Why isn’t trading your capital your full-time job?

Introduction

If the naysayers all over YouTube are correct, the economy is likely in for a correction as labor markets adjust by shedding extra workers who, according to Peter Schiff, CEO and Chief Global Strategist of Euro Pacific Capital, Inc., were probably kept on by employers because of the cost of hiring workers in the face of a recession.  If employees are let go this time, will there be a return to work for them?  And given inflation expectations forecasted into 2023, how will laid off workers make up for lost income even if they are called back to work?

The 2022 and 2023 inflation outlook are cloudy

Last week the International Monetary Fund painted a less than bright picture of inflation for 2022 and 2023.  The IMF reads the markets as expecting inflation running above central bank targets over the next several years.  Major central banks including the Federal Reserve System, the Bank of England, and the European Central Bank expect inflation around three percent over the next few years, according to the IMF.  The Federal Reserve, Bank of England, and the European Central Bank have pegged two percent as the inflation rate target.

The IMF fears that if inflation becomes entrenched, central banks may have to incorporate rate tightening to mitigate its effects.  There is no sugarcoating, in my opinion, the adverse impact on households spawned by increasing interest rates and increasing levels of consumer household prices.

Add the expected decisions by employers to meet increased borrowing costs by furloughing employees and prospects for labor dims.

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What are the options out there?

For the five or six people out there who have read any of my posts, you know that while I have slept at a couple Holiday Inns (and come think of it, my Dad worked at one), I won’t pretend to be a career specialist.  However, when I look at history, I can’t help but appreciate the role trade has played in the spread of western civilization.  Exchange of value for value lies at the heart of our economy and I believe that any option for moving into a new business or a new career should take that view into heart.

Okay. That was a little airy, airy, so bring it down to earth a bit.  For those blessed with disposable capital, trading some of that capital may be a good idea.  The world of commerce and trade is fascinating, I think.  Filling the need for a good or service and profiting from the spread is as organic and down to earth as it gets. To me, that is reality. That’s life.

While I don’t give legal advice (without a retainer and an agreement), I would recommend checking out a proprietary trading firm, vetting it head to toe, and making sure that you and it have met any regulatory requirements.  I write about the legal, regulatory, and compliance issues in this area so drop by and read my blog.

We are in scary, challenging, and ironically liberating times.  Why not have your next career move be all three?

Alton Drew

1 August 2022

Disclaimer: This blog post should not be construed as legal advice or an agreement to provide legal or political analysis.  To set up a consultation, contact us at altondrew@altondrew.com.

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