"There are two sorts of wealth-getting, as I have said; one is a part of household management, the other is retail trade: the former necessary and honorable, while that which consists in exchange is justly censured; for it is unnatural, and a mode by which men gain from one another. The most hated sort, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural object of it. For money was intended to be used in exchange, but not to increase at interest. And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of modes of getting wealth this is the most unnatural."
- Politics, Aristotle, 350 B.C.
"The Jew alone regards his race as superior to humanity, and looks forward not to its ultimate union with other races, but to its triumph over them all and to its final ascendancy under the leadership of a tribal Messiah."
- Goldwin Smith, The Jewish Question, October 1881
“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”
- President Woodrow Wilson 1916
“We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries.”
- David Rockefeller, Baden-Baden, Germany 1991
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
- Henry Ford
“The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.”
- Franklin D. Roosevelt, letter to Col. House, November 21, l933
“One of the least understood strategies of the world revolution now moving rapidly toward its goal is the use of mind control as a major means of obtaining the consent of the people who will be subjects of the New World Order.”
- The National Educator, K.M. Heaton
"We Jews, we, the destroyers, will remain the destroyers for ever. Nothing that you will do will meet our needs and demands. We will for ever destroy because we need a world of our own, a God-world, which it is not in your nature to build."
- Maurice Samuels, You Gentiles, 1924
“We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order.”
- David Rockefeller
“Today, America would be outraged if U.N. troops entered Los Angeles to restore order. Tomorrow they will be grateful! This is especially true if they were told that there were an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well-being granted to them by the World Government.”
- Dr. Henry Kissinger, Bilderberger Conference, Evians, France, 1991
"Never argue with stupid people. They will drag you down to their level and then beat you with experience." –Mark Twain
If you want to begin to understand and appreciate the work of Mike Stathis, from his market forecasts and securities analysis to his political and economic analysis, you will first need to learn how to think clearly. For many, this will be a cleansing process that could take quite a long time to complete depending on each individual.
The best way to begin to clear your mind is to first move forward with this series of steps:
1. GET RID OF YOUR TV SET (at least cancel your cable)
2. REFUSE TO USE YOUR PHONE TO TEXT
3. DO NOT USE A "SMART PHONE" (or at least do not use your phone to access the internet)
4. STAY AWAY FROM SOCIAL MEDIA
The cleansing process will take time but you can hasten the process by being proactive in exercising your mind.
You should also be aware of a very common behavior exhibited by humans who have been exposed to the various aspects of modern society. This behavior occurs when an individual overestimates his abilities and knowledge, while underestimating his weaknesses and lack of understanding. This behavior has been coined the "Dunning-Kruger Effect" after to sociologists who described it in a research publication. See here.
Many people today think they are virtual experts on every topic they regard with relevance. The reason for this illusory behavior is because these individuals typically allow themselves to become brainwashed by various media outlets. The more information these individuals obtain on these topics from the media, the more qualified they feel they are in these subjects, without realizing that the media is not a valid source with which to use for understanding something. The media always has bias and can never be relied on to represent the full truth.
A perfect example of the Dunning-Kruger Effect can be seen with many individuals who listen to talk radio shows. These shows are politically biased and consist of individuals who resemble used car salesmen more than intellectuals. These talking heads brainwash their audience with cherry-picked facts, misstatements and lies regarding relevant issues such as healthcare, immigration, Social Security, Medicaid, economics, science, and so forth. They also select guests for interview based on the agendas they wish to fulfill with their advertisers.
Once their audience has been indoctrinated by these propagandists, they feel qualified to discuss these topics on the same level as a real authority, without realizing that they obtained their understanding from individuals who are employed as professional liars and manipulators by the media. Another good example of the Dunning-Kruger Effect can be seen upon examination of political pundits, stock market and economic analysts on TV. They talk a good game because they are professional speakers. But once you examine their track record, it is clear that these individuals are largely wrong, but they have developed an inflated sense of expertise and knowledge on topics for which they continuously demonstrate their incompetence.
