Tag Archive | "investing risk"

The Biggest Risk to Your Wealth

To be… or not to be… irrational.

That is the question.


Image from www.behaviorgap.com (1)

Richard Thaller  won  the 2017 Nobel prize in economic science for showing that people are predictably irrational.

“How will you spend $1.1 million prize?”, he was asked.

He said: “This is quite a funny question. I will try to spend it as irrationally as possible.”

That is amusing.

Yet the essence, of Thayler’s work, the Behavior Gap, is deadly serious.

The US stock market bull is now eight years and seven months long, a record.

So why isn’t everyone rich?

A behavior gap exists.

The rates of return earned by most investors who move their money around in emotional responses is less then the average in markets.

Human emotions lead to poor investing decisions. We spend too much and save too little… then expect what little there is to generate too much income. We refuse to cut our losses on crashing investments because we can’t admit our mistakes. We buy houses and stocks when prices are high, ignoring the fact that it won’t keep going up forever.

Illogical behavior has economic consequences: Baby Boomers haven’t saved enough to retire.  Americans kept buying houses even as prices soared causing the biggest economic downturn since the 1930s.

That’s not amusing.

This is why you should learn how to use math based financial news to make investing decisions instead of relying on the conjecture and speculation of economic news that tends to stimulate our  irrationality.


(1) www.behaviorgap.com



Get More Bang Out of Risk

The chart below shows one of the biggest investing ripoffs of the last 100 years.  Since the 2009 recession, interest rates for the US dollar have been almost zero despite the fact that it has been proven that this is a poor way to stimulate the economy.  Japanese yen interest rates were depressed for over a decade without any good results.

The truth is that zero interest helps the rich and hurts the middle class.

federal reserve

Click on images to enlarge.   Interest rates from the Federal Reserve website (1)

Finally after eight years, US dollar interest rates are rising.

effective fed rate

Fed Funds Rate chart at Ycharts (2)

Have you seen the interest rates on your deposits go up?

The Wall Street Journal article “Want a Higher Interest Rate on Your Bank Account? Tough Luck” (3) helps explain why.

The article says: The Fed has been raising short-term rates, yet many banks are still paying peanuts to depositors.

Banks have been dealing with interest-rate cycles and depositors for decades, but a number of factors, both psychological and technological, make this time of rising rates different. A decade of near-zero rates, more competition from online firms, less loyalty from customers and new capital rules, among other factors, are making preparations more difficult.

“We’ve never really seen this movie before,” Marianne Lake, chief financial officer of J.P. Morgan Chase & Co., told investors recently.

A hundred year relationship between returns on deposits, bonds and stock market growth has been distorted for almost a decade.   Wise investors are asking “why” and “how will this affect future markets?”

To answer this questions, we should ask, “Who benefits most from low and zero interest rates?”

Governments and big business gain most because the cost of their debt drops and stays low.  Big borrowers tend to borrow more.  (Why not when it costs nothing?)  The middle class man in the street and small business finds it harder to save without extra risk.

Owners of big business also gain because low interest rates force savers to become equity investors.  This drives up the price of shares and makes the big shareholders incredibly rich.  Higher share prices inflate balance sheets, allows them to borrow even more and provides liquidity to unload overpriced shares!

The financial industry also gains because low interest rates drive small investors into an unstable, over priced stock market.

Research has shown that more than half of all American households will not have enough retirement income to maintain the living standards they were accustomed to before retirement.

This fact comes in the face of last week’s report by the Social Security trustees who say “The Social Security trust fund will be exhausted in 17 years and Medicare’s main fund in 11 years, according to the latest estimates”.

What should we do?  The standard answer is “Save more money and invest”.  

This recommendation glosses over the fact that Wall Street is bleeding savers dry.  The real problem is that investors ARE NOT earning their fair share of market returns.”   Actively managed mutual funds, in which many workers invest their retirement savings, are enormously costly and have not kept pace.

