Posts Tagged ‘Investor’

secrets of humble partnering- the key to consistent, easy investment gains

March 4, 2012

a simple, bold assertion: partnering with markets is the key to consistent, easy investment gains

Imagine two groups of people: one group keeps investing in an old, familiar industry and the other group invests in a new technology. Will their investment results be exactly the same or somewhat different?

For instance, will bicycle investors perform the same a automobile industry investors? Will telegraph investors perform the same as those who invest in telephone technology or even in the radio industry?

Recall the children’s story of “The Three Little Pigs.” You were probably tucked in a warm bed looking at pictures of the different results of investing in a straw hut, a wooden shack, or even a brick mansion. Some structures collapsed from a blowing wind while only one provided secure shelter from a hungry wolf.

So, different methods clearly produce different results, right? When hurricanes and tornadoes arrive, will a house built on the sand provide the same results as a house built on the rock?

You may be wondering whether childrens’ stories and proverbs from scripture could have anything to teach us about our investment results recently and in the future. Consider that in just the next couple of minutes, we might learn something very valuable from briefly exploring the principle that different methods produce different results.

Most concisely, here is my fundamental assertion about accessing easy gains; for those who partner with markets, consistent investment gains are easy. Also, for all the rest, investing that is risky but is not recognized as risky is what provides the source of those easy gains to those who partner with markets, because so many blindly under-estimate risks that a few notice long before the mobs learn about those risks, such as from the mass media reporting one statistics that are already a month old or even an entire quarter or year out-of-date. The masses may be unpleasantly surprised because what they had believed to be safe or stable may be suddenly recognized as not currently safe or stable.

Those select few who notice changes early may prudently make practical adjustments that are insightful, brave, and of course not popular… yet. However, once those adjustments get popular, the easy gains of selective investors can be immense.

So, some humbly partner with markets, while others instead simply ignore or even violently resist market realities, discarding the simple truth of market realities and risks in favor of idolizing various ideals and ideologies in which they have been indoctrinated. They may vainly worship the guidance of commercial advertising, or of salespeople earning commissions and bearing the title of “licensed advisor” or “licensed agent,” or of the mass media’s dramatic and confusing analysis developed by only the most politically-correct economists. The masses may as well even complain forever about the unsatisfying guidance they have been following without making any personal adjustments to continuing to follow it!

Those blind speculators following the blind advisors are inevitably surprised when they recognize the reality of their speculative gambling, typically focusing desperately on the latest possible saviors as well as on any convenient excuses and targets of blame to explain how they have been victimized, rather than openly admitting that they have been negligently responsible for producing for themselves the natural results of their high-risk investing. They may as well keep putting all of their hysterical faith in partisan politicians to rescue their favorite investments from the realities of markets and economics.

But couldn’t politicians rescue the bicycle industry from the automobile industry? Could politicians rescue the tent industry from the construction industry? Could politicians rescue the firewood industry from the coal industry or the woodstove industry from the electrical stove industry? Could politicians rescue the telegraph industry from the telephone industry (or from fax machines and email)?

Or, what if we pass a pro-telegraph constitutional amendment or make a treaty with every nation in the world to only use telegraphs? Subsidies and restrictions on competition can certainly influence isolated territories, but eventually, telegraph technology simply may not compete with things like CBs and cell phones.

Politicians simply cannot rescue everyone from the progress of technological innovation. Politicians cannot rescue anyone at all from personal responsibility for diet and exercise. Politicians certainly cannot rescue everyone from the realities of geology (such as the depletion of fossil fuels like oil, coal, and natural gas and the natural consequences of such depletion).

Markets are informal collectives formed by the spontaneous actions of masses of people. Politicians cannot rescue the masses of people from the masses of people and their own actions.

You may have heard that God helps those who help themselves. Consider that God helps those who are committed to partnering.

Those who partner with markets prosper. For those who ignore or even resist the realities of market risks and opportunities (and instead stay withdrawn to read headlines and continue blindly investing in the promises of politicians and insurance companies and so on), such masses are still subject to the risks of a redistribution away from them toward those who have been insightful and brave and adaptive. In other words, different methods produce different results!

To partner with markets to access easy gains, call
407 4 EZ GAINS
(407 439 4246)

[that # is just a voice mail. You can directly reach me at 480 265 5522.]

Published on Dec. 10, 2010

Related articles

Up Next Investments – stocks, bonds, real estate, commodities, currencies

February 29, 2012
stock market

stock market (Photo credit: 401K)

Which investments will go up next?

Stocks? Bonds? Real Estate? Commodities? How about currencies?

Which ones will go up most? Which will go up longest? Which will go up furthest?

Every investor I know is interested in these fundamental questions. Some are more clear than others that these are their fundamental interests as investors- not doing what everyone else has been doing, but investing in what most investors are ABOUT to invest in most- simply because what most investors are about to invest in is the investment that is going up next.

A few service providers have been committed to answering these questions in advance for their network of investors. By providing you advance notice of what investments are going up next, we help your investments be the ones that are going up next. We help you make the investments that are going up next be your investments.

