Shifting priorities

When we started the journey, we were so focused on getting to financial freedom. We put our eyes on the money, and we didn't expect superior results if we behaved normal.

We still don't behave normal, and we still have our eyes on the money.

Yet, there is a shift in our priorities. It is as if we start to settle in, realizing that we have enough and will soon have abundance.

And now, other things come back to our cone of light. 

Friends. But not the friends from before. Instead our friends have grown closer. It's not the ones we want to hang with, like one would hang with a bottle of beer. Instead our friends are those we care about, who don't compare themselves with us, that don't give much for the normal, that inspire us and attract us, that we can spend a night and a day chatting with. 

Family. But not the struggles of the past, but the appreciation of in-laws, the happiness of our nieces and nephews, a good hour spent with an old grandpa or aunt.

Art. Art is developing as a concept for us a little as well. But here we are still searching. We have some enterprises that reach out, and we feel that art wants to reach out. We still don't know everything that hides here.

Travel? Not so much. Even though we realize that with tons of bonus points piling up it's basically free for us to go where ever we want. But we still can't think that much of where that would be. We start to realize that there are other factors that are important to us. We don't want to travel for the same reasons as before, with the emptiness of escaping, for we have nothing to escape from anymore. 

That doesn't mean that we're never going to change the scenery around us. But then travel is more a background, and not actually of much importance.

We start to realize that most important for us might be to help the sun wander over the sky; helping ourselves, helping those we care about, and helping humanity to be a little better. 

Hermes, messenger from the Gods and wanderer of light over the skies.

And in the end, when the sun settles in the west, we know that the most important thing for us might be too be able to say; it was a good day.

Farewell

//antinous&lucilius

Other Asset Classes, and a Fun Sex-life

Where might conventions limit us?

What is there, that we might not see or understand, because we stay limited in our thinking? 

For those with a more open mind there are deeper ideas to explore. 

'Scandalous' but beautiful, reminding us that there is more to this world than just convention
(The Warren Cup, 5-15 AD)

Like the conventional stock market and the stock-picking, there are more, broad and well-acknowledged asset classes, but they are out of the main stream and probably nothing you will hear of if you only attend a conservative congregation.

So of course this is taking things a little over the top. But being gay we sometimes marvel how purple around us seem to be locked in conventional thinking in not only who you could live and have fun with in bed, but also do much more; as if there's an built in value to studying conventional.

When you're not so straight at all, one really needs to consider that what's normal might not be what's good for you.

Who knows, other ways might be something to consider.

And with finance, the real beauty is that we can bet on all at the same time. 

Let's consider some alternatives.

Long term government bonds.

Long term bonds are bonds that promise a fixed payment far off into the future, as far as 25 years from now. 

The price today is the market's valuation of what that future promise is worth today. 

That means that the value of a long term bond today contains the markets consensus of long-term expectations on inflation, monetary policy and interest.

Small changes in those expectations has a large impact on the current price of the bond.

Why do we prefer government bonds? Well, because governments - and we're talking governments from stable countries here - are rather reliable when it comes to paying back their debts. At least, they own the money printing press. 

And hence, the price of bonds are dictated by something very different than stocks.

It's a hedge out of the conventional.

Cash.

Cash? Can that be an asset class? 

Yes. But many are blind to cash as an asset class, because of convention; almost an illusion - that keeps it the asset characteristics of cash out of sight. 

Let's make a thought experiment to see the blind spot.

We usually measure wealth in a currency, that is, as if it was cash. 

And so, when the portfolio drops in value, we have a hard time to see the situation from the other way around.

The drop of value in prices is exactly the same thing as the cash increasing in value.

Stocks falling 50%? That's one perspective. 

Another perspective is that cash just increased 200% in value against stocks. 80% drop in the stock market? Or was it the other way around, and cash just increased 500%?

What about an option that is guaranteed to raise 500% in value if the stock market drops 80%? An asset that is guaranteed by the money printing press. And an asset that will be lovely to go on a shopping spree with when prices are low. 

Don't underestimate the value of cash as an asset. Available cash when there is blood on the streets will build a vast fortune. 

Gold

Why does governments keep gold in their reserves? 

Gold is a value storage through space and time. 

It keeps a piece of the long-term increase of value and production of all humanity, and it's much independent on political whims, short term booms and busts of stocks and unreliable monetary policy. It's even anonymous, if it is melted down.

And we know that we will always keep a reliably exchangeable piece of value with gold, and, when political turmoil and trust in the economy is low, it's more than unlikely that gold will have lost its value - quite the opposite, in most cases - and we will be in for a good deal. 

The states know this. 

When trust is low, gold might still trade.

Bet on everything: The Art of Re-Balancing.

As with all good things, there is balance to be found.

By doing a little bit of all, one also always have what the market wants. 

Are you into Gold? We've got gold aplenty. Cash? A credit crunch and you need a bail out? We got you covered, just hand us some of those stocks in exchange.

Are you crazy about stocks? We've earned a lot while the markets went up and you realized you want some of the fever. We will sell of ours to you.

By knowing more asset classes than the most common kind of love, we're on a sure, steady spiral upwards.

For a better experience: mix it up

And just like life might be better by broadening the perspectives; the financial life might benefit, even find a new stability and security, if one mix in more dimensions.

Farewell,

//lucilius&antinous

More to read:

- What is asset allocation? Some thoughts here: How we dared to start investing

- Our thoughts on portfolios.