Where is safe to invest?

The answer is “Every type of investment has risk”.  The key is to be properly paid for taking it and to keep costs low.

Here is a basic fact that can help you get the maximum bang out of your savings for the lowest risk .

Industrialized economies seem unable to increase their output at any rate better than about 3% percent a year on a sustained basis.  This seems to be a universal standard of human evolution.

This is a huge fact as it means we should not expect major economies to grow faster than about 3%.

This is a baseline that can help us sort out whether an investment has extra or too little risk premium because the baseline for safe savings than should be about the same as industrial growth…3% … if the money supply is keeping pace with the economy.

Bank accounts (especially if government guaranteed) and government bonds, for example, are perceived as the safest investments.  A look at their long term history shows that they pay about 3%.  So if a bank account or government bond pays less… in the long term it’s bad. If it pays more…that’s better.

Yet the fact is that bank accounts will not really make money.  They will just keep up with growth…at 3%.

Knowing this, rather than wasting time trying to avoid risk… which cannot be done, we can assess risk and what we are paid to take it instead by asking:

#1: How much risk is there in any particular investment?

#2: What perceptions do the market have of the risk?

#3: What risk premium is due?

To get real growth requires taking risk.  If an investment appears to be less safe than the safest (that pays 3%) the less safe investment will pay more than 3%.  The extra payment is called a risk premium.

Bonds pay more than bank accounts because they are perceived to be less safe.  Stocks pay more than bonds because they are perceived even riskier.  Emerging market stocks pay more than major market stocks.  Emerging market bonds pay more than major markets bonds.

Over the long run, bonds issued in countries and currencies perceived to be stable pay 5% to 7%… if they are issued in their own currencies.

Stocks in major countries should pay 7% to 10% annual return in the stock market as a function of global growth, long term earnings growth plus risk premium (above bank accounts and bonds).

To attain higher growth than 7% to 10%, investors must either increase risk, trust luck or spot distortions.

These facts are good to know because the bulk of investors are almost always wrong in the short term.  Most investors always try to avoid risk.  Most investors dump their wealth into investments that are perceived to be safe.  This creates excessive demand and lowers value and actually makes the perception wrong.

Value investors can use mathematical analysis to spot trends created by the bulk of investors trying to do what they cannot… avoid risk.

The current low interest rates in the US, Canada, Europe and Japan are unprecedented and have been for almost a decade. 

These low rates have created all types of distortions that have been building far too long.  The answer to cashing on the correction is to find low cost ways to invest in value… and wait.   The return to long term fundamentals will provide maximum return with minimum risk.


Investing Beyond the Boom

Warren Buffet once warned against the Cinderella effect.

He said “Don’t be fooled by that Cinderella feeling you get from great returns.  Nothing sedates rationality like large doses of effortless money.  After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball.  They know the party must end but nevertheless hate to miss a single minute of what is one helluva party.  Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”

Cinderella may have lost a shoe when she fled the party to meet a midnight curfew.  We can lose much more when we rush from a crashing stock market.

Most investors face emotional dangers that build in rising markets.

Almost everyone feels good.

But the clock of economic reckoning is ticking.

No wants to see it.  Nothing rises forever and especially… not everything at the same time.

Yet no one wants to leave the party until the end.

But many edge closer to the door.

When the clock chimes there could be a stampede even though leaving in a hurry may be the worst way to go.

Here are seven steps that can help avoid this risk.

  • Choose investments based on markets instead of shares.
  • Diversify based on value.
  • Rely on financial information rather than economic news.
  • Keep investing simple.
  • Keep investing costs low.
  • Trade as little as possible.
  • Make the decision process during panics automatic.

One strategy is to invest in country ETFs that easily provide diversified, risk-controlled investments in countries with stock markets of good value.  These ETFs provide an easy, simple and effective approach to zeroing in on value.  Little management and less guesswork is required.  The expense ratios for most ETFs are lower than those of the average mutual funds.  Plus a single country ETF provides diversification equal to investing in dozens, even hundreds of shares.