Price-Earnings ratios as a predictor of twenty...

Image via Wikipedia

Below are links to a few of the published forecasts made by our founder in the last several years.. Note that in many of the early publications, the “tone” may seem immature and even contentious. However, all along, the basic long-term analysis has been consistently valuable. Plus, the tone and overall quality of the writing has been developing, so that reading each newer material is not only informative in terms of being lucrative, but also a more enjoyable read.

March 3, 2003:
Why are investments diving…
and what can I do about it?
I published a simple explanation of the huge decline in global stock markets of the prior years. I also issued my first warning about coming instability in lending markets and then real estate. I forecast that gold would outperform stocks (which it did), and I featured the HUI sector of the US stock market (which dipped just below 120 in March 2003, then surged up to over 500 by early 2008, a gain of over 300%).

November 11, 2004:
“Are you affected by the real US deficit: oil?”
Oil was around $50 when this article was published. My warnings focused on a coming rise in gasoline prices, along with oil. The final target for oil (not stated in this article) was $140, which oil exceeded very briefly in the summer of 2008, then fell to the low $30s by late 2008.

September 9, 2005:
Lesson 1: “Worth its Weight in OIL
This article emphasizes the singular tangible importance of oil as a fuel in particular (but also for all petrochemicals such as plastic). By singular importance, I mean distinctive among all other investments, such as currency, stock shares, real estate, and even gold- hence the replacement of gold in the saying “worth it’s weight in gold” to the subtitle of the article: “worth it’s weight in oil.”

I specified that the one nation most economically dependent on oil- vulnerable to instability in the event of the rise in oil prices that I considered inevitable- is the United States, and again I emphasized the immediate danger in real estate (and an eventual resolution of an underlying weakness in the US stock market):

Stock market of Brussels

Image via Wikipedia

“If there is no fundamental economic strength in the US today, US real estate must decline eventually. Weakness in US stocks or the dollar which leads to a “flight to safety” [i.e. to real estate] is not the same as strength in real estate. Real Estate markets are nowhere near as strong as oil markets.”

“Think about it. Oil is the leader [reversing trend in 1999]. US stocks followed [in 2000]. The dollar followed them [in 2002]. Real Estate will follow next.”

Again, that was published September 6, 2005. In fact, in some major US markets, such as Phoenix Arizona, the real estate market had already peaked in the weeks just prior to that article (mid-August). The housing sector of the US stock market (HGX) had also just peaked (the very end of July).

December 12, 2005:
I restated my emphasis of my increasing concern about the US real estate market and my skepticism for long-term stability of the US stock market, as well as my strong preference for commodities, including gold and of course oil in particular, which both continued to rise (and far more than the relatively modest rising in US stocks as well as the overall real estate market).

July 21, 2007:
How To Safely Gain Over 1000% In A Few Years…
By Picking The Best Discounts
This was just prior to the peak and collapse in US stocks. I also titled a section “why real estate is so risky.”

“All-time highs in gold, oil, stocks, and real estate have all been highly promoted in recent years. Enthusiasm is extremely high in general for these markets. So, these are not the most ripe to gain.” That’s right- I was already thinking of the eventual weakness in oil and gold- not just the immediate instability in stocks and real estate.
“…So, compared to everything else, bonds may be the ‘safer’ discount for now, [discounted = likely to rise in value] since the US Dollar Index has not yet established a low/rebound.” Bonds did soar, as stocks collapsed, and the US Dollar index bottomed in early 2008, then surged.

August 25, 2008:
Stop Gambling: Quick!
Get Rich: Safely.
This article warned of the pending acceleration in the decline in US stocks.

March 3, 2009:
A Cure For The Common Misunderstandings
About Financial Markets
The title is rather clear.

3/4/09: Private distribution email (redpill_info link)
Without getting much deeper here into the volume of details available, note that you can easily browse through that yahoogroup and see a variety of messages on investments over the years, including many shorter-term forecasts. This email begins with one detail worth noting, though:

“By the end of trading today, I have exited all my mid-term positioning for a drop in stocks, which I expect to soon be reversing for a multi-month rally, though there is still a potential decline this week.”

The US stock market did indeed begin a multi-month rally the next week. The profit potential from that multi-month rally was tremendous, especially when compounded with profits from the previously recommended “short positions.” I knew that the coming multi-month rally had the potential to reach new highs in enthusiasm (confidence, sentiment), and in fact that target was reached recently, such that I am no watching closely for the first stages of a major stock market panic worldwide- much bigger than that of 2008 (or of 2000-2002, or even of 1929-1932).

An assortment of United States coins, includin...

Image via Wikipedia

Remember, some investors are always asking the question “Which investments will go up next?” Always, some forecasters explore that question and see advance indications of how that question will be answered. We help you make the investments that are going up next be your next investments.

Related articles

published 2009: Sept. 22

re-posted 2012: Feb. 28

%d bloggers like this: