What Racing teaches us about investing

What Racing Teaches us about investing

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Money is Energy, Market Curves, not crashes

 

the Energy Manager - commonly known in racing as the Driver. In finance he is known as the Investment Advisor.
The steering wheel, used by investment advisors to manage your ratio of stocks vs. bonds.
The driver of the red line takes a basic route, the driver of the blue line uses the turn for acceleration, just like the advisor uses market curves.
Imagine to yourself that money is a type of energy, or stored energy.  When you spend it, you are able to buy something, or do something or help someone or go somewhere, etc.  when you have it sitting in an account, that is like a lake on a top of a cliff, the water has potential energy which only gets spent as the water is on its way down the cliff.   Another example is a car, with a tank full of gas but the engine is not running, all potential energy.  I am equating money to speed in this example.  The investment advisor and the driver have the same job, they are both energy managers.  The investment advisor blends stocks, bonds, cash, market trends and stock styles in such a way that he takes advantage of market changes for his clients benefit.  Similarly, the driver blends acceleration, brakes, steering, with the correct line, (the blue Line) through the course.  He takes advantage when the course changes direction and comes out of the curves not slower, but faster than before he got there.  At Blue Line Financial Management, we understand this and what it means for our clients.  Everything we do is designed to get you there faster.

The Blue Line Progression

 

 

This is the Blue Line Progression.  What I want you to notice here is that as we go from one car to the next, to the next, we are moving along the bottom speed line of the chart to the right.  First we are adding power for acceleration, the next car has more power and a lighter engine and more streamlined body.  The third car is the fastest and has a body that is shaped to deal with the opposing forces of parasite drag.  Each car starting from left to right has its own set of limitations and problems.  In addition to their change in shape, they become lighter and more efficient.  What you can see is that their frame is designed to handle air more efficiently.  What you cannot see is every internal part is designed to eliminate wasted energy and produce a faster result.

This is the Blue Line Progression when you apply it to Finance.   Everyone is somewhere along this level, and wherever you are,  we will plan together how to get you to the next level.  We get you to the next level faster.