Last week I attended the Institutional and Technical Analysis sessions at Martin Armstrong’s World Economic Conference in balmy Orlando, along with the Chief Investment Officer of one of our discretionary Portfolio Managers from Toronto. This trip was the most recent step of my 22 year project of bringing Marty’s precision models into how our Clients’ money is managed.
The three most important takeaways were: we’re on the right track, most people using the Socrates system as a standalone are still challenged, and Socrates is a very precise tool best used by skilled hands. Here’s a bullet-point summary:
We’re on the right track:
1) Marty’s major forecasts around currency allocation, gold, stocks and government bonds have been exceptionally accurate, so our Client portfolios are well –positioned, and ready for what lies ahead
2) Trump’s election does NOT change the bigger picture long-term trend directions, but he may help to steepen/accelerate a few of them, like:
- capital inflows to the $USD, stocks, etc. by virtue of proposed reductions in corporate taxation
- rising bond yields based on promises of massive infrastructure spending that will need to be financed with additional debt…pushing the U.S. closer to the crest of the slippery slope
3) The fact that Trump’s election and some of his early Cabinet appointments have shaken things up in virtually every major Establishment institution (EU, UN, MSM, the Fed, et al) probably means he’s headed in the right direction. In particular, the MSM snowflakes are proving why their trust ratings are bunched up down around their collective ankles
4) I met conference attendees from about 10 different countries, and a clear theme emerged: very successful non-mainstream people have become successful mostly because they understand that being non-