Editor's Note: The guest commentary below was written by longtime Hedgeye "Power User" Jeff Tyburski, Founder of Your Financial Sherpa. Jeff began his career as an engineer for 13 years, then worked as a senior analyst and portfolio manager for over two decades. He graduated from the University of Rochester where he earned an MBA in finance and is a CFA Charterholder.
The Powell Grind
Did you see the recent post-speech interview with Fed Chair Powell? At one point, the ‘arrogant old Wall’ interviewer (KM’s words) said that all the audience’s questions were ones he had already asked or were too stupid to repeat aloud. So, he asked a puff question instead: “Chairman, what do you do before work?” Chairman Powell answered, I assume trying to act like a badass, “What do I do before work? I work”. Then came the Emperor Has No Clothes moment when he defined his early morning routine as “reading lots of newspapers” (translation: reading lots of narratives). So, the guy that we (market participants) all (sadly) fawn over has no process. If only he said, “I wake at 4:30am and just grind through ROC data”. That would have been so cool. I say, elect KM (or even Ryan Ricci) for Fed Chair!
Congratulations. YOU found a better way. You found Hedgeye to help you protect and compound your hard-earned savings, even during a QUAD 4 year. You found a group of like-minded, process-driven people in Hedgeye Nation. You found a firm and a following of people who respect hard work and accountability, and who seek alfa rather than asking for bailouts. But here is a year-end thought: Will your kids someday join Hedgeye Nation as well?
Thinking of the Next Generation
We all make some year-end resolutions. Maybe we don’t officially call them as such. Maybe we don’t admit them in public. But for just about everyone, the end of a year is a time for an introspective look at what we are doing and asking if we can do things better. Personally, I need to be more patient as an investor. I also need to go bigger when fat pitches present themselves, i.e., at the top end of the Risk Range when there is huge downside to upside and an IVOL discount. Another important personal challenge I face, as 2022 winds down, is that I also realize I need to have more ‘money talks’ with my grown kids (25 and 27 years old).
I need to ensure my kids can answer these four questions:
- Do you understand how money grows? If they do, they will WANT to save and invest.
- Do you know how to stay in position to save? If they do, they will know how to avoid debt (especially college debt) and how to stay employed in a changing world (by embracing change and investing in themselves to keep a job and grow their earnings).
- Do you know how to save? So, once they realize the need and are motivated to WANT to save, and once they are in position to save, do they know how to actually do it? Do they have a formula (personal process and mindset) to actually get it done? My prior guest contributor piece (link) offered thoughts on a formula for success in this regard.
- Do you know how to invest? This is the easy one…join Hedgeye Nation.
Good luck into year-end and prep for the new year. Prepping for the new year is the ultimate ‘Sunday notebook work’. I hope (uggh, not a process word) you also spend some time thinking of how to help your kids achieve what you’ve achieved. To help you with that, and in the spirit of year-end gifting, I offer a FREE eBook for parents to help you help your kids learn about money and broader life skills.
* * *
About Your Sherpa
Your Sherpa teams up with parents to bring financial literacy educational content to kids and young adults. Your Sherpa has a unique approach to teaching financial literacy, offering a roadmap from start to finish (a true personal process with the life skills and mindset to succeed).