Gold and Silver Updates

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“The financial system and the inventory market are two various things.”

–Milton Friedman (“Maxims of Wall Road,” p. 157)

After Milton Friedman gained the Nobel Prize in Economics in 1976, he all of a sudden loved fame and fortune. He was consistently in demand and appeared on a number of in style TV reveals, comparable to Phil Donahue.

He as soon as appeared on Dinah Shore’s speak present alongside journalist Shana Alexander and comic Phyllis Diller.

These had been the Jimmy Carter years, and Dinah Shore requested him how a median investor may shield his cash in a time of rising inflation. Friedman’s recommendation was succinct: “Spend it.”

That TV look introduced him extra mail than he’d ever acquired.

The TV sequence “Free to Select” made Friedman a good greater hit in 1980. He instructed the producer, Bob Chitester, “Persons are calling me from everywhere in the world asking me to take a position their cash.” The Friedmans needed to change their telephone quantity and relist it below Rose’s maiden title.

I can see why Milton Friedman was uncomfortable. Being an knowledgeable on the financial system isn’t the identical as being a monetary advisor. He earned a Ph.D. in economics, not finance — cousins within the educational realm, however distant cousins in actual life.

Telling buyers to spend their financial savings was poor recommendation, even throughout instances of inflation. Friedman himself didn’t comply with his personal counsel. He invested his Nobel Prize funds in actual property. He and his spouse purchased a wonderful residence overlooking San Francisco Bay. (See picture)

Your editor assembly with Rose and Milton Friedman of their San Francisco residence. 

Throughout the inflationary seventies, there have been loads of non-traditional inflation hedges to put money into, comparable to gold and silver, artwork and collectibles and actual property.

Granted, the normal markets in shares and bonds did poorly through the Nineteen Seventies, together with blue-chip Dow shares, the so-called Nifty Fifty, Treasury and authorities bonds and glued revenue. All failed buyers through the Nineteen Seventies.

However small-cap progress shares did very properly after the 1973-74 bear market. The Nasdaq rose 60% from 1974 to 1980.

Don’t get me fallacious. I’m a giant fan of Milton Friedman as an economist, and wrote a glowing chapter referred to as “Milton’s Paradise,” in my historical past of the good financial thinkers, “The Making of Trendy Economics.” He endorsed my e book with this intelligent line: “All histories of economics are BS — earlier than Skousen. His e book is full of life, correct, and a positive bestseller.” (To order, go to www.skousenbooks.com).

We had been good mates, and I used to be most likely the final particular person to have lunch with Milton at his favourite Italian restaurant earlier than he died in late 2006.

However each man should know his limitations, and Friedman was not comfy giving private funding recommendation.

Like Friedman, I’ve a Ph. D. in economics, however I specialise in making use of economics to the true world of excessive finance and basic funding recommendation. Wall Road investing and Foremost Road economics will not be the identical.

Friedman’s Favourite Poem

Milton Friedman’s favourite poem was written 100 years in the past, in 1920, by Rudyard Kipling. It’s entitled, “Gods of the Copybook Headings.”

The poem refers back to the proverbs or maxims usually drawn from sermons, almanacs and scriptures extolling advantage and knowledge that had been printed on the high of the pages of notebooks utilized by British faculty kids.

The scholars needed to copy the maxims repeatedly, by hand, down the web page. The train served as a type of ethical training and penmanship.

Kipling’s first stanza reads:

As I cross by way of my incarnations in all ages and race, 

I make my correct prostrations to the Gods of the Market Place. 

Peering by way of reverent fingers I watch them flourish and fall, 

And the Gods of the Copybook Headings, I discover, outlast all of them.

Kipling (and Friedman) bemoaned the truth that we not educate aphorisms to college students or adults.

However Kipling and Friedman can be comfortable to know that the age-old knowledge and timeless truths of the “copybook headings” are alive and properly on Wall Road.

Stockbrokers, cash managers and old-timers are well-known for quoting monetary adages, historic proverbs and immortal poems comparable to “Promote in Could and go away and don’t come again ’til Labor Day,” or “No one is extra bearish than a sold-out bull.”

Within the early Nineteen Eighties, I began gathering these timeless sayings, and in 2011, I printed the primary version in a good-looking quantity in darkish inexperienced leather-based and gold lettering with a ribbon.

“The Maxims of Wall Road” has develop into a bestseller, having offered over 35,000 copies by way of seven editions.

Now the Tenth-anniversary version isn’t off the press, prepared for the vacations.

“Maxims” is the Closest Factor to Wall Road Scripture

The “Maxims” incorporates:

Over 800 adages by such notables as Warren Buffett (“The inventory market can go from inexperienced to pink with out stopping at yellow”)… J. P. Morgan (“Troubled waters make for good fishing”)… Humphrey Neill (“The general public is correct through the developments however fallacious at each ends”)… Richard Russell (“In a bear market, the winner is he who loses the least”)… and Steve Forbes (“Everyone seems to be a disciplined, long-term investor… till the market goes down!”).

Previous Timer’s tales just like the “buying and selling sardines”… the place are the shopper’s yachts?… the gold bugs… commodity merchants… The origin of “blue sky”…

Well-known strains from Baron Rothschild, Ben Franklin, John D. Rockefeller, Joe Kennedy, J. P. Morgan, Bernard Baruch, John Templeton, Jesse Livermore, John Maynard Keynes and Ben Graham

All quotations are divided into classes, with sage recommendation on beating the market, diversification vs. focus, worth vs. progress, bulls vs. bears… black swan occasions… day merchants… doomsayers and Cassandras… plungers and the peacocks… sizzling suggestions and insider info… dropping cash and missed alternatives… Wall Road vs. Foremost Road… chartists vs. fundamentalists… leverage and debt… privateness and authorities… taxes and tax havens… inspiring “Wealthy Man’s Pearls of Knowledge.”

