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Investors411 is a 100% free site

that has out performed the S&P 500 for the past 7 years

Investors 411 primary focus is investments and trends that impact your life. If our site helps you or you profit from our advice we urge you to make a donation to your favorite charity.

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Overview

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Over the last 7 years Invesors411

has done significantly better

than the benchmark S&P 500.



Why?

(Intro written early 2009 )


The Lesson of HistorySocieties and the world develop super elites, or a ruling class that has two ways to survive – They either suppress/crush dissent or they share the wealth. It’s obvious what the better outcome is.

Investors411 recognizes Significant Mega Trends, their relationship to word wide equities and invested accordingly. There are, of course other major mega trends, but these and the “Great Recession” of 2008, are leading factors.

The MegaTrends

Globalization - Globalization has many sides (good,bad and ugly). However as an economic trend it is perhaps best described by NYT columnist and author Tom Friedman His book The Word is Flat demonstrates the growing economic connections around the world. There are, of course, some obvious spikes in the “Flat World” Globalization is a key force that allow some countries and economic sectors to develop faster than others.

Peak OilPeak Oil is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline. One of the best web sites/blogs that daily goes over the implications of Peak Oil is The Oil Drum. Without energy nothing moves and commerce stops. The prospect of no further low cost oil fueled growth will dramatically impact everything from wars to economics.

Spread the WealthSocieties or countries that have an expanding middle class grow faster than countries where simply the rich get richer. A major reason for this is that the money the working class spends gets turned around faster economically and upper class money does not “trickle down” in significant ways. Income inequality within a country/society has caused great harm – Dr, John Wilkinson work is groundbreaking because it measures the results of income inequality.

Technology Dramatically effects our ability as a species to alter our environment. It often makes economic based goods cheaper and more abundant to segments of society or the world. Like all megatrends technology, depending on how its used – it has both an upside and a downside.

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“The Great Recession” - The 2008 collapse of the housing  and financial crisis was caused the deregulation of the financial industry, and the gutting & corruption of regulators. This began in the USA, but spread through  out the world. It led to white collar crooks and shadow financials gaining vast sums of  money/profits by over leveraging. The gains were made primarily by the super elite and the costs were paid primarily by working class people.

The longer term and more important systemic problem is the transfer of wealth in the USA away from the working class to a growing wealthy oligarchy.  (Longer “Deer in the Headlights” explanation below)

Investors411 uses these mega trends to identify sectors and countries to invest in

Deer in the Headlights

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Stop staring at the headlights and Get out of the road

The reason Investors411 brings you news in 2009 like “the worlds financial system has effectively disintegrated” Roubini, Volker  Sorosis so YOU can stop standing like a deer in the headlights and do something to protect your economic well being. –

Obviously, the Laissez-Faire capitalism or “free market capitalism under the previous four Presidents has spectacularly failed. The tech, housing, and credit bubbles have all burst under the absolutism of “free market capitalism” and something better has to arise from the ashes.

Over the last decades we have so decimated and  tainted regulatory laws and the staffs of regulatory agencies from the SEC to the national government that any solution to our fiscal problems,  becomes, at best, very very difficult.

Washington is over run with lobbyists from the shadow banks and multi national corporations. Many are too big to fail corporations that dominate the media and politicians of both parties.

The Real Structural Problem

What we watched over the last 8 years is an orgy of economic bubbles bursting because of unregulated greed of our capitalist system. Yes its time to restore balance, but first you have to recognize the long term structural problems.

Researchers Picketty and Saez on where the money’s gone in our country over the last 40 years. Quote from economist Robert Reich on their research -

since the late 1970s, a greater and greater share of national income has gone to people at the top of the earnings ladder. As late as 1976, the richest 1 percent of the country took home about 9 percent of the total national income. By 2006, they were pocketing more than 20 percent. But the rich don’t spend as much of their income as the middle class and the poor do — after all, being rich means that you already have most of what you need. That’s why the concentration of income at the top can lead to a big shortfall in overall demand and send the economy into a tailspin. (It’s not coincidental that 1928 was the last time that the top 1 percent took home more than 20 percent of the nation’s income.)

What Made us Strong

Back after WW 2 President Eisenhower led a major stimulus program that transformed Americans. He continued FDR’s New Deal programs, He massively expanded Health Education and Welfare departments, created a Interstate highway system, developed a GI bill to help returning vets own homes, and  the civil rights movement began.  Economically, only one member of a household usually worked, and America whose infrastructure was not devastated by war flourished.

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The Decline

What happened in the USA is that the rich grew richer and the working class lost in its struggle to catch up and stay solvent.  Wages got hit in the late 70’s “by a double whammy of globalization and technology.” (Robert Reich quote) Women went to work to keep up with the Jones. But this was not enough.

In the 80’s to fix an over reliance on welfare we changed to a tax and government system that rewarded the wealthy and began to strip away the very regulations that were put in place to prevent the Great Depression.

Another excellent source of information with statistics on this is a Jan. 2011 Investment newsletter by mega investor Jeremy Grantham -

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The Fall

Both members of families now struggled and were encouraged to go further into debt (credit card, college, mortgages etc) just to hold on. The rich got richer and the working class simply  fell further into debt. The bubble burst with the fall of housing prices and the over leveraged greed of the wealthy financial companies. Debt exploded.

Therefore the current over leveraged financial meltdown is deeply connected to our long term structural wealth inequity problem.

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Solutions

(below updated 7/4/11)

We have created a fundamentally flawed economy with a huge gap between the rich and the working classes.  We need to be fundamentally and structurally set back on the correct path where wealth is more evenly distributed. The financial oligarchy that set up the “shadow banking system” is  a very powerful entity that holds sway over the majority of politicians in the USA. The global financial hole we’ve dug is very deep.

Economist and former Labor Sec. Robert Reich concludes an editorial on this. – “We have failed to address — widening inequality, sagging median incomes, a broken healthcare system, crumbling infrastructure and global warming — are that much larger now, making the current crisis all the worse.”

When any reform or attempt at law and justice, is undertaken, the uber wealth class/shadow financiers responds with threats of crashing the economy. Nothing of substance gets changed. They can do this because both political parties are either owned or weak kneed. As other countries move toward greater democracy the USA is moving into a kleptocracy. (below is from Charles Hugh Smith)

  • Most Republicans have almost no and Democrats little significant interest in limiting the banking/financial cartel.
  • Our stock markets are dominated by insiders
  • The rule of law in the U.S. has been divided into two branches: one  for the financial Elites/corporate cartels, and one for the rest of us mere citizens..

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Excellent editorials

on Systemic

economic and financial

solutions

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