A minimum of knowledge, time, management or guesswork are required.

The importance of…



and inexpensive. 

Keeping investing simple is one of the most valuable, but least looked at, ways to avoid disaster.  Simple and easy investing saves time.  How much is your time worth?  Simple investing costs less and avoids fast decisions during stressful times in complex situations where we are most likely to get it wrong.

Fear, regret and greed are an investor’s chief problem.  Human nature causes  investors to sell winners too soon, and hold losers too long.

Easy to use, low cost, mathematically based habits and routines help protect against negative emotions and impulse investing.

Take control of your investing.  Make decisions based on data and discipline, not gut feelings.  The Purposeful investing Course (Pi) teaches math based, low cost ways to diversify in good value markets and in ETFs  that cover these markets.  This course is based on my 50 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

Enjoy Repeated Wealth With Pi

Pi’s mission is to make it easy for anyone to have a strategy and tactics that continually maintain safety and turn market turmoil into extra profit.

One secret is to invest with a purpose beyond the immediate returns.  This helps create faith in a strategy that adds stickiness to the plan.

Another tactic is to invest with enough staying power so you’re never caught short.

Never have to sell depressed assets during periods of loss.

Lessons from Pi are based on the creation and management of Model Portfolios, called Pifolios.

The success of Pifolios is based on ignoring economic news (often created by someone with vested interests) and using financial math that reveals deeper economic truths.

One Pifolio covers all the good value developed markets.  Another covers the emerging good value markets.

The Pifolio analysis begins with a continual research of 46 major stock markets that compares their value based on:

#1:  Current book to price

#2:  Cash flow to price

#3:  Earnings to price

#4:  Average dividend yield

#5:  Return on equity

#6:  Cash flow return.

#7:  Market history

This is a complete and continual study of almost all the developed major and emerging stock markets.

This mathematical analysis forms the basis of a Good Value Stock Market Strategy.   The analysis is rational, mathematical and does not worry about short term ups and downs.

This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

Learn how to invest like a pro from the inside out.

At the beginning of 2019 my personal Pifolio is based on select ETFs in the Keppler Developed and Emerging markets.  My Pifolio is invested in Country ETFs that cover seven developed and three emerging markets:

Hong Kong
United Kingdom
South Korea

Don’t give up profit to gain ease and safety!

Regardless of economic news, these markets represent good value and have been chosen based on four pillars of valuation.

  • Absolute Valuation
  • Relative Valuation
  • Current versus Historic Valuation
  • Current Relative versus Relative Historic Valuation

When you subscribe to Pi, you immediately receive a 120 page basic training course that teaches the Pi Strategy.   You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.

You also begin receiving regular emailed Pifiolio updates and online access to all the Pifolio updates of the last two years.  Each update examines the current activity in a Pifolio, how it is changing, why and how the changes might help your investing or not.

Included in the basic training is an additional 120 page PDF value analysis of 46 stock markets (23 developed markets and 23 emerging stock markets).  This analysis looks at the price to book, price to earnings, average yield and much more.

You also receive two special reports.

In the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

I did well then, but always thought, “I should have invested more!”  Now those circumstances have come together and I am investing in them again.

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.  The two conditions are in place again!

30 years ago, the US dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  The trends are so clear that I have created a short, but powerful report “Three Currency Patterns for 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but in this special offer, you receive the report, “Three Currency Patterns for 50% Profits or More” FREE when you subscribe to Pi.

Plus get the $39.95 report “The Silver Dip 2019” free.

With investors watching global stock markets bounce up and down, many missed two really important profit generating events over the last two years.  The price of silver dipped below $14 an ounce as did shares of the iShares Silver ETF (SLV).   The second event is that the silver gold ratio hit 80, compared to a ratio of 230 only two years before.

