Your Legacy and Fortnite
Posted on Sunday, March 3rd, 2019
My youngest of three is 15 year old boy and we talk investing a bit. It helps me to keep up on the latest trends on where teenagers are spending their money and I enjoy spending time with my son. He has been talking to me about the waning interest in the game Fortnite. More interesting to me is that he spoke about the dynamics of some of the current games. He and his friends felt that in certain games like Fortnite it has become “pay to win”. You can’t win just by playing the game and becoming proficient. It is imperative that you spend big to win big. Being a typical teenage boy he doesn’t have a tremendous amount of capital to build his characters so he and his friends prefer to buy “skins”. It is an outer coating or armor that looks cool or presents you in unique way. I could spend hours discussing this but it seems that we have a generation that feels that it is being shut out from opportunity unless they have the capital to spend – and they may be right.
If you have children you need to consider their need for capital. I don’t desire to leave my children a lot of money so they can spend it. I intend to leave my children capital so they can create. Capital is going to be what is needed to succeed in the AI, Robotics world. It is going to become harder and harder to make your wealth through salary and bonuses. It will take ownership. Whoever owns the factory, whoever owns the robots will win the game and that takes capital. Consider this in your investment/retirement/ legacy plan.
The bulls have been holding their shaky ground. Good news seems to be good news but so does bad news. Markets are still overbought and signaling a need to rest but the longer the bulls can keep the market at 2800 the more likely it is we head even higher. Charlie McElligott over at Nomura has been the hot hand of late predicting how the computer driven investor’s will react. Charlie sees the late March period as one that could tip the scales in the bears favor but first we have to get through the March options expiration week which is historically bullish. Late March will see reduced buybacks and computer driven investors could be prompted to sell. A pull back for the market would be very healthy and if the Fed continues to talk soothingly to markets investors will be there to buy the dip in a replay of the QE trade.
I think we aspire less to foresee the future and more to be a great contingency planner… you can respond very fast to what’s happening because you thought through all the possibilities, – Lloyd Blankfein
To learn more about us and Blackthorn Asset Management LLC visit our website at www.BlackthornAsset.com .
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. – Winston Churchill
Disclosure: This blog is informational and is not a recommendation to buy or sell anything. If you are thinking about investing consider the risk. Everyone’s financial situation is different. Consult your financial advisor.