Offering A Shortcut to Monetary Knowledge

The e book has been endorsed by Warren Buffett, Jack Bogle, Dennis Gartman, Barron’s and plenty of others.

Alex Inexperienced, chief funding strategist of the Oxford Membership, wrote the next final month:

“Wouldn’t it’s nice if somebody collected the wisest ideas of the world’s biggest buyers, males like Jesse Livermore, Baron Rothschild, J.P. Morgan, Benjamin Graham, Warren Buffett, Peter Lynch John Templeton and others?

“As a matter of reality, somebody has, my good good friend and colleague Dr. Mark Skousen. His e book ‘The Maxims of Wall Road’ is a crash course in the right way to survive and revenue in at the moment’s risky markets.

“A school economics professor, founding father of FreedomFest and bestselling creator, Mark has spent greater than 4 many years studying, writing, instructing and lecturing about monetary markets. Alongside the way in which, he has collected a treasure trove of proverbs, slogans, tales and juicy quotes.

“I discovered myself chuckling (and infrequently sighing) after I first learn this e book. And I nonetheless consult with it repeatedly. Over my 35-year profession, I discovered a lot of this funding knowledge by trial and error. Thankfully, you don’t must. ‘The Maxims of Wall Road’ is a pithy and indispensable information.”

New Tenth-Anniversary Version Launched in Time for the Holidays

Final week my grandson, Luke, and I drove to Chicago to choose up the brand new Tenth-anniversary version of “The Maxims of Wall Road,” sizzling off the press. Then we drove to a suburb of Cleveland and delivered 175 copies to Carver Monetary Providers, whose president, Randy Carver, is a giant fan. He’s a dealer with Raymond James. Randy plans to provide them to his shoppers as a vacation reward.

Kelley Drumm, advertising director at Carver Monetary Providers, and I like the brand new 10th-anniversary version of “Maxims”

I can’t ship each copy in particular person, however I shall be mailing out copies this week and subsequent, in time for Christmas and the vacations.

In truth, there’s nonetheless time to order your individual copies — for your self and your investor mates, neighbors, shoppers and favourite brokers. Order as many copies as you desire to — I provide a particular low cost while you order a couple of copy — half off!

The brand new version is particular — it’s 282 pages. I’ve added 200 quotes because the first version got here out in 2011.

Cheaper by the Dozen!

I’ve saved the identical low worth. The brand new version retails for $24.95, however should you purchase from Skousen Books, the primary copy is simply $20, and all further copies are solely $10 every. For those who order a complete field of 32 copies, the worth is simply $300, lower than $10 every.

As Hetty Inexperienced, America’s first feminine millionaire, stated, “After I see one thing low-cost, I purchase a whole lot of it.”

To order, go to www.skousenbooks.com.

I quantity and autograph each copy and pay the postage if mailed in the US (delivery to Canada or different international locations requires further postage). When you’ve got any particular inscriptions, please e-mail Ned at skousenpub@gmail.com.

We ship day by day. Order your autographed copy at the moment! Go to www.skousenbooks.com.

And let me know if you’d like a particular inscription as a present to others. I’ll be glad to oblige.

Right here’s to a really merry Christmas and a contented affluent New 12 months.

Good investing, AEIOU

You Nailed it!

A Tribute to Walter Williams, My Type of Instructor

Walter Williams was my form of economist — witty, clever, an excellent trainer and spot-on when it got here to most points. He by no means retired. In truth, he died of a coronary heart assault at age 84 proper after instructing his class at George Mason College.

He was a professor at George Mason College for 40 years, and the creator of a dozen books, together with “The State In opposition to Blacks” (1982) and “South Africa’s Warfare In opposition to Capitalism” (1989), his case towards apartheid.

His outstanding story is instructed in his autobiography, “Up from the Tasks.” He grew up poor within the housing tasks of Philadelphia, fought racism when he joined the U.S. Military, was as soon as a one-time cab driver and finally earned a doctorate in economics from the College of California, Los Angeles.

Right here’s a brief tribute from Cause journal: https://www.youtube.com/watch?v=GwpNqQn8Lyo.

We tried to get Walter to talk at FreedomFest in Vegas, however after 9/11, he merely refused to fly wherever. He stated getting patted down by the TSA reminded him an excessive amount of of the Jim Crow days when the police would pat down blacks.

We’re planning to dedicate a room in honor of Walter at subsequent 12 months’s FreedomFest.

Listed below are some nice quotes:

“Previous to capitalism, the way in which folks amassed nice wealth was by looting, plundering and enslaving their fellow man. Capitalism made it attainable to develop into rich by serving your fellow man.”

Right here’s Williams’ roadmap out of poverty: “Full highschool; get a job, any form of a job; get married earlier than having kids; and be a law-abiding citizen. Amongst each black and white Individuals so described, the poverty fee is within the single digits.”

“The intact black household survived the evils of slavery, segregation, and Jim Crow legal guidelines, however it couldn’t survive the welfare state.”

My solely beef with Walter was his speak on faculty campuses, “I Love Greed,” the place he used the time period “greed,” as a substitute of “self-interest” to advertise free-market economics and commerce. That set again the liberty motion, which turned off younger folks particularly. Sorry, Walter, however greed isn’t a advantage. Grasping capitalists benefit from folks in commerce, ensuing usually in a “win-lose” state of affairs. Grasping buyers usually lose cash as a result of they get grasping on the high of the market. Greed landed Bernie Madoff in jail.

Walter wanted to learn John Mackey’s e book “Aware Capitalism”!

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