Busboys and Taxi Drivers

There have been some extraordinary gains made in the past two years ......the likes of crypto and second tier tech stocks have made some people very rich.....that’s just a fact.

However this has completely distorted what investing is.....and what ‘good’ returns are.

There are greenhorns on this thread that have bagged out Magellan saying they have ‘made more on crypto in a week than Magellan has delivered in the last 3 years’ .....that sort of stuff.

Everyone can’t get rich......it’s just not the way the financial universe works.

There are many old sayings along the lines of when taxi drivers and busboys are giving you stock market tips it’s time to get out. There are a lot of financially illiterate people in the markets now - they’ve seen people get rich and they want a piece of it.

Bitcoin is a classic example. Through 2021 I personally know many people who invested in Bitcoin for the first time - these are people I know are totally clueless (bless them) on financial stuff.....but they’ve been drawn in.

Whether or not you believe in the long term future of Bitcoin - it doesn’t auger well as an investment that the taxi drivers and busboys are buying it.

The whole financial world needs a good shakeout. A good cleansing. Unfortunately thousands of busboys and taxi drivers will be financially devastated- but that’s just how it has to be - that’s how the cycle works.

Whether this happens in the next 6 months or not for another couple of years no-one knows but history shows it will happen and you have to be positioned for it.

Magellan has been positioned for it .....to a fault......it’s been positioned for it for too long so the Bitcoin cowboys have been laughing at it and the busboys and taxi drivers have been abandoning it.

But the big cleansing is coming ......and out the other side of it the comparatively conservative Magellan philosophy on investing will have its day again.

Happy New Year to all and good luck with your positioning for 2022.