One of the most insightful analogies created to explain how things are often not what you see was Plato's Allegory of the Cave, from Book 7 of the Republic.
We highly recommend that you study this masterpiece in great detail so that you are better able to use logic and reason.Although we recommend you read and study The Allegory of the Cave, you can get a flavor for its meaning by watching the following video.
If you can learn how to think like a philosopher, specifically one of the great ancient Greek philosophers, it is highly unlikely that you will ever be fooled by con artists like those who make ridiculous and unfounded claims in order to pump gold and silver, the typical get-rich-quick or multi-level marketing (MLM) crowd.
“Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.”
King James Bible - Matthew 7:15
"It's easier to fool people than to convince them that they have been fooled." –Mark Twain
All Viewpoints Are Not Created Equal Just because something is published in print, online or aired in the broadcast media does not make it accurate. In fact, more often than not the larger the audience, the more likely the content is either inaccurate or slanted. The next time you read something about economics or investments, you should ask two main questions in order to assess the credibility of the source. Is the source biased in any way? That is, do they have any agendas which would provide any type of benefit accounting for their views? Most individuals either sell ads on their site or are dealers of precious metals or securities. That means their views are biased and cannot be relied upon.
Is your source is credible?
Most people associate credibility with name-recognition. But more often than not, name-recognition serves as a predictor of bias if not lack of credibility because the more a name is recognized, the more the individual has been plastered in the media. And every intelligent person knows that individuals who have been provided with media exposure because they are either naive or clueless. The media positions these types of individuals as “credible experts” in order to please its financial sponsors; Wall Street.
Instead of name-recognition or media celebrity status, you must determine whether your source has relevant experience on Wall Street as opposed to being self-taught. But this is just a basic hurdle that in itself by no means ensures the source is competent or credible. More important, always examine the track record of your source in depth, looking for accuracy and specific forecasts rather than open-ended statements. You must also look for timing since a broken clock is always right once a day. Finally, make sure they do not cherry-pick their best calls. Always examine their entire track record.
“Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.”
King James Bible - Matthew 7:15
The above questions require only slight modification for use in determining the credibility of sources that discuss other topics, such as politics, healthcare, etc.We have compiled the most extensive publication exposing hundreds of con men pertaining to the financial publishing and securities industry, although we also cover numerous con men in the media and other front groups since they are all associated in some way with each other.
There is perhaps no one else in the world capable of shedding the full light on these con men other than Mike Stathis. Mike has been studying the indistry for well over a decade. Alhough he has published numerous articles and videos addressing this dark side of the industry, the entire collection can be found in our ENCYCLOPEDIA of Bozos, Hacks, Snake Oil Salesmen and Faux Heroes.
At AVA Investment Analytics, we don't try to pump gold, silver or equities like many others you see because we are not promoters or marketers. And we do not receive any compensation whatsoever (including from ads) from our content. We provide individual investors, financial advisers, analysts and fund managers with world-class research, education and unique insight.
If you listen to the media, most likely it is costing you hundreds of thousands of dollars in lost money at minimum over the course of your lifetime. The deceit, lies and useless guidance from the financial media certainly is a large contributor of these losses to the sheep you pay attention.
But a good deal of lost wealth comes in the form of excessive consumerism which the media seeks to impose on its audience. You aren’t going to know that you’re being brainwashed or that you have lost $1 million or $2 million over your life time due to the media, but I can guarantee you that with rare exception this is the reality for those who are naïve enough to waste time on the media.
It gets worse. By listening to the media, you are likely to also suffer ill health effects through the lack of timely coverage of toxic prescription drugs or through the ridiculous medical shows, all of which are supportive of the medical-industrial complex.
And if you seek out the so-called "alternative media" you might make the mistake of relying on con men like Kevin Trudeau or Alex Jones. This could be a deadly decision. As bad as traditional media is, the so-called "alternative media" is even worse.
Why Does the Media Air Liars and Con Men?
The goal of the media is NOT to serve its audience because the audience does NOT pay the bills.
The goal of the media is to please its sponsors, or the companies that spend huge dollars buying ads, and in order for companies to justify these expenses, they need the media to represent their cause. The media does this by airing idiots and con men who mislead and confuse their audience.
By engaging in "journalistic fraud," the media steers its audience into the arms of its advertisers because the audience is now misled and confused, so in the case of the financial media, it seeks the assistance of Wall Street brokerage firms, mutual funds, insurance companies, precious metals dealers. This is why advertisers pay big money to be promoted in the financial media.
We see the same thing on a more obvious note in the so-called "alternative media," which is really a remanufactured version of the so-called "mainstream media." Do not be fooled. There is no such thing as the "alternative media."
In order to be considered "media" you must have content that has widespread channels of distribution. Thus, all "media" is widely distributed and the same powers that control the distribution of the so-called "mainstream media" also control the distribution of the so-called "alternative media."
The claim that there is an "alternative media" is merely a sales pitch designed to capture the audience that has since given up on the "mainstream media." The tactic is a very common one used by con men.
The same tactic is used by Washington to convince naive voters that there are meaningful differences between the nation's two political parties. In reality, both parties are essentially the same when it comes to issues that matter most (trade policy, healthcare and war). Anyone who tells you anything different simply isn't thinking straight.
On this site, we expose the lies and the liars in the media. We discuss and reveal the motives and track record of the media’s hand-selected charlatans with a focus on the financial media.
No one has generated a more accurate track record in the investment markets over the past several years than Mike Stathis. Yet, the financial media wants nothing to do with Stathis.
You aren't even going to hear him on the radio being interviewed.
You aren't going to see him mentioned on any websites either.
You won't read or hear of his remarkable track record unless you read about it on this website or read his books.
You should be wondering why this might be. Some of you already know the answer.
The media has banned Mike Stathis because the trick is to air clowns so that the audience will be steered into the hands of the media's financial sponsors - Wall Street and gold dealers.
And as for the radio shows and websites that either don't know about Stathis or don't care to hear what he has to say, the fact is that they are so stupid that they assume those who are plastered in the media are credible. And since they haven't seen or heard Stathis in the media, even if they come across him, they automatically assume he's a nobody in the investment world simply because he has no media exposure.
Well, if media exposure was a testament to knowledge, credibility and excellent track records, Peter Schiff's clients would be a lot happier when they looked at their account balance.
Others only care about pitching what’s deemed as the “hot” topic because this sells ads in terms of more site visits or reads. This is why you come across so many websites based on doom and conspiratorial horse shit run by con artists looking to cash in on ads.
We have donated countless hours and huge sums of money towards the pursuit of exposing the con men, lies and fraud. We continue this mission but we cannot continue it forever without your assistance.
We have been banned by virtually every media platform in the U.S and every website (mainly because we expose the truth about gold and silver).
We have been banned from use of email marketing providers.
The fact is that the Jewish Mafia has declared war on us because we have exposed the realities of the U.S. government, Wall Street and corporate America.
Note that we only began discussing the role of Jews in criminality by 2009, three years AFTER we had been black-listed by the media, so no one can say that our criticism of the Jewish Mafia has led to being black-listed, not that it would even be acceptable.
You can talk about the Italian Mafia, and Jewish Hollywood can make 100s of movies about it...
BUT YOU CANNOT TALK ABOUT THE JEWISH MAFIA.
We rely on you to help spread the word about us. Just remember this. We don’t have to do what we are doing.
We could do as everyone else and focus on making money. We are doing sacrificing everything because in this day and age, unfortunately, the truth is revolutionary. It is also critical in order to prevent the complete enslavement of world citizenry.
On Exposure: No one who has significant exposure can be trusted because those who are responsible for permitting such exposure have allowed it for a very good reason, and that reason does not serve your best interests.
On Spotting Frauds: Whenever you wish to know whether someone can be trusted, always remember this golden rule..."a man is judged by the company he keeps."
This is a very important rule to remember because con men almost always belong to the same network.
You will see the same con artists referencing each other, on blog rolls and so forth.
Opening Statement from the October 2015 Intelligent Investor
Originally published on October 7, 2015
Review of the Past 12 Months
First, let’s summarize our assessment and guidance from the past 12 months. Although we have remained bullish on the US stock market for several years, approximately one year ago we began advising investors to gradually raise cash selectively and on strength.
Our rational for this investment strategy was based on our belief that global risks were increasing at a worrisome pace. In short, we identified subtle signs which we believed would represent a new period of global economic risk and heightened volatility in the capital markets.
For several years we have been forecasting the various stock market corrections as a way for more active investors to add to their returns, all while emphasizing that the most important component of our market forecasts was to focus on how long we felt the bull market would persist.
Last year we concluded that the bull market was in its latter stages, but we pointed out that this did not necessarily mean the bull market would end in the upcoming year. After witnessing several significant events a few months ago, we concluded that the bull market was probably in its last stage. But again we explained it could last as long as another three years. We stressed the need to continue to assess valuation, risk, earnings and economic strength. Doing so would offer the best way to identify possible turning points in the capital markets.
A few months ago we began recommending investors raise even more cash by selective selling and selling on strength since we recently turned neutral on the stock market. This represented a distinct departure from our previous sentiment whereby during each market forecast we had always concluded that the bull market remained intact. Specifically, this newly formed neutral stance implied that we sensed a greater possibility that the bull market could end sooner rather than later. Over the next couple of months the stock market experienced a strong selloff, sending market indices below some important levels of technical support.
Volatility in the capital markets accelerated in June after China’s stock market bubble began to collapse. Investor sentiment nearly fell off a cliff once investors realized the economic problems in China were very real.
In August (August 23, 2015 audio supplement) we warned investors not to treat the market selloff like we had in the past because we felt that things were different this time. In short, we advised investors against buying into the selloff even though we mentioned that we believed the market would mount a sizable rally in coming weeks. The problem was that we felt there was also a high possibility that we were witnessing the early stages of a bear market.
Regardless whether or not this conclusion would turn out to be accurate did not matter. As we explained, our assessment of risks indicated that the prudent approach would be to assume a bear market had begun because the risks (downside potential) outweighed upside potential. In addition, we did not feel there was much if any upside relative to the periods when we advised raising cash (i.e. at market tops).
When conforming to this approach you should be willing to accept the possibility that the market may rise to much higher levels before we obtain sufficient clarity to signal market reentry. Giving up potential upside is often the price we pay for gaining more certainty. This is part of the risk management process.
Thus far, our assessment and recommendations have been spot on, but things can change rapidly during this period of high uncertainty. Although we will cover our market forecasts in detail in coming days, we have not altered our view from the past couple of months.
Bigger Picture, Risks & Implications
The dollar’s strength, combined with solid (although not impressive) economic performance in the US encouraged us to shift our focus on global macroeconomic analysis as a means by which to estimate risks on US economic growth and corporate earnings. As we have been discussing for some time now, the US is not likely to fall into recession on its own. In contrast, problems in China or the EU could spill over into the US causing a recession. This assumption has been what we have been basing the focus of our research on for more than three years.
By the end of this year, emerging market (EM) economies are likely to have recorded their fifth consecutive year of declining rates of economic growth. More important, weakness in EM economies has recently added a sizable level of risk to the global economy. Notably, private investment in EM economies has declined significantly over the past two years. In addition to demand-induced weakness in commodities pricing, we expect currency devaluation to continue for many nations, especially in Southeast Asia.
