Oct. 27 Settles
Plus Value Lesson
With the Techs reporting this week, it seems some took today to push a few chips in as to their outperformance and they were indeed rewarded as the Nasdaq was the only index higher on the day! As far as bonds, they too were bid on the heels of another record breaking size 2Y auction of a chunky set of $54Bn coming in at a yield of 0.151%. The curve flattened a bit as the US Govt 5s30s spread was tighter by 1.5bp. FX was slightly stronger but mainly a mixed bag and both Energy and Metals complexes higher:
We wanted to end this note touching upon a little life lesson from Prof. Jordan Peterson upon value. Specifically in relationship to wasting time and not being able to accurately value ones time. In this case we want to present the fact that our writing, our knowledge, our experiences in the trading and investment world are being conveyed to our readers in a way that we think will help them not only learn a few things, but even more importantly teach them things in a way where the reader actually contemplates it deeper and ends up learning a little bit more about themselves and their tendencies.
Knowing thyself is the most assured way of not making mistakes and rather trusting what it is you know and even more importantly what you know about yourself.
So with that said, we have had a few subs tell us, our letter is too cheap and also that our letter isn’t worth $10 a month. So ok fine, we get it, varying opinions.
So let’s quantify this out shall we. Let’s assume that our time is worth on average in terms of labor per hour $50. (Seems cheap I know) So if we utilize this rate and we break it down vs the cost of this newsletter which is $10 a month and further assume that our research, our contemplation and then our conveyance into a cohesive and understandable missive takes roughly, 1 hour a day (not likely more like 3) anyway so that 1 hr. of our time translates into an economic value of $50 per day to our reader.
So assuming we write 21 days per month 1 time a day (which is generally more than 1 time per day) we should multiply the $50 x 21 and we get $1,050. So what does this translate into? How do we look at our readers economic value?
Well we can posit quantitatively that we are delivering $1050 worth of knowledge, data, experience and know how for $10 a month, which translates into an economic value return of 105x.
Yea this is the MBA in us talking we get it, but in this world, especially today, many misunderstand value and its our job to hopefully shed better light. We would also like to comment on the Founders Subscription and access to the GFBP Positions Tracker.
The pay up value on the forefront seems costly, but if you are implementing the program on your own and your are generally tracking it, well the cost we feel at $250 a month is a commission charge on a trade, hell back in the day that was one trade! We used to pay an 1/8 on $10m worth of US Treasuries each and every time and we would trade hundreds of millions of these things, that’s $312.50 every single time, every in and out, unless it was passive and we were lucky someone took us out for free…
Anyway, we hope you get where we are coming from. We hope you understand what we are saying and we hope this value lesson and thanks to Jordan Peterson, who has been so instrumental, much like Alan Watts for giving us a better understanding upon our life and our purpose and how to value, what to value, who to value and tie it all together. Cheers!
Please share our work and subscribe if you haven’t already, we have a free tier, a 2 latte a month style and a Founders which has access to our Global Futures Benchmark Program positions tracker daily. We hope you enjoy our work and we hope you continue to support us.
-Magnelibra Econemotions
DISCLAIMER: For educational purposes only. This is not a solicitation to buy or sell commodity futures or options on neither commodity futures. The risk of trading securities, futures and options can be substantial and is not for everyone. Such investments may not be appropriate for the recipient. The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. Nothing contained in this message may be construed as an express or an implied promise, guarantee or implication by, of, or from the author Michael Agne owner of Magnelibra Capital Advisors. All rights are reserved. We will never claim that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Although care has been taken to assure the accuracy, completeness and reliability of the information contained herein, we make no warranty, express or implied, or assume any legal liability or responsibility for the accuracy, completeness, reliability or usefulness of any information, product, service or process disclosed.