“Since you asked, my thoughts are that a massive chunk of the growth, innovation, construction and therefore, earnings that we are seeing in the world today is artificially stimulated and has been for decades. We are 40 years into the current currency paradigm that started in earnest when Nixon closed the gold window in ‘71. The 2008 meltdown was the inevitable consequence of easy money and should have been the end game with a painful new start. By borrowing and printing and nationalizing, we’ve pushed it off to the future probably to come back again, maybe worse next time.

The causes of the crash identified in the film ‘Inside Job’ were not causes, they were symptoms. When you combine human nature with fractional reserve banking, the boundaries and leverage always get pushed because that’s what people do. The particulars of CDOs and mortgage lending and securitization are just the technology that was used this time around.

The only difference between Larry Summers (perpetrator) and your average Joe (victim) who got burned in housing or lost his job on the line at GM is talent and opportunity, not character. If their positions were reversed, each would have fulfilled the other’s role without missing a beat.

I wrote extensively about these problems starting in 2001. I wrote a huge report in late 2004 about what was coming (attached). You probably don’t have time to read it but it’s a good insight into where my mind has been for years. The problem 10 years ago was I had no effective way to deal with it in client’s portfolios. Now I do and I thank God every day that Dave Sanderson introduced us to you 3 ½ years ago.”

Subscriber Only Content: http://lloydwilliamsinc.com/subscriber/LiokossisLetter2005SpecialReport.pdf

“It is a good chart showing earnings although P/E ratios contracting/expanding make the markets more unpredictable than the E. Look at Walmart over the last 10 years – E is up, P barely moved.

I found the above chart you sent more interesting. If a similar chart could be produced looking at sectors (lg, mid, small caps), countries, commodities and currencies, all compared to our base assumption of TSX returns, we would have a great story to tell.

Another idea I need to get my head around is the trending periods of the leading ETFs. Have you seem any studies on persistency periods? IE- Once a category starts to out-perform; does it tend to persist for days, months, quarters, years? My guess would be country outperformance could persist for years, Cap sizes for many quarters, value/growth for years, commodities and currencies more on monthly/quarterly trend. Maybe once the back testing has been completed, we could look at holding periods to answer these questions. “

…the quote is originally attibuted to Napoleon Hill

Ed can be reached here: coachimago@aol.com

Sandra Mews Dundee Wealth, Sudbury Ontario smews@vianet.ca

Jason and I were discussing about making a operation manual 2 days prior to this training! that is a met need. This is a gift!

Lloyd, this seminar was better than I expected. Sorry, Jason and I had to take off earlier and we did not get the chance to say goodbye since everybody had questions for you during the break. I plan to help Jason being succesful at what he is doing because I believe he has what it takes to attain his goal. Without your seminar, we would be like lost dogs. LOL. You help us so much. Now it is up to us to make our homework. I learned that listening well is an ART. I look foward to give you update on Jason s progress. You are a excellent motivator. It’s always exciting to meet passionate people in life! Many thanks Sylvie and Jason

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James