What's obvious to us might not be to you. Past investment performance does not guarantee future results. Whatever you don't understand, any word in this text bearish, bull, bear, the bull market, the bear market, interest rates you go to google search engine or investopedia.com to find the meaning of it. All of our clients receive study material to get educated. It will take you thousands of hours only to listen and read it. There is no one formula or system to grow our investment portfolio. People can consider many, many options with our investment portfolio. One option is that our investment portfolio can be used only for educational purposes. It enables investors to know in which asset classes we are at a current time. Use google search engine to figure out the percentage of investors beating the market. It will prove, how extremely valuable to investors is our portfolio for educational purposes. Additionally, people can track our investment performance for a long time before taking any action. Another option is that only 3%, 5%, or 7% of investors wealth can be allocated accordingly with our investment portfolio. It does not need to be 100%!!! There are many, many other options to consider and we leave it to you.
People most often ask us about our investment strategy. We don't have one definition or answer. We are flexible, and we don't have one approach. We maneuver between all asset classes. We follow the free market, and we know that we don't have capitalism. We have crony capitalism, socialism and it forces us to adjust. It forces us to track the economy, governments and central banks around the world. Whatever we do today may change in two years. I don't know with 100% certainty what interventions by governments and central banks will take place in one, two, or three years. We observe how governments, central banks rob and enslave hard-working people. We notice which asset classes they inflate, and everything that I write applies to almost every country in the world. The free market cannot operate freely, and we work to find these interventions and figure out their side effects. Energy accumulates, and at some point, the free market takes off. It is the moment when we have the most calmness because we know we ride an asset class with the free market, instead of participating in a bubble created by governments. Bubbles are very profitable, and we see nothing wrong in riding them. You can always back up one bubbling asset class with another asset class. It's how we make sure that the risk is low, or at least appropriate, and acceptable. We don't use fundamentals to time the market. Fundamentals give us only the broad picture. You want to know more about this game then the answer from me to you would be the free market economy and the Austrian school of economics. When one asset class is moving, then almost everything within that asset class is moving in the same direction. When real estate as an asset class is up, then house prices in most of the country go in the same direction. When real estate as an asset class is down, then house prices in most of the country go in the same direction. You have more asset classes than the real estate. You also have the stock market, bond market, precious metals, commodities, and alternatives like cryptocurrencies. You give us more credibility when it comes to everything that we say. We deserve at least some credibility thanks to our investment performance. Therefore we write our main three rules:
1. Low risk, preserve our capital.
2. Low risk, preserve our capital.
3. Remember rules number one and two.
We don't know everything, and I don't have a crystal ball. I have never said I am right about everything.
One famous money manager said, and I quote:
I’ve learned many things, but perhaps the most significant is that it’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.
Here is my quote:
I make time my asset, instead of a liability.
We will give you an example of low risk. Low risk means we don't touch what most mainstream media economists and money managers recommend. We watch Bloomberg and CNBC only for entertainment when we are bored. We are happy when we see Austrian economists and money managers in the mainstream media. Unfortunately, it's a somewhat rare occurrence. The bond market is a one big, fat, ugly bubble, and no matter how much money someone tried to pay us, we would never commit a sin and buy bonds. It is number one bubble of all bubbles created by governments and central banks. An example which we give about the bond market is just a short, one opinion about low risk. In the United States, we have a 36 years old bull bond market. Do you know any bull market lasting longer than 36 years? We have a similar situation in other countries around the world. The bull market cannot last forever, and after bulls come the bears! Bulls make money, bears make money, and pigs get slaughtered! The problem is that governments, politicians and central banks slaughter all hard-working people. As always governments create a problem, later blame the free market for that problem, and at the end spread their propaganda how a government is needed to solve a problem created by them. People need to know we don't have a free market economy. You tell me a country with no income tax. You don't have a free market economy when you have an income tax. Having a job, willingness to work and be productive is not a privilege given to the people by their governments. It is a right of every man and woman. How come governments punish hard-working people with an income tax for having a job? You tell me a country with no central bank. You don't have a free market economy when you have a central bank. Intellectuals are one of the biggest enemies of the free market. We have all these clueless economists, financial experts, politicians, central bankers who think they know something. When it comes to the economy and economic prosperity you, me, and everybody else don't know the economy better than the free market. The free market needs to set interest rates and not these clueless central bankers. You don't have a free market economy when governments have the monopoly over the issue of money. Today what is low risk for most of the people is high risk for us. We don't mean only the bond market, but also other asset classes. We are conscious and alert when it comes to all existing bubbles created by governments and central banks. Additionally, we are aware of the inflation versus deflation debate in the investment community. Our contrarian view is the main reason which pushes our investment performance.
On November 24, 2017, we published a new eBook, and we are out from the US stock market. We took our profits, and we no longer participate in this bubble. We don't measure stock market performance from this date in currencies. We compare markets performance to the price of bread, butter, milk, fruits, vegetables. We compare it to health care costs, Swiss franc, gasoline prices, or housing expenditures. It's enormously weird to me to see most of the people measuring their investment performance in their home currency. People can purchase fewer goods and services because of inflation created by governments and central banks, and on top of that, the US dollar weakens a lot compared to almost everything. What's important to mention is that inflation does not mean rising prices. It applies to people in every country and not only the United States. I am not an American, and I don't live in the United States. I give the USA as an example because US dollar is the world's reserve currency. Rising prices are symptoms of inflation created by governments and central banks. It acts as a hidden, additional tax levied on all hard-working people. Inflation does not need to show up in your supermarket. It can show up in the bond market, or in another asset class. Despite being an equity bear, we always see opportunities, mainly in Switzerland, Singapore, Norway, Monaco, Liechtenstein, Cayman Islands, emerging markets, and a new country in Europe, Liberland. It sounds excellent - Liberland and Liberty. Additionally, we like Hong Kong. What we don't like about Hong Kong is their currency pegged to the US dollar. We were bullish about New Zealand, but it is the history because of New Zealand's new prime minister who attacks capitalism and embraces socialist roots. What bothers us is that hard working people attack capitalism as well. People need to know that we don't have capitalism, we have crony capitalism and socialism. It is a difference similar to the difference between the Alps in Europe and the Carribean region.
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