The science of motivation in marketing, investing, & more.


130328-pedro-quezada-2p - Copy273AE31800000578-0-image-a-2_1451845824122 20130632991_66bf1cd43c_z108871093_wide-da33f530f8e0575f0ea91c21d4b286ec30e6b721-s900-c85 450728440

FILE - In this March 22, 2005 file photo, Damon Federighi shouts orders in the euro dollar futures pit at the Chicago Mercantile Exchange. Floor trading has shrunk to a fraction of its volume from two decades ago as faster, cheaper, computers take over the process of establishing prices on everything from pigs to Exxon Mobil’s stock. (AP Photo/M. Spencer Green, File)

cheering fans chi-jackie-robinson-west-world-series-watch-party-photos-082414
man walking to front of room


Air Force 2nd Lt. Jacob Bradosky crosses the finish line to win the 35th annual Marine Corps Marathon Oct. 31. Bradosky, 23, finished the 26.2 mile journey in 2:23:30. The Centerville, Ohio native is stationed at Vandenberg Air Force base in California.

Market Motivation: the value of motivation in marketing, investing, & more.


Respect what motivates you, what motivates others, & how to quickly trigger the motivations you value most.




Are you a business owner who is interested in quickly identifying the best method of online marketing for your priorities? Many marketing campaigns focus too much on publicity in general and not enough on converting shoppers to buyers in particular.

In other words, they waste your time and your money. So, if you do not even know whether your marketing budget is producing a profit, then maybe you would be interested in a marketing experiment that had no out-of-pocket cost to you (and that produces profits that are very easy for you to measure). You can learn more by clicking below.

First, when you think about marketing your business, consider these as the proper order of the priority steps to take (including for online marketing):

1) provide instant clarity about what services are offered
2) activate the underlying demand for the service (creating intrigue & urgency, plus reassuring the prospect about the benefits and value of that service)
3) brand yourself as the specific service provider that is “the best one” (at least for a particular type of person / situation)
4) finally, increase publicity / visibility (produce measurable increases in traffic)
Businessman using a digital chart during a meeting

There is a lot in common between owning a small business and being an investor, right? You selectively make decisions to invest your time and to risk money with the hope of making consistent, large profits.Maybe you are currently the 100% owner of a single business or maybe you reduce certain risks by diversifying (to own portions of a few different businesses or cash flow streams). Sometimes, it is very profitable to specialize (like by owning lots of local real estate as a landlord). However, investing in only a single market will also concentrate risk. How well do you know how to tell what actions are best for current market conditions?Shouldn’t you be at least as selective in all your investment choices as you would be in your choices of who to hire as an employee (or which home you will live in)? What if a competent expert was willing to show you how simple it can be to do that well?Since I started publishing investment forecasts in 2003, I have been repeatedly exposed to exactly how confused so many investors are about what it is that moves prices. Without respect for what motivates buying and what motivates selling, they will inevitably be surprised, perhaps very unpleasantly.

By 2004, I published warnings about why fuel prices were rising and what it would do to real estate markets and stock markets in the US, Europe, and many other regions. I also began to realize why so many investors were investing in ways that I knew would soon produce big losses for them.Exactly why were they so hesitant to sell overpriced investments? Why did they so often ignore discounted investments (which they could be buying so very cheaply)?

How did they get their presumptions (about issues like inflation, consumer credit, and bankruptcy laws)? I realized that a big part of the answer was that they had been marketed many misconceptions (in the media as well as in college). In other words, they had been “set up.”

Working in a law firm that specialized in bankruptcy law, I observed similar patterns in case after case. The clients of the law firm were so often very embarrassed to be there. They really did not seem to recognize the massive risks that they had been taking (like by borrowing hundreds of thousands of dollars to speculate on the future of real estate prices).

They did not say “I knew that I was taking massive risks and my gamble did not pay off.” Most of them seemed to me to have been startled by the consequences of their speculative gambling on real estate with borrowed money… even when the consequences were glaringly obvious. Many of them resisted the simple, terrifying reality for months or even years. They said remarkable things like this: “But everyone else was doing the same thing, too, so how could I have known that it was so risky?”

Further, whenever the promises of insurance companies or government agencies were broken, the clients of the bankruptcy law firm expressed just as much shock as most anyone else. They seemed to think of a written guarantee from an insurance company to be equivalent to an actual 100% probability!

Such “magical thinking” not only startled me, but scared me. In fact, as time went on, I realized that my own misconceptions were still in the process of being exposed and corrected (sometimes harshly).

I witnessed that, just like bankruptcy laws can protect consumers who have made promises that they have no way to keep, the same thing is true for insurance companies. There is no bigger concentration of risk than the insurance industry. That is literally all they do: concentrate huge amounts of risk and then diversify some of that risk.Further, just because a politician promises something obviously does not mean that the promises will be kept. The crisis in the Savings and Loan industry in the US in the late 1980s was bigger than what the government had been prepared to handle. The government insurance program’s “ponzi scheme” eventually did not bring in enough money to cover the massive liabilities, so the government insurance program went bankrupt. An entire sector of the financial industry simply collapsed. Yet, less than a few decades after that collapse, many in the US still think of US government insurance programs as magically reliable.

So, four years after I started publishing clear warnings about a global financial meltdown triggered by rocketing fuel prices, people in parts of Europe were eventually paying over $11 per gallon of diesel gasoline. Again, most investors (and even most investment professionals who presented themselves as competent) were surprised by the soaring fuel prices in 2008 as well as the subsequent collapse in prices of fuel, real estate, and financial stocks. Many years later, most investors that I talk to still do not seem to understand the simple realities that I understood in 2004 about global demand for fuel.

Most, even among investment enthusiasts, also do not seem to understand the core source of demand for all currencies. Even if you ask financial professionals, MBAs, or economics majors about why the purchasing power of “fiat currencies” can be so much more stable than commodities (like gold or silver or crude oil), again they often cannot offer a simple, intelligent answer. They may simply dismiss the question by erupting in to a tantrum about some tangent. Or, they just present data from a few select cases to argue “but sometimes there is at least one currency that is less stable than one of the most stable commodities of that time period.”

Why are currency prices ever stable? To be more specific, where does the demand for currencies come from and why is that demand sometimes stable?

Most investors do not seem to understand what motivates the creation of currency systems. They may not understand what motivates the opening of commodity exchanges or stock markets.

They do not understand the connection between court systems and demand for currency. When bankruptcy laws change, most people do not know how that will eventually change the investment behavior of the various people who print currency or the people who either hoard it, spend it on purchases, or risk it by lending it out to a borrower.


Risk is a big issue. Some people think of insurance companies as reducing risk (like by basically lending an insurance company $100,000 in the purchase of an annuity contract). But is insurance actually a low-risk industry or just another “calculated-risk” industry (like all the others)?

Most people in the insurance industry recognize that insurance companies do not reduce the risk of their policy holders. Insurance companies simply transfer the risk to their own company. (Also, when lobbyists are paid to create a massive transfer risk to a government, that is still just a transfer of risk, not a reduction of risk.)

When lots of people are guided to presumptively ignore many risks, that can lead to massive concentrations of risk. In other words, mainstream investors are being “set up.”

Why? Keep in mind that stock exchanges do not ever create any wealth. They are only operations for the transfer of the ownership of wealth from certain sources to certain recipients… kind of like governments, right?

So, when you think about investing, consider these as the proper order of your priority concerns:

1) Be clear on your current priorities (financially and in general).

2) Be clear on multiple ways of measuring risk and opportunity.

3) Beware especially of hysterical presumptiveness about investment options that are heavily promoted / government-subsidized.


If you are interested in additional insights or information on who qualifies for the investment services available through this website, click here: _____LINK NOT YET ACTIVE___.


More on the science of motivation:


%d bloggers like this: