The Flag and The Free Market!
It’s Flag Day today! This commemorates the adoption of the flag of the United States, which happened June 14, 1777 by resolution of the Second Continental Congress. Since that day in 1777 the United States Flag has been a symbol of Freedom around the world.
Our flag represents our free market economy as well! Under the Red, White and Blue the United States of America has been championing free markets for over 233 years. Free Markets have been an example of the most efficient model for economic growth and prosperity around the world! THE FREE MARKET WORKS!
Do you believe that the Free Market Works!? Is your investment strategy capturing all the growth the Free Market offers? Most investment options are built on the assumption that Free Markets Fail. How are you invested?
There is an investment philosophy called Free Market Portfolio Theory that is built on the conviction that free markets work. Take a moment to Google “Free Market Portfolio Theory” and/or attend one of our seminars this summer. Learn how to invest consistent with your beliefs in the free market.
The Free Market Works!
You can win an American Flag!
Send us an email and let us know that you believe in the Free Markets!
You will be entered into a drawing to win an American Flag!
Respond before 6/21/2010 to be entered.
100 Million Reasons to be Optimistic about the USA!
Opinion: What American Population Will Look Like in 2050 – AOL News
Here is a great article that gives reason to believe that the next 40 years will be very good for the US economy. The optimism does not lie in the brilliance of our government or the strength of our middle class or some new invention that will secure our leadership on the world scene. It is more simple than all of that. The reason to be optimistic is the census projection that the US population will reasonably grow by 100 million people by the year 2050.
Source: U.S. Census Bureau, International Database
Population growth is vital to the sustainability of developed nation. A vibrant and young work force can be a catalyst for change and innovation. Fertility and a commitment to raising children create a strong forward thinking mentality in how we manage current opportunities. The 100 million additional “producers” will help to pay for the costs of caring for a manageable percentage of the population that are over 65 and not as active in the economy.
A shrinking and aging population can devastate an entire culture and economy in one or two generations. There are countries in Europe and Asia that appear to be on an unsustainable and irreversible path of population decline! By 2050 China and some of Europe will see over 1/3rd of their population over 60yrs old. History does not offer a positive outlook for declining population!
Despite the current struggles we face there is reason to be optimistic for future generations of Americans. Support strong and healthy families! Teach kids how to work hard – by example. Be optimistic!
Who Wants Average??
I am more convinced than ever that the best investment returns come to those that invest in a broadly diversified and unmanaged group of stocks. Some would say, “you are getting the average return of thousands of companies.” That is not true! Rather, you are benefiting from the collective wisdom of millions of market participants.
Evidence is overwhelming that the Free Market provides the very best investment returns over time. However, many people still resist this simple strategy. Why?? People wrongly think the market return is a mediocre return.
Richard Larrick and Jack B. Stoll suggest that most of us have bad intuitions about averaging. We assume that averaging means dumbing down or compromising. When people are faced with the choice of picking pieces of advice from a number of experts, they try to pick the best expert rather than simply average across the group. Another reason, surely, is our assumption that true intelligence resides only in individuals, so that finding the right person – the right [money manager], the right CEO – will make all the difference. In a sense, the crowd is blind to its own wisdom. Finally, we seek out experts because we get, as the writer Nassim Taleb asserts, “fooled by randomness.” If there are enough people out there making predictions (i.e. over 27,000 mutual fund managers), a few of them are going to compile an impressive record over time. That does not mean the record was a product of skill, nor does it mean the record will continue in the future.
The Wisdom of Crowds, James Burowiecke
You are able get the collective wisdom of millions, why settle for the limited ideas of a few? Markets are Efficient! Stop paying for self proclaimed experts that promise you something they have not and can not deliver. Free Market Portfolio Theory efficiently operates on a proven investing philosophy to capture the best return that the entire market has to offer prudent investors!
New Taxes are not the Answer
It would be comical if it were not so financially devastating.
The financial industry as a whole has been ruthless in its methods of stripping investors of their savings through expensive investments, terrible advice and very high fees. The huge profits have come at the expense of individuals and their savings. 2009 was no exception!
The Federal Government sees the profits and sees a new tax as the solution. The real problem is not being addressed by a punitive tax! What is the real problem?! Traditional financial services companies are not serving their clients, they are serving themselves!
There is much better option. “FIRE THEM!” Fire the financial companies that charge these fees to you! “STOP PAYING!” You do not have to pay the high fees and you do not have to unwittingly pay the punitive tax. You can bypass all the complicated and expensive money management schemes.
Learn some basic principles about investing and saving your money! It is not complicated! Then you can objectively evaluate your current investments and decide if you are paying fairly for what you are getting.
Make 2010 a learning year! Explore competing options.
Inflation Protection and Gold
If history repeats itself, then offers to buy gold during a tough and uncertain economy is like watching “It’s a great life” at Christmas Time. Feels good and we know the ending.
Gold has not ended well as a long term inflation hedge in the past and it will not in the future! Buying gold is part of a Market Timing Strategy. Timing the market is like gambling with long term savings. Wear gold, don’t bet on gold.
An excellent hedge for inflation over the past 80yrs has been an appropriate mixture of equities and fixed income! Mark Matson, founder of the Matrix and Matson Money does a great job of defending the free market investing model! Listen as Mark insists on being diversified and as he explains the “Three Factor Model”.
The Free Market provides excellent investment returns to the disciplined investor!
Over 60 years of proof! Come to the next seminar. Learn the simple truth about sound investing.
Come to our next seminar on Monday, January 18 from 4-6 pm in our office.
