“Don’t trust your government. Do your own research. Use common sense. If you don’t understand the strategy, don’t invest in it.“
Harry Markopolos is the man who blew the whistle on Bernie Madoff’s $60 Billion Ponzi Fund. Visit msnbc.com for breaking news, world news, and news about the economy'>Visit msnbc.com for breaking news, world news, and news about the economy'>Here is an breif interview with him:
Mr.Markopolos’ advice to investors should be translated to the non-financial world as well. If you rely solely on the information being presented to you by our government then you’re not getting the full story - ever.
Take responsibility for building your own knowledge base, independently of traditional sources, and implement strategies specifically designed by you, for your own benefit.
Tom Sirois
Great Barrington, MA
White House invitation ...
ReplyDeleteIn remarks of 4/19/2010, President Obama said, as before and since, “... we knew that we couldn’t keep repeating a pattern of bubble and bust that we’d been seeing; that it wasn’t a tenable model for our future ...”. Taking this goal at face value, the future may be much different than the past. Here are two asset price histories exhibiting bubble and bust (I like ‘serial herd behavior’):
“Real Homes, Real Dow” at
http://homepage.mac.com/ttsmyf/RHandRD.html
Might folks want to be attentive to the past’s ‘long-term averages’ ... rather than extremes ...?
For Real Homes, "Two gains in recent decades were followed by returns to levels consistent since the late 1950's.", 8/27/2006 N.Y. Times, quoted here (and see first chart):
http://homepage.mac.com/ttsmyf/RD_RJShomes_PSav.html
For Real Dow, the 70.3 year best fit +1.64%/year growth curve is included here (as are the 3 Fed Chair warnings):
http://homepage.mac.com/ttsmyf/recDJIAtoRD.html
Notably, the financial sector hardly ever shows you these two real histories. Letting the financial sector do your informing/thinking for you is obviously plenty hazardous.