Our Tongue in Cheek Guide to the Latest Investment Concepts
By 2X Wealth Group
Out with the old and in with the new… Just when you thought you knew the lingo, the world has changed. We equip you with the latest business and market concepts for your holiday parties.
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Modern Monetary Theory - A short lived economic concept that revolved around spending money that you didn’t have without economic consequences.
The Metaverse - Ground zero for what was wrong with this market. No longer cool to spend lots of money on make believe.
3D Glasses - Should be repurposed to use when looking at your portfolio.
NFT - Non fungible token. Really Not (a) F.....ing Thing.
SBF (Sam Bankman-Fried) - The millennial Bernie Madoff.
FTX (SBF’s company)– A distant cousin of Lehman brothers. The failure is not looking like a systemic risk, but it did hurt many sophisticated investors.
Crypto – We might say tulips? Tulips are still around, but what will crypto be?
Buy Now Pay Later – Companies wished they switched to Buy Now Pay Now.
FOMO - Fear Of Missing Out has become Fear Of Money (Running) Out.
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Happy New Year from both of us at 2X Wealth! We hope your holidays are filled with friends, family, joy and laughter.
We also wanted to take this opportunity to say thank you. Thank you to our clients for giving us the trust and privilege of advising and investing for you. Thank you to our subscribers for reading our blogs and listening to our podcasts, giving us feedback and ideas, and for joining us in our mission to help people understand financial concepts without too much pain. We promise to deliver more blogs and podcasts (Nest Egg!) as we continue to grow the 2X Wealth community.
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And for you luddites, we provide you with a review of last year’s concepts!
AR/VR (Augmented Reality/ Virtual Reality)
Augmented Reality - smart glasses, a data overlay of additional information on top of a screen.
Virtual Reality - a virtual reality headset takes over your vision and gives you the impression that you are somewhere else. Expect investment managers to use these concepts liberally when your portfolio goes down.
Buy Now Pay Later - The installment plan which became all the rage when the company Affirm started taking business from folks that actually expected you to pay eventually.
Core CPI - The Consumer Price Index excluding the two things that really matter, food and energy.
Cryptocurrency – A volatile asset that doesn’t really act like a currency. If you use crypto to buy something, what you actually pay might be a lot different than what you thought it cost the minute before.
ESG Investing - Environmental, social, and governance standards used by socially conscious investors to screen investments. Like driving a Tesla, it makes you feel better, but the Tesla plugs into a grid often supplied by oil and gas.
Metaverse - A way to sell you more stuff in a 3D technology world that incorporates virtual reality in a digital universe. Think virtual conferences, concerts, and trips. Made popular by Mark Zuckerberg to make you forget he invaded your privacy with Facebook.
Name Change not due to marriage - how old fashioned! Used by companies when their stocks aren’t performing. Hence, Facebook became Meta and Square became Block.
NFTs - Non-fungible tokens. A way of making something with a million copies and little value unique, so that it becomes very expensive.
PCE - Personal Consumption Expenditures. The Fed’s preferred inflation indicator. When the CPI (Consumer Price Index) is too hot, good to try an “alt” index.
Rule of 40 - A metric suggesting a software company’s revenue growth and EBITDA margin should add up to 40% or more. Borrowed from private equity to justify valuations of companies in the public markets that sell a lot of stuff, but don’t make any money.
Stablecoin - Cryptocurrencies that peg their market value to an external reference such as the dollar. An attempt to make crypto have measurable value and be more easily traded to buy stuff.
Transitory for Longer – The Federal Reserve’s excuse for why inflation hasn’t gone away.
WFH – Not a dirty word. The acronym for Work From Home stocks that became necessary and extremely valuable during COVID lockdowns.
