October 8, 2006 – In a previous blog, we mentioned that an abundance of perspective is a critical key to building significant amounts of wealth. Why? Because perspective is the only tool that allows you to sort out reality from the masses of junk contained in information that is circulated by the mass media today. [...]

October 4, 2006 – It’s funny because someone wrote to me the other day, “Is your blog an investment blog or political blog?” I just simply replied that he should read the rest of my blog posts to understand that if you don’t understand politics that you will never be a top-tier investor. I’ll explain [...]

September 26, 2006 – As I looked at some of the daily trading volumes of some U.S. stocks this past week that have hit 52-week highs, I noticed an unusually large daily buying volume this week, some with volumes so exaggerrated that it is safe to assume that institutional buying is responsible for the lion’s [...]

September 17, 2006 – Sometimes, I’ll scan financial news on Reuters, Bloomberg, MSNBC and so on, not for information to make investment decisions, but just for ideas to write another blog entry. Occasionally I’ll find something to comment on. By now, most of you know that I find most financial news in major media to [...]

September 16, 2006 – Everywhere in the media, you have pundits saying that the commodities Bull Run is over – including even chief global economists of major investment firms like Steven Roach of Morgan Stanley. They’re all wrong. This is a case of everyone panicking from sharp corrections that no doubt have caused millions of [...]

September 16, 2006 – People continually employ flawed and deceptive statistics when making their investment decisions. In the short term, the performance of the U.S. stock market has enormous influence on all other major stock markets. One of the most closely watched indexes to gauge U.S. economic conditions is the Consumer Price Index (CPI), which [...]

September 13, 2006 – Everybody always thinks that smart people make money. But that’s far from the truth because smart people often lack the proper kind of intelligence. Probably less than 1/10th of 1% in the world have the book smarts to become a nuclear physicist but every year, the CEO of Goldman Sachs will [...]

September 10, 2006 – Everyone who has ever watched an episode of CSI (Crime Scene Investigation) knows that in order to solve crimes, crime scene investigators must determine a suspect’s motive. Likewise, a key determinant in tracking a serial killer is the psychological profile drawn up by FBI agents. Investment firms are well known for [...]

August 24, 2006 – The first task of becoming wealthy is to shed yourself of almost all of the beliefs surrounding investing that you’ve been taught. Most people, no matter where they are educated, go through their educational life learning to become robots whether they realize it or not. The “authority” figure tells them that [...]

August 18, 2006 – Mainstream news is the famous bandwagon jumper. It’s not uncommon for headlines such as “Bull markets roar ahead!” to be followed by “Bear markets spell disaster for investors” to be followed by “Emerging markets booming!” to be followed by “Emerging markets spectacular run is over!” to be followed with “Gold: the [...]

August 3, 2006 For the most part, you must ignore short-term market fluctuations because in these volatile markets they make absolutely no sense. For example, stock markets have short rallies (sometimes just a one-day sharp rise) whenever people interpret the U.S. Federal Reserve Chairman’s comments as less hawkish though most of the time since short [...]