The Worth of Anything

With baseball free agent signings over the last several months, I constantly hear the complaints that a professional athlete is not worth millions of dollars. In terms of a social justice those complaints are perfectly valid.  Professional athletes are not finding a cure for cancer nor are they solving any of the world’s problems, but in terms of economics, they are worth every penny.

For those same complainers they insist on the injustice of someone making more than the President of the USA for chasing a ball around a field when they probably do not have the intelligence to pound salt.  It is at this point that my counter argument shoots them down.  I simply ask them one question.  If you had the God given talent to throw a baseball 100 mph and some owner offered you $20 million a year to pitch, what would you do?  If you decline the offer because it is an injustice, then you are ether a liar or a saint.  If it was offered to me, I couldn’t sign the contract fast enough and if I didn’t have a pen, I would cut my finger and sign it in blood. 

The real reason the complainers are against huge player salaries is jealousy.  They work hard at their job and are struggling to meet ends meet while a 20 something has just won the lottery for doing something with a ball.  The bottom line is that professional sports are a multi billion-dollar industry so the players are rightfully entitled to their share which is in the millions. Nonetheless, it just does not seem fair.

Economics is a cruel science.  Life is not fair, get over it, because the worth of anything, the athlete, your house, your car, and yes, even your life, are determined by two things and two things only.  They are what the seller is willing to sell it for and what the buyer is prepared to pay, end of story.  It may not be worth it to you, but for two others, their uncoerced willingness to make the financial transaction at a given price determined the worth at that moment in time.

The stock market is no different.  When a buyer and seller agree on a price of a stock, the trade is made and that is the present worth.  When there are more buyers that sellers for a stock at a given price, the stock price will rise.  Conversely when there are more sellers than buyers, the price will fall.

Swing traders look for chart patterns that historically shows a stock price will move in a given direction and a nominal profit can be made quickly.  At twopercentgoal.com, you can sign up to receive daily emails showing stocks poised for a two percent gain within a week.  This can help you double your portfolio in a year.  The emails are free for the first 30 days and then $99/mo (USD) thereafter.  That is what it is worth to me as a seller.  As a buyer, if you can profit more than $99/mo, there is value in this, and it is more than worth it for you too. 

Cheers,

Al

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