Money Wisdom

This is a list of lessons I’ve learned over time from books, confirmed by my experiences.

Macro

• When interest rates change, interest-sensitive assets (Real Estate, Small Cap, banks)get repriced accordingly.
• When the U.S. dollar is expensive, buy tech. (Gonzalez’s How to Make Money with Global Macro)
• When rates are cut, Small Cap grows the fastest.
• The U.S. holds the ultimate economic leverage over any other country.
• Deflation is not a concern for America. (Volcker’s Keeping At It, Kurzweil’s The Singularity is Near)
• Debt leads to growth in GDP (Vague’s The Paradox of Debt)
• “Since land, building, and factories produce income, so money must yield interest.” (Chancellor’s The Price of Time)
• The monetary policy can dictate whether you look smart or stupid afterward.

Investing

• Sell spinoffs immediately; they often shed less profitable segments. (e.g. Reality Income, O)
• For taxable accounts, prioritize high-growth stocks with fewer dividends. Modify infrequently. Tax-advantaged accounts allow frequent changes.
• Exercise caution when P/E > 40. (Peter Lynch’s Beat the Street)
• Tech grows exponentially like lily pads. (Kurzweil’s The Singularity is Near. Patterson’s Chaos King)
• Be aware of things that grow exponentially in nature, like…