Information and Knowledge

"We can have a lot of information without much knowledge, and we can have a lot of knowledge without much wisdom. In fact, sometimes too much data keeps us from seeing the big picture," said the famous money manager.

Another famous folk said, "We have two kinds of people who lose a lot of money: those who know nothing and those who know everything." And, "If you're not confused you don't understand what's going on."

From the top of the Chinese stock market to today....investors in China have lost over $748 billion dollars. Their stock market remains closed to IPO's. If you were running a family office in India, Malaysia or Indonesia...(and that is a lot of people)...you would probably be broke now from plunging stock markets, currencies and bond markets. Only physical gold holdings would have saved you.....

The "tapper tantrum" started in the spring has many unintended consequences....that are truly global....and we are just getting started!

In 1988 Japan's equity market was the largest in the world.....representing 44% of the world index....in just a few short years after it's 1990 collapse it was well below 10%. Today Japan's debt to GDP ratio is 247%...the Japanese spend 50% of all government tax revenue on debt service....their debt exceeds all that combined of Germany, France and the U.K.. What happens when they (if they) can't inflate away their debt?

Americas biggest problem (we think) is that far too many people can make more money on Welfare than working......and this government is encouraging even more to go on the dole. Welfare benefits are not taxed! The government now has 126 separate programs targeted to (buying votes) low income people.... A typical welfare package in NYC says the Cato Institute is worth $38,004. Is poverty the fastest growing subset of America today and why?

The most correct and famous deflationist with a 20 year call .....has now turned...he is looking for inflation and the long cycle to engage ...primary related to labor and the direct cost of labor now going to go higher.....as employers have to start paying up for employees who want to work and are qualified....A recent McKinsey study stated that only 43% of employers surveyed in nine countries believed they had a sufficient pool of skilled entry level workers to chose from.

Nine trillion dollars is sitting in cash right now earning zero......we believe it is ready to go to work.....

Incredibly the stock market continues to shrink. Stock buy backs and corporate take overs are retiring mass amounts of stock....just as household stock ownership maybe at an all time low...certainly a low in the past ten to twenty years......everyone is trapped in bonds and cash...thinking America will be energy independent......then why is oil at it's highs....why is gold rallying again? Why have investors pulled $307 billion from the stock market since 2007??

Sage advise from smart traders/ investors

-"Do not sell winners to buy losers"
-"Money is made by sitting, not trading"
-"It takes time to make money"
-"Buy right sit tight"
-"Don't give me timing, give me time"

Danny Boy seen here going for a morning boat ride.