Mad Money Machine

MMM-095: Being Clairvoyant

Macbook Tablet? Guru knows recession is here. Jekyll Island. Outliner tool. What is the year-to-year market correlation? Passive government beats active government. Rock Band. Half Life 2.

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The Mad Money Machine is proud to be sponsored by Index Funds Advisors at ifa.com.   

Topics in this week’s show include:

“The Clairvoyant Society of London will not meet Tuesday due to unforeseen circumstances.”

– An advertisement in the Financial Times, as quoted in A Random Walk Down Wall Street, 9th Edition, by Burton Malkiel

• Check out all the new stuff at IFA.com.
• For example, this chart showing the correlation of one year’s stock returns versus its previous year.
• Our Guru “knows” that a recession is coming, so sell.
• Yomomma2000 says I need to come out of my dark room and realize what I’ve done (I’ve proved the wisdom of the crowds in the stock market in show 94).
• Elaine says read The Creature from Jekyll Island. Here’s a talk that G. Edward Griffin gave. It is definitely worth a listen. Any counter-story to this out there? Why is the Federal Reserve Banking System GOOD?

Amazon.com: The Creature from Jekyll Island ISBN: 0912986395 ISBN-13: 9780912986395

• I like the idea of issuing certificates of ownership for shares in GLD and allowing people to trade these like MONEY.
• Tool: I love outliner programs like Natara Bonsai. Anyone know of a full-featured one that is web-enabled? I’d even pay Federal Reserve Points for it!
• Jim asks whether this would be a good time to invest in IFA Index Portfolio 100.
• Jim also asks how one might create a Index Portfolio 120 or 150 or 200. One could, but I doubt anyone has the stomach to accept the downside risk. Go to IFA.com and at the bottom of the page take a look at the Risk Reward Optimization chart. In the menu, click on item 10. Then click on Portfolio 100 and click on 1 Year.

• The MacBook Air was announced. OK, so no Apple Tablet. But I guess you really do need a keyboard after all. I’d rather pay $899 than $1799 though.
• I’ve been playing Rock Band and also Half Life 2 from the Orange Box.
• Keith recommended that I talk about any long term case studies of people who invested with Index Funds Advisors. IFA now has a sample client’s return that is from an actual client. (Please use Internet Explorer) The amazing thing to note is THEIR CLIENT’S RESULT WAS EXACTLY THE SAME AS THE PORTFOLIO 70’S BENCHMARK.
• Dennis wants to know how to get started in investing in an index fund portfolio. For continued guidance, I recommend reading the Diehards forum.
• Just like passive investing beats active investing, so too does passive government beat active government. Let the free markets do the work, please! We don’t need a temporary economic stimulus package. We need permanent government downsizing.
• I take a raw look a the results of the Lazy Portfolios for 2007. More later — stay subscribed.

Music from music.podshow.com:
ALTA PLAZA – XRAY DOGS
The Pop Culture – DJ Top Shelf
Runaway Train – Under Feather

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