a different view on investing



Much of The Intuitive Investor newsletter is a hard look at current events in the financial world, and analyses them in the light of its dream-based strategy. This is the brain coming to assist the intuition - a cold, intellectual, common sense look at the way things are going. Remember, though, that this is being done from a very different angle to that of most financial analysts: thanks to the II's dad and his dreams, we know what is likely to come about, and with that knowledge we can set the brain to work.

The newsletter contains some thirty thoughtful and provocative pages of news and commentary on current market conditions in the USA. It has chosen to concentrate on the US and its markets because the US economy is so much larger than any other, and what happens there will inevitably affect economies and securities markets elsewhere in the world.

One conclusion we drew way back in 2003 is that the US economy is heading for not just recession but a mammoth, 1930s-style depression.

The clearest indication of trouble ahead was given by the US house market bubble while it was still in progress. Back in 2005, we went on holiday to Key Biscayne near Miami, and it was apparent immediately that the market there was in a state of euphoric mania. We had already warned our readers of the danger a collapse in the US house market posed to the economy as a whole, and we now repeated that message, but in general it was as if most investors were blind to what was happening.

Because the US is the consumer of last resort - it buys the largest part of the excess baubles, bangles and beads the rest of the world makes - any recession there is going to affect all Asia (including the Middle East) and Europe as well.

But even though its focus is the USA, its strategy can be applied throughout the western world, and it makes little difference whether its subscribers reside in the US, UK, Europe, or Asia. All will enjoy the same benefit from The Intuitive Investor.

Its object is not to tip shares for its subscribers, but rather to persuade them to employ their own intuition in planning their investment strategy. The Intuitive Investor encourages its readers to take a hands-on approach to investment, and aids those who believe they should take responsibility for what they do with their capital. Would you dare to go to a car dealer, and then leave the choice of your next car to him? Would you consider visiting a real estate agent, and letting her decide what will be your next home? Of course not! Yet, the same people who make up their own minds on cars and houses are often willing to pay a man in a suit a lot of money to invest their cash for them.

The Intuitive Investor will help you build a framework for your strategy and outlook so that you can play a more active role on your investment decisions; as opposed to leaving them solely to your broker's or advisor's discretion. At the same time, we provide some thoughts and tips as to how to develop your own intuition.

We don't expect you to accept all this. It's highly unorthodox, for sure. But orthodoxy of itself can get you nowhere, and the proof is in the pricing: look again at the chart in the section Model Portfolio and tell us how our performance could possibly be described as anything other than good.

Last Updated: October 6th, 2008 - Copyright 2002-2011