Jim is a good friend of mine. He is a baby boomer and he is a money manager. He manages rich people's money and helps them become even richer. From what he tells me, though, there are more wealthy families in the United States that have inherited their fortunes than those that have created fortunes from scratch. He would know -- in order to become one of his clients you have to have a net value of at least $1 million. It's a rather odd thing to consider the bulk of the money making its ways through the market is so-called "old" money.
So, the argument I like to bring up is: if it's old money that drives the market, where does the average working Joe fit into the picture? What about the middle class? When does the middle class get to ante up to the investment table? During the 1990s we saw more day traders buying and selling for the short term. That trend died off in the early 2000s and left many would-be millionaires coming up short.
Does someone have to be rich in the first place to become richer? What does it take to cross the financial trenches and break into upper percentiles? Knowing that the financially fortunate rarely emerge from a vacuum is essential, especially when we bring the mighty corporations into the picture. All successful corporations, as reviled as they are, were started by venture capitalists taking that proverbial chance. This means that most corporations were started in an effort to create new goods and services resulting from the investments of middle to upper class businessmen and investors.
Bill Gates didn't just open a window and let money fly in. He had a great idea and a solid business model. Moreover, he had the necessary seed money to start his own business. Microsoft started with pennies in the bank and has become a technological and finance force around the world. This did not necessarily need "old" money to get off the ground -- it just need enough money to start.
The rich become richer during economic downturns and depressions. How is this? Recessions and depressions have a tendency to destroy competition, therefore consolidating the wealth-base of the super rich. Competition is not in the best interests of the super-rich. Consequently, it is the corporate structure -- justifiably attacked for its lack of transparency -- that allows new wealth to be created and more people to participate in that wealth. Most corporations are started by entrepreneurs -- and that entrepreneurial spirit is what has made the middle class and the nouveau riche possible. - 23309
So, the argument I like to bring up is: if it's old money that drives the market, where does the average working Joe fit into the picture? What about the middle class? When does the middle class get to ante up to the investment table? During the 1990s we saw more day traders buying and selling for the short term. That trend died off in the early 2000s and left many would-be millionaires coming up short.
Does someone have to be rich in the first place to become richer? What does it take to cross the financial trenches and break into upper percentiles? Knowing that the financially fortunate rarely emerge from a vacuum is essential, especially when we bring the mighty corporations into the picture. All successful corporations, as reviled as they are, were started by venture capitalists taking that proverbial chance. This means that most corporations were started in an effort to create new goods and services resulting from the investments of middle to upper class businessmen and investors.
Bill Gates didn't just open a window and let money fly in. He had a great idea and a solid business model. Moreover, he had the necessary seed money to start his own business. Microsoft started with pennies in the bank and has become a technological and finance force around the world. This did not necessarily need "old" money to get off the ground -- it just need enough money to start.
The rich become richer during economic downturns and depressions. How is this? Recessions and depressions have a tendency to destroy competition, therefore consolidating the wealth-base of the super rich. Competition is not in the best interests of the super-rich. Consequently, it is the corporate structure -- justifiably attacked for its lack of transparency -- that allows new wealth to be created and more people to participate in that wealth. Most corporations are started by entrepreneurs -- and that entrepreneurial spirit is what has made the middle class and the nouveau riche possible. - 23309
About the Author:
Joining the Ten Percent Club make take a fair amount of smart, savvy day trading. Don't trade stocks online without a great team of people behind you.
