Your Loss is Their Gain

I don’t care what profession you are in, its a business, bottom line.  That is what we have become. It’s not to say that making money has not been a part of all ventures since well, forever.  Even an orphanage must make money to house and feed the kids. But our 21st-century business environment is altogether different.  More akin to mining. A process of extracting absolutely every single usable particle, or in this case dollar that can be grasped. Business was once was like drilling for oil, but now we have entered the age of Fracking.  A destructive form of extraction with a disregard for humanity.

“Dow Plummets 800 points.”  The headline is shocking to the average person, but what does it really mean?  There are three separate audiences for this headline. First are the working poor, who have no discretionary income to invest.  They are not in the market, and the headline mainly confirms what they already think. “Things are fucked up, what’s new.” Second, the lower, the middle and the upper middle-class.  They are working hard, burning the midnight oil to do everything right. They do their best to save and invest. The invest in their education. They “know”, that hard work, and doing what at least they perceive other considerably more wealthy people doing will lead them and their family to the promised land.  A debt free, illness free, traveling circus of a retirement, filled with luxury and attractive young help. You know like what you see in Fidelity and other retirement investment commercials. When they see this headline, their heart sinks into the soles of their moderately expensive dress shoes. Those are real dollars that went missing out of their portfolio. 3%, fuck!  When that quarterly statement arrives, it matters to them. That was Preston’s college fund? They will still eat steak, but you know, it hurts. They feel victimized because they are following the rules. What gives?

Now for a dose of the truth. A view of what lies behind the curtain.  The third audience that reads this headline is totally indifferent.  If you turn on CNN or Fox the headlines are apocalyptic? What is the average person to think?  What you are supposed to think, is that everyone is hurting. That, however, is simply not the case.  Most people misinterpret the indifference of the wealthy through hard times as security. In reality, they make the most money in times of others insecurity.  Without getting technical, it must be understood that volatility is good for “savvy” investors. It is irrelevant to them which way the market moves because they can make a killing in both directions.  Counterintuitive as it may seem the worst thing for these types of investors is for the market to move slowly, or in one direction. If the market for TV’s plummeted today and you could buy 60” Flatscreens for $10, all while knowing the market would return in the very near future.  Imagine the opportunity that situation would represent. Especially if you are the only one with any money. The market is no different. An 800 point sell off only represents a blue light special sale to those savvy and institutional investors, and guess who they are? They are not of the working class, or even of the do-gooder upper middle class.  They are your overlords, and no profit is sweeter than the profit from those that are suffering.

-A. Carroll

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