term costs and the cost of draw downs or losses.
3) Understanding the market cycles - every market has a rhythm as the people investing in them have rhythms. Investors are responsible for the majority of the cycles as cycles are created by human nature. Macro cycles or eras revolve around 100 year snapshots of the market. 25 year rhythms or "turnings" respond to more generational cues (The Fourth Turning, Strauss and Howe)
Stephen Covey - "Start with the end in mind"
John Fedro - mobilehomeinvesting.net
K-cycles - Russian economist, Kondratiev or Kondratieff that first developed language around the long term cycles of markets.
Garrett Gunderson - "Risk is in the investor"