Moreover, we believe further weakness in China could possibly lead to a recession in the EU. Similar to the case with Japan, the EU has made some modest economic progress over the past two years, especially more recently due to quantitative easing (QE). However, similar to the case with Japan, the ability of QE to keep the EU out of deflation is fading. Overall, the UK remains the strongest economy in the Eurozone, followed by Spain (although Spain has posted better numbers). Much of Eastern Europe is relatively strong, while Western Europe has weakened.
Despite what “prominent” economists have stated, economic cycle theory cannot explain the turmoil endured by many advanced economies over the past several years. This assertion, if correct, solves the mystery as to why the various economic “solutions” in the US and EU have thus far have been a failure.
Much of the global economy continues to suffer from structural issues that have risen largely from misaligned trade policies and other economic manifestations of globalization. For instance, the structural problems embedded within the US and EU account for the chronically high unemployment rates seen in each of these economic giants (while the official unemployment rate in the US is 5.1%, we believe a more accurate figure to be around 7%). Unfortunately we do not believe the structural issues plaguing much of the advanced world will be resolved anytime soon.
Although officials have made some progress towards strengthening the financial system, the price paid to achieve this objective has been quite substantial and has come at the expense of savers. In early 2010 we concluded that the damage caused by the financial crisis would reduce economic growth in the US for an extended period. It should be apparent that global growth is likely to remain low for many years as well.
On September 18th the Federal Reserve announced its decision to keep interest rates unchanged in accord with our expectations. Notably, the Fed’s mention of weak inflation caused commodities and equities to sell off due to deflation fears. With little surprise, EM equities rallied after the Fed’s announcement, as it reduced capital outflows from the EMs.
Although we have repeatedly stressed that the timing of the first rate hike is not nearly as important as the pace of future rate hikes, we believe the Fed will make its first interest rate hike in nearly a decade in December of this year (we believe the best time would be in Q1 of 2016). This is a view we have held since late-2014, when virtually every economist, analyst and strategist was convinced the first hike would come by January or March 2015.
On Friday October 2, the BLS released disappointing employment data from September, with only 142,000 new jobs added versus around 200,000 expected. Jobs data from the previous three months were also revised downward. If upcoming data does not disappoint by much we believe rates will be raised in December.
We want to remind investors of the need to understand how our forecasts fit within their own investment style and strategy. As you can appreciate, there is a wide range of investors, each with different skill sets, skill levels, risk tolerances, investment objectives and horizons. Thus, one size never fits all. Accordingly, there will always be investors who want to be more aggressive and/or engage in short-term trading. Hopefully these investors realize that short-term trading is filled with much greater risk than active management.
On the other hand, there are periods when shorter-term activity has its advantages. Generally speaking, we do not feel that short-term trading offers many advantages at the present time. This is something for each investor to determine for themselves. Regardless, we want to remind more aggressive investors to be patient and selective when entering securities positions during this period of uncertainty.
There will also be some select opportunities for less active, more conservative investors. Generally speaking, we recommend only entering securities you feel comfortable committing investment capital to for a number of years. This will help you target strong companies with strong fundamentals and market leadership.
You should also (generally) only reenter those securities that were previously sold for a profit at higher levels and only if you intend to take profits when they come. Otherwise, you should not add new money to the market until we obtain more clarity. Hopefully investors raised a large amount of cash as we have been advising so they are less exposed to market volatility.
As we enter the start of Q3 earnings season, there are a few points to note.
- The stock and commodities markets are in the midst of a nice rally after suffering a severe selloff over the past month.
- The IMF, World Bank and OECD recently revised growth estimates for 2015 and 2016. Most revisions were down.
- Earnings estimates for Q3 indicate another quarter of declining growth.
- Despite the current rally in Energy, Materials and Industrials, these sectors remain bearish and are likely to continue with weakness down the road.
- The Internet Technology (IT) sector also remains weak, but certain companies are beginning to show some fundamental strength.
- Volatility in the Healthcare and Biopharmaceuticals sectors is likely to increase in 2016 due to the US presidential campaign.
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