In September 2015, I prepared a special report “Silver Dip 2015” about a silver speculation, leveraged with a British pound loan, that could increase the returns in a safe portfolio by as much as eight times.  The tactics described in that report generated 62.48% profit in just nine months.

I have updated this report and added how to use the Silver Dip Strategy with platinum.   The “Silver Dip 2019” report shares the latest in a series of long term lessons gained through 40 years of speculating and investing in precious metals.  I released the 2015 report, when the gold silver ratio slipped to 80.  The ratio has corrected and that profit has been taken and now a new precious metals dip has emerged.

I have prepared a new special report “Silver Dip 2019” about a leveraged speculation that can increase the returns in a safe portfolio by as much as eight times.

You also learn from the Value Investing Seminar, our premier course, that we have been conducting for over 30 years.  Tens of thousands of delegates have paid up to $999 to attend.  Now you can join the seminar online FREE in this special offer.

This three day course is available in sessions that are 10 to 20 minutes long for easy, convenient learning.   You can listen to each session any time and as often as you desire.

The sooner you hear what I have to say about current markets, the better you’ll be able to cash in on perhaps the best investing opportunity since 1982.


Tens of thousands have paid up to $999 to attend.

This year I celebrated my 51st anniversary of writing about global investing.  Our reports and seminars have helped readers have better lives, with less stress yet make fortunes during up and down markets for decades.  This information is invaluable to investors large and small because even small amounts can easily be invested in the good value shares we cover in our seminar.

Stock and currency markets are cyclical.  These cycles create extra profit for value investors who invest when everyone else has the markets wrong.  One special seminar session looks at how to spot value from cycles.  Stocks rise from the cycle of war, productivity and demographics.  Cycles create recurring profits.  Economies and stock markets cycle up and down around every 15 to 20 years as shown in this graph.


The effect of war cycles on the US Stock Market since 1906.

Bull and bear cycles are based on cycles of human interaction, war, technology and productivity.  Economic downturns can create war.

The chart above shows the war – stock market cycle.  Military struggles (like the Civil War, WWI, WWII and the Cold War: WW III) super charge inventiveness that creates new forms of productivity…the steam engine, the internal combustion engine,  production line processes, jet engines, TV, farming techniques, plastics, telephone, computer and lastly during the Cold War, the internet.  The military technology shifts to domestic use.  A boom is created that leads to excess.  Excess leads to correction. Correction creates an economic downturn and again to war.

Details in the online seminar include:

* How to easily buy global currencies, shares and bonds.

* Trading down and the benefits of investing in real estate in Small Town USA.  We will share why this breakout value is special and why we have been recommending good value real estate in this area since 2009.

* What’s up with gold and silver?  One session looks at my current position on gold and silver and asset protection.  We review the state of the precious metal markets and potential problems ahead for US dollars.  Learn how low interest rates eliminate  opportunity costs of diversification in precious metals and foreign currencies.

* How to improve safety and increase profit with leverage and staying power.  The seminar reveals Warren Buffett’s value investing strategy from research published at Yale University’s website.  This research shows that the stocks Buffet chooses are safe (with low beta and low volatility), cheap (value stocks with low price-to-book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios). His big, extra profits come from leverage and staying power.  At times Buffet’s portfolio, as all value portfolios, has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

Use time not timing.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio, the better the odds of outstanding success.

A 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of out performance to 70%.  However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Learn how much leverage to use.  Leverage is like medicine, the key is dose.  The best ratio is normally 1.6 to 1.  We’ll sum up the strategy; how to leverage cheap, safe, quality stocks and for what period of time based on the times and each individual’s circumstances.

Learn to plan in a way so you never run out of money.  The seminar also has a session on the importance of having and sticking to a plan.  See how success is dependent on conviction, wherewithal, and skill to operate with leverage and significant risk.  Learn a three point strategy based on my 50 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

The online seminar also reveals  the results of a $80,000 share purchase cost test that found the least expensive way to invest in good value.  The keys to this portfolio are good value, low cost, minimal fuss and bother.  Plus a great savings of time.  Trading is minimal, usually not more than one or two shares are bought or sold in a year.  I wanted to find the very least expensive way to create and hold this portfolio so I performed this test.

I have good news about the cost of the seminar as well.   For almost three decades the seminar fee has been $799 for one or $999 for a couple. Tens of thousands paid this price, but online the seminar is $297.

In this special offer, you can get this online seminar FREE when you subscribe to our Personal investing Course.

Save $468.90 If You Act Now

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive FREE the $29.95 report “Three Currency Patterns for 50% Profits or More”, the $39.95 report “Silver Dip 2019” and our latest $297 online seminar for a total savings of $468.90.


Triple Guarantee

Enroll in Pi.  Get the basic training, the 46 market value report, access to all the updates of the past two years, the two reports and the Value Investing Seminar right away. 

#1:  I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free, easy diversified investing.

If you are not totally happy, simply let me know.

#2:  I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.

#3:  You can keep the two reports and Value Investing Seminar as my thanks for trying.

You have nothing to lose except the fear.   You gain the ultimate form of financial security as you reduce risk and increase profit potential.

Subscribe to Pi now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, the “Silver Dip 2019” and “Three Currency Patterns For 50% Profits or More” reports, and value investment seminar, plus begin receiving regular Pifolio updates throughout the year.

Subscribe to a Pi annual subscription for $197 and receive all the above.

Your subscription will be charged $299 a year from now, but you can cancel at any time.







(1) Federal Funds Chart

(2) Effective federal funds rate chart

(3) www.wsj.com:  Want a higher interest rate on your bank account tough luck


The Global Investing Value of Missions

Missions help define value and bring profits that go far bigger than the bucks.

Secret #1:  Have a Mission

Jeff Bezos’ belief in missions caused Amazon.com shares to rise like this.

amazon chart fnanceyahoo

(Click on photo to enlarge)

There is more to this than money though knowing it can bring you wealth.

In 1994 Jeff Bezos made a cross-country drive from New York to Seattle, creating  the Amazon business plan on the way.  He left a good paying job and started Amazon.com in his garage.

He had three simple ideas in mind.  Beat the tax man… use quirks of the internet and fulfill a mission.

Defying Gravity in Wealth

Having a mission is the most powerful of these ideas… especially in our existing era of rapid change.  What is reasonable today… may not be reasonable soon.  Take Bezos’s play on tax benefits.  Tax advantages  can evaporate on the whim of Congress.  How about change on the internet?   There is no place where change happens faster.

Right now four companies that may not have seemed reasonable just a decade or so dominate the internet… Apple, Facebook, Amazon and Google.

Amazon.com is not even 20 years old.  Bezos started Amazon in 1994 in his garage.   Then he went billions in the hole.

Today, Bezos is listed as one of the wealthiest people in the world with an estimated net worth of US 22.1 billion.  He is ranked by Harvard Business Review as the the best living CEO.

According to Forbes, Amazon’s shares have “defied gravity”,  jumping 55% and adding $6.5 billion to Bezos’ net worth.

Yet Amazon could be gone in a flash.   The four internet giants: Amazon, Facebook, Apple and Google are competing fiercely.  The chart below from a Financial Times article “Battle of the Giants is about this four way competition and shows that Amazon…on paper… is the poorest of them all.

economist article

Graph from Financial Times article on the “Battle of these Giants”  (see link below).

Amazon has the least cash and lowest profit but I am betting on Amazon because of its mission.    More likely in another decade all four internet giants could be gone… or they’ll be also rans beat out by new  disruptive technology we cannot even imagine right now.

If Bezos… and Apple and all these giants with their enormous resources are at risk to change… how can we as small investors and micro businesses invest and survive in such a rapidly changing world?

The answer is provided by Bezos.

Bezos built his fortune based around two ahas and one concept… about missions and missionaries.

Bezos’ first aha was to invest in areas of rapid growth.  He had learned about the rapid growth of Internet use.  The second aha was that rapid Internet growth coincided with a U.S. Supreme Court ruling that online retailers did not have to collect sales taxes in states where they lacked physical presence.

His third and most important belief went beyond taking advantage of short term change.  He saw that long term success in investing and business relies on more than business acumen.

The key to lasting success is a mission.

Bezos said:   I strongly believe that missionaries make better products. They care more. For a missionary, it’s not just about the business. There has to be a business, and the business has to make sense, but that’s not why you do it. You do it because you have something meaningful that motivates you.

He summed up the key to prosperity and survival in business and investing.   Care… invest in… and work at… something that is meaningful to you.

This is why I have updated my report… “Running Risk – Investing in Risky Times”.   This report defines a formula for investing that works regardless of change.  You can  learn how to spot trends that emerge from change.  See how to unveil good value and find investment and business opportunities that can help you earn and fulfill your positive mission.

Money is no longer enough!

“Running Risk” is about how to profitably embrace change and find a personal and meaningful business investing path.

The report integrates three assets:

The first asset is a simple, common sense plan to understand the global economy so you spot trends for investing and business for profit.

The second asset is the knowledge of yourself for positivity and fulfillment and how to integrate YOU with the global economy.

The third asset is diversification for flexibility, safety and endurance.

Here is what you learn from “Embracing Change  – Investing in Changing Times”.

* Currency problems create wealth:  The Multi Currrency Sandwich.

The report starts with a look at currencies and how their purchasing parity threatens all wealth.  See why some currencies are not at equal risk. Gain ways to find extra value created by a strong (but fundamentally weak) currency with a low interest rate that is tensed with a weak (but fundamentally strong) currency that pays a higher rate of return.

The report begins by reviewing our January 2013 recommendation to borrow Japanese yen at 82 yen per dollar and invest the loan in US dollars and euro.  Within three months the yen had fallen to 96 yen per dollar and this multicurrency sandwich had created 21.5% profit in three months.

* Stock, economic and productivity cycles anticipate bull and bear trends in market and the global economy.

“Embracing Change”  tracks the Dow back over 100 years to reveal a consistent pattern of bull and bear markets that each last about 17 years.  The Dow has been in a sideways bear market since 2000.  Comparing the Dow from 2000 to 2013 to the Dow from 1966 to 1982 (the previous bear cycle)  shows why we could see another sharp retraction in the Dow now despite having  reached recent all time highs.

In 1974 (eight years after the bear began) the Dow collapsed nearly 50% before the great run up that began in the 1980s.  In 2008 (eight years after the next bear market began), the Dow collapsed nearly 50%.

The stock market had stormed upwards but a comparison of the Dow Jones from 1960 to 1974  and from 2000 to March 2013 was troubling.


1960 to 1974 Dow Chart from www.stockcharts.com

Notice four peaks representing over bought markets during a 17 year sideways bear market that ran from 1966 to 1982.

from www.stockcharts.com

2000 to 2013 Dow chart from  www.stockcharts.com

Learn what to do if the Dow is ready for one more sideways bear crash in this down cycle.

* How to anticipate new waves of technology.

Spotting innovations is as important as the 17 year cycles.

See a review of some of the top innovations that have entered the market in the past decade.  One innovation reviewed in the report is fermionic condensate invented by Deborah S. Jin. This is a superfluid phase formed by fermionic particles at low temperatures.

Fermionic condensate is special because it is a new form of matter, the sixth known after solids, liquids, gases, plasma and a Bose-Einstein condensate.

The way the atoms act suggest there should be a way to turn this matter into a room-temperature solid that is an everyday, usable superconductor. This would allow electricity to be transmitted with no loss and no heat.

Superconductor technology is being fed into the development of magnetically levitated trains. Free of friction these vehicles glide along at high speeds using a fraction of the energy of conventional trains.

Another new technology takes living cells, loads them into a printer, and squirts out a 3D tissue that could develop into a kidney or a heart.  This is the first printer for embryonic human stem cells.

A research group at Heriot-Watt University in Edinburgh, Scotland, has created a cell printer that spits out living embryonic stem cells.

The new printing method could be used to make 3D human tissues for testing new drugs, growing organs, or ultimately printing cells directly inside the body for use in regenerative medicine — repairing, replacing and regenerating damaged cells, tissues or organs.

Then the report deals with another major innovation factor which is… “How do we sort out the winning innovations from the bad?”

There are new innovations announced almost daily… some created by huge companies.   Take MSN Direct as an example.  This technology piggybacked on FM radio signals.  Microsoft said this was the next big delivery system for delivering data to portable devices and Bill Gates seemed particularly fond of watches that received the signals. Alas, cell,phones and their networks offered stronger signals, wider coverage, and more flexibility. The MSN Direct data folded years ago.

Another example is TheGlobe.com.   This was social networking before Facebook, Twitter, or LinkedIn.  TheGlobe started in 1995. Three years later the IPO stock was offered at $9 a share and skyrocketed to $65,  the largest first day gain of any IPO in history up to that date.  Then online advertising went bust, the stock price plummeted  and the TheGlobe.com was laid to rest in 2008.

How to Make a Small Fortune

Even spotting winning innovations does not always convert into profit.   The way to make a small fortune is to start with a large fortune and turn every $38 into $26.

That is what happened with the winning innovation… Facebook.   Though the innovation has worked well… many investors were wiped out when the stock’s $38 IPO price lost over a quarter of its value in less than a month and went on to lose over half its IPO value in three months.   All this time later, the shares are $26 per share well below the IPO launch.

facebook shares

Secret #2:  Know Thyself

* How to integrate YOU with trends and the world.

Warren Buffet showed how selecting good shares is a unique personal art that begins with what you like and know. The ups and downs of markets have almost nothing to do with your investing success at all.

Warren Buffet, one of the world’s great investors, confirmed that understanding  your mission is a key component of success when he shared tips that are the foundation of how he invests.  Here are the core points he shared:

  1. Do what you like
  2. Money isn’t everything
  3. Work only with people you like
  4. Invest only in what you understand
  5. Don’t over diversify
  6. Keep looking for new opportunities
  7. Look for businesses that are available at a good price

“Running Risk” looks at how to put invaluable information to work using a PIEC wealth system.   PIEC is an acronym for “Personal Income Earning Corridor”. This concept of financial prudence differs greatly from traditional approaches of accumulating wealth.

Traditionally people invest to create income and profit.  They invest and work to live and support their lifestyle and aim towards a future of doing something enjoyable without work.

PIEC investors reverse the priorities. Instead of investing for profit, PIEC investors learn how to enjoy investing in a profitable way.

For example, if a PIEC investor loves golf, they’ll focus and invest in some aspect of the golfing trade.

“Running Risk” shares how PIEC uses the evolutionary cycle of business, the diffusion curve and the golden rule of simplicity.

Secret #3:  Be Smarter

How do we get to the core of true success?   “Running Risk” shows one example that was the core of Apple’s success… relaxed concentration.

Relaxed concentration helps you spot better trends that are interesting to YOU.  In times of rapid change, it is important to think beyond logic.  We need Super Thinking.

Super Thinking had a lot to do with Apple and why it has more revenue, more cash and more profit than Amazon, Google and Facebook combined.

Steve Jobs used Super Thinking.

I first started began my exploration of Super Thinking after hearing a quote from Aristotle Onassis.   He said that you do not need an astrologer to be a millionaire but to be a billionaire you do.  Astrology is a way of thinking beyond logic.

Later, I was a speaker at a Cayman Island investing seminar along with John Templeton.  He explained that he did everything to stay on top of trends but then also reviewed everything with a black box…. a form of thinking beyond logic.

Even later while conducting a book signing for my novel “The 65th Octave” I gave a talk about Super Thinking because this is the core of that book.   One attendee, began crying.  She explained that she had been Warren Buffet’s personal assistant and that she was so sorry because Buffet and Charlie Munger used these principles and encouraged her to use them, but she had ignored them.

My report “Embracing Change”  shares the results of my quest to gain greater intelligence by thinking outside the box.

With his passing, it became recognized that Steve Jobs was a mystic with mental access to Super Thinking wisdom.

Jobs’ biographer, Walter Isaacson, confirmed that Jobs  had a lifelong passion following basic precepts of Eastern thought, such as the emphasis on experiential prana, wisdom or cognitive understanding that is intuitively experienced through concentration of the mind.

Jobs loved “Autobiography of a Yogi” a book that helps us understand how and why we are more than our physical bodies.

Isaacson writes that on Jobs’ last holiday… just before his transition…  that this was the only book he read.

Jobs was integrating brain waves and we show why and how in “Embracing Change – How to Invest in Changing Times”.

Rapid change makes it impossible to logically understand what is going to happen.  In this report you learn how to escape the tyranny of reason. If you have 4.5 inches of information flowing through a 4 inch learning pipe, the solution is not to add another inch of information.  The answer is to first create a six inch pipe and then an even larger pipe…a never ending expansion of abilities!  This is super thinking!

* Getting safety and comfort from diversification and the six point command posture.

Finally after we think we are doing everything correctly, we diversify to protect against what we miss.  “Embracing Change” contains case studies of where I have diversified and shows:

Where why, when and how to buy gold and precious metals.

Where in the USA you can buy overseas shares.

* How to use ETFs for multi currency safety.

* When and why collectibles make more sense now then before as a diversification.

* The report reviews  recent recommendations and our current portfolio of shares.

* The report reviews the shares of ADK Ammunition… shares where conspiracy and opportunity collided.

atk inance.yahoo.com chart

Look at these investment possibilities:

* Aegion & Hyflux investments in water

aegion share yahoo.finance chart

Our site featured Aegion on December 6, 2012 and the share immediately rose over 10% in three months.

* Jyske, Skybest & Axel Springer, two plays on a falling euro.

* Unicredit & Jyske shares in the shunned European finance.

* Brookfield Renewable Energy Partners… an ultimate inflation protector.

Brookfield renewable energy finance.yahoo.com chart

We first wrote about Brookfield Renewable Energy Partners LP in 2010.  The shares have risen over 70% and in January 2013 the company was named as a top 25 dividend stock, according the most recent Canada Stock Channel ”DividendRank” report. The report noted that among the coverage universe, BEP.UN shares displayed both attractive valuation metrics and strong profitability metrics. The report also cited the strong quarterly dividend history at Brookfield Renewable Energy Partners LP, and favorable long-term multi-year growth rates in key fundamental data points.

* Singapore Real Estate Trusts… shares that are not a gamble on gambling but rose because of gambling.

* Why investments in smalltown USA have become big.

* How to move up as the global economy trades down.

This report is not a recommendation of these shares but offers case studies on WHY they were selected at the time we wrote and or invested in them.   “Embracing Change” shares ideas on how to be fulfilled in the search for value… and your mission through investing that can make the world a better place.

“Embracing Change” also reviews… the safest places to bank, multi dimensional investments that earn in two ways or more… the profit in natural health, sustainability and agriculture.

“Running Risk:  How to Invest in Risky Times” was just brought up to date last week and renamed Embracing Change to assist you in gaining fulfillment and profit.   However to make sure that this is a satisfying process for you, as with all our products we always offer complete satisfaction of your money back.

Money Back Guarantee

Order “Embracing Change – How to Invest in Changing Times”.  Learn how to create and fulfill your mission through investing.  I’ll email this report to you immediately.

Read the report and if not satisfied, let me know within 30 days and we’ll send a full refund… no questions asked.

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