The only way to achieve your objectives is to consistently outperform the Dow Jones Industrial Average.  Period.  End of story. That makes mutual funds bad investments, as the vast majority of them perform below the market average.  Bad investments drain wealth.   Let’s imagine that your basket of mutuals outperformed all the rest and returned market returns for the last ten years; that...Read More

They say inflation isn’t a problem, or that little exists in “the market” today. They couldn’t be more wrong. The difference between Nominal GDP and Real GDP is inflation. Nominal GDP is measured in current dollars, and Real GDP is measured in a prior year’s dollars (in this case 2005 dollars.)  Below is a chart comparing stock market...Read More

I closed the final chapter of LOSE YOUR BROKER, NOT YOUR MONEY by recommending a balanced approach towards investment by splitting your assets equally among three or four asset classes, citing the below allocation example: Stocks    25% Bonds     25% Gold      25% Cash      25%   As mentioned in the book, when making...Read More

As you know, GDP is reported by the government after market activity has occurred. The stock market is priced daily on the whims of current news and events. For this reason, the DJIA will always trade around GDP, at some multiple above or below it. Remember that GDP is where the DJIA always wants to go. That’s its...Read More