Posts Tagged ‘financial forecasting’

EZ Gains (and a “conspiracy theory” about the burning of fuels leading to warming)

November 9, 2010
EZ Gains… and a conspiracy theory about burning fuels leading to warming

 

EZ GAINS

Because some profits are easier than others.

Aren’t some people older than others? Aren’t some people smarter than others? Aren’t some people braver than others?

How about this: aren’t some companies older than others? Well, even if a company may not be very old, it can still work very well with smart people, especially if those people are brave, too.

Back in 2003, when many old companies were ignoring the risks of the global lending market (including the subprime mortgage market) as well as ignoring the geological realities of things like oil and natural gas and coal, some people were smart enough to look closely at the behavior of investors worldwide… plus brave enough to admit the obvious. One of the most obvious things is that fossil fuels are finite resources.

Another obvious thing was that if humans burn more and more fuel for decade after decade, then eventually there will be much less of those fuels. For economies dependent on oil, that dependency could get very expensive- and not just in terms of dollars, but also in terms of social stability, human welfare, quality of life, and even national security.

Another obvious thing is that all that burning of fossil fuels might heat things up a bit, right? Still, lots of people choose to argue about things like the possible causes of global warming, with some activists maybe protesting against sunlight and others protesting against empty oil wells. ;)

Smarter people might actually predict in advance that burning huge amounts of fuel worldwide might result in a measurable rise in heat. However, it can take a lot of bravery to stop arguing about who to blame and admit that billions of people are involved in the global economy.

By the way, the global economy is just a phrase that actually means the actions of a whole bunch of humans. The global economy is not something that happens to us. It is something that we do.

Anyway, in early 2003, I published an article about the future of the global lending market, which just means the lending and borrowing of a whole bunch of people. I specified in particular the increasing risk in the real estate market of countries like the US, which had become so dependent on borrowing. I also forecast a continuing surge in global prices of commodities like oil and gold, contrasting that with the diminishing opportunity for gains in the US stock market.

In 2004, I published “The Real US Deficit: Oil.” In 2005, I published “Worth it’s weight in… Oil,” noting the practical priority of oil over all other global markets, as evidenced by the price increase of over 1200% from 1999 to 2008, while other commodities of lesser current importance, such as gold, went up “only” by a few hundred percent. So I took the old phrase “worth its weight in gold” and replaced gold with the commodity that everyone who has ever waited in line 5 minutes to get gas knows is far more important than gold: oil. Most people also know that oil is the source not only of gasoline and kerosine and so forth, but also plastic and many pharmaceuticals and pesticides.

As the years went by, myself and others continued publishing articles and giving lectures about the easily predictable future of things like oil prices, the US real estate market, the US stock market, and even things like the fact that the burning of fuels can result in the melting of ice, as in the case of oceans rising faster and faster. In addition to lots of publications and lectures, I recorded a video in 2006 (and uploaded it to the internet) which detailed the sequence of events that would predictably result in the collapsing of major financial institutions like banks, brokerages, and insurance companies. In 2008, that precise sequence of events was frequently referenced in the mainstream media as “surprising.” Major banks in the US, Europe, and elsewhere were facing similar troubles to those faced in similar circumstances, such as in Japan in the 1990s.

Of course, in Japan in the 1980s, many smart forecasters had been brave enough to publicly forecast what developed in the following years, too. As often happens with unpopular forecasts, when those precise developments which had been forecast did arise in the 1990s, the mainstream media in Japan called those developments “surprises.” Soon, the public poured their hopes in to promising reforms and then desperate rescue packages and then eventually a string of politicians with shorter and shorter periods between receiving public confidence at first and then later being blamed as incompetent or even as traitors.

Some things are easily predictable. For instance, burning fuel raises the temperature.

Also, smart people recognize what is obvious. But perhaps only smart people that are also brave would be willing to accept responsibility for adapting to what is obvious. Others may be surprised by the surge of heat in the summertime or in the direct sunlight at noon, and then may look for someone to blame for the surprising heat, such as certain politicians. In fact, that may just be the first stage of adapting. Making personal adjustments may come eventually for them, such as embracing the most obvious opportunities to make easy gains.

So, aren’t some people smarter than others? Further, aren’t some people braver than others? Well, aren’t some results more valuable to you than others?

weather report financial

February 2, 2010

Storm ahead at sundown: “Are you ready, honey?”
Do you ever check the weather report, like while making plans to travel and before beginning a journey? If playing a card game, would you look at your cards before you take your turn or place your bet? How about this: when you plan your investments, do you first check for reliable analysis of what is already emerging (sometimes called “forecasting,” though most if not all forecasting is really just noticing patterns that are already developing before most other people do)?

By the way, if you do not already know of a source for reliable early notice of developing patterns in investment markets, reading this is your next step into benefiting from this unprecedented opportunity. This is being presented by one who simply notices what is already happening- but also knows from experience what to look for and where to find it, plus how to identify emerging patterms clearly and then benefit enormously from them. By the time that most people find out from “the news” that something has already been happening for a while, then the biggest opportunities may already have ended.
Of course, even if a group of people are all making similar plans, like to go on similar trips for a certain holiday, not everyone checks the weather report at the same time. Some people do not even check the weather report before making their plans. They may just presume that if there is any unusual weather ahead, someone else will probably tell them in advance- or at least hopefully- like maybe a politician?

A few may simply learn how the weather has been changing only after their plans are underway and the weather has already changed dramatically, sometimes surprising them- perhaps very unpleasantly. Can you imagine that?
Of course, not everyone checks financial information at the same time either! Some people do not even research new and emerging financial developments in advance of making their financial plans. Some people always rely on the projections of particular other people- even after the porjections of those people have been established as unreliable.

Would you keep trusting a weather forecaster who does not ever forecast the most unusual developments, but only tells you old news or common knowledge like that summers are hotter than winters and nights are cooler than days? Would you keep investing in the analysis of forecasters who have clearly established that they don’t tell you in advance when a major storm is coming? Isn’t knowing about those unusual developments early the point of checking the weather report?

How much do you value a weather report that consistently tells you in advance about unusual developments that could alter your existing plans? Don’t you value knowing early when to cancel plans that require clear weather- as well as when to reschedule everything to take advantage of an unusually mild day? Plus, don’t you already know what it’s like to forget to check the weather report and then get surprised by something that you could have known about in advance, but simply did not check in advance, learning the immense value to you and those who rely on your plans of checking a reliable weather report consistenty?

You may not even know that there are analysts who have been noticing major financial developments earlier than most and who have been reporting consistently on those early observations, promoting informed planning of finances and investments- informed consistently by those early observations. Would you be surprised if the results of  informed planning are clearly distinct from the results of planning that is not well informed- the results of people who have been declining the opportunity to plan wisely?

By the way, now it’s sundown and there is a storm ahead- actually a much bigger storm than you have ever experienced. This statement is based on the same methods of analysis that clearly identified the early stages of and publicly reported in advance on the global credit crisis, the housing market peaking, the sharp rise in fuel prices, then the sequential collapse in the prices of commodities, stocks, and the most unstable real estate markets. When would you value knowing what that analysis has already noticed already happening next?

Now, some people value the enormous gains available by knowing in advance what is ahead. Apparently, though, most people have not- just look at the results they have invested in producing in the last few yearsL unpleasant surprie after unpleasant surprise.

Storm ahead at sundown: “Are you ready, honey?”


WEATHER REPORT FINANCIAL
(888) see it 1st


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