Welcome to back Talk Money Weekly! To get your mind moving on the topic of money every week, I curate and share trending conversations around money, business, current events, and pop culture from Twitter, my favorite podcasts, and other platforms.
Happy New Year! Forgive me for not sending this out yesterday. Given the events in Washington, DC, I felt better to wait. Hope everyone is safe.
Season 3 of the podcast airs next week on January 13. Hear our Season 3 Trailer here. We also made it to #9 on Spotify's Trending Podcasts!
📈 Markets & Business
Bitcoin is up 100% in the Last Month, But Will It Last?
Bitcoin hit $40,000 today. That's 2X from where it was 1 month ago. It's also 2X from where it was at the highs of 2017. You have to look at things with a longterm lens. The issue is that people get excited and buy into hype. They end up buying at highs. When it drops, they freak out and sell it. Then they watch it rally again. They buy it again at NEW highs. The cycle continues. Buy things because you understand them and believe in their growth, not because everyone else is doing it.
As Bitcoin's narrative of being "digital gold" and a potential store of value grows, it will have these ups and downs. And even though we see new highs, it doesn't mean it can't pull back 50%, and then rally 200%. When you look at it over the long run, the trajectory is up, but the journey will be bumpy.
Prepare yourself for volatility. Think long term if you're invested in it. IF you're interested in learning more about Bitcoin and how to invest, check out our Talk Money Guide on Bitcoin. Use the code "newsletter" for a 20% discount.
The Stock Market Was Up, While The Capitol Was Under Attack
Yesterday's actions by domestic terrorists on the Capitol was a shock to all of us. It was an absolute embarrassment on many levels and sickening. One would think that such chaos would cause the markets to sell-off. They did not. In fact, the markets were up.
The stock market doesn't give a shit about the economy, job loss, and clearly an attack on the nation's capital. I'm not really sure what to make of it. The only thing is that at the end of the day, there is a certainty. The certainty that Joe Biden is going to be President and Trump lost. Congress made it official. The market likes certainty. It likes knowing where things are going. A bizarre and sad day.
Buy What You Understand
I really like this take. If you're going to buy stocks yourself, buy what you understand. What you understand is what you use. Over ten years ago a friend asked me for stock advice. A few drink deep, I responded with "buy what you understand. Do you wear Nike? Buy Nike. Do you use an iPhone? Buy Apple."
Years later I ran into him and he said he used that exact strategy and was able to pay off his student loans. What's the lesson? Remember to use the same advice you give other people! And, don't buy the stuff you don't understand.
You Don’t Need VC Money to be Successful
There's a cultural issue in the US that you need VC money to be successful. It couldn't be further from the truth. Venture capital money is only meant for companies that have venture capital returns. This means they have massive exit potential- Airbnb, Amazon, Uber etc. VCs invest in many companies in the hopes one or two will have a 50-100X return, while the others may go to zero.
For everyone else, you have to think about what makes sense for you. A VC will give you money, but they want you to spend that money on growth, and that can crush your business. I really love this thread about Morning Brew and encourage you to read it.
They never took VC money. They became a profitable company. They had no choice but to be scrappy and optimize for revenue and profits. They were able to sell their company, and because they still retained so much ownership, it was very financially beneficial for them.
ER Doctors Are Being Let Go at the Height of the Pandemic
I have a very close friend who works as an ER doctor. He told me that during the pandemic, they were working nonstop. All his colleagues were getting COVID, and some of them unfortunately passed away. They were getting residents to work as well and even medical students. This was all while his bosses were sitting on top, away from danger, collecting their checks.
After COVID died down in the summer, a lot of these doctors were let go. With a lack of revenue from surgeries and no patients in the ER, their jobs were cut because hospital budgets couldn't cover them. Now, COVID cases are worse than ever, doctors are needed, but some are still out of work.
I did a podcast on this subject this past summer. Listen to "The Good Doctors" to learn more about this subject. It's absolutely ridiculous that our healthcare workers are out of work and not being compensated properly.
The Ultimate Troll VS The Ultimate Marketer
+1 for the best response ever.
That's all for this week!
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