Wealth-Building Made Simple

Finance 101: The nuts and bolts of how our economic system is financed


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Summary notes:

The financial system is based on faith (credit) in assets, such as treasury bills, gold, stocks, real estate, etc. . Wealthy individuals and institutions rely on those assets on their balance sheets for getting favorable terms on money they borrow to invest in their businesses.

Treasury bills are the foundation of the dollar-based banking system. Banks can lend out more than they have, creating credit. Hedge fund managers use futures contracts to control multiples of their investment capital. Insurance policies can be borrowed against to invest in higher return assets. Stocks can also be borrowed against, but are riskier. Crypto and bitcoin can be borrowed against, but it's important to manage risk responsibly.  Leveraging assets to make more money is a common practice in banking and finance. 

 

Timestamps



0:01:44 Exploring the Financial System: Understanding the Capital Structure and the Role of Faith in Money

0:05:57 Exploring Leverage Strategies in the Financial Markets

0:07:53 Exploring Leverage Strategies for Financial Assets

0:12:52 Removing Fear and Greed: Understanding the Risks of Leverage Investing

0:15:17 The Dangers of Leveraging Finance: A Discussion on Greed and Emotional Intelligence"

0:17:11 Understanding Leverage and Building Emotional Intelligence in Investing

 

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https://stonehillwealthmanagement.com/

Phillip Washington, Jr. is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

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Wealth-Building Made SimpleBy Phillip Washington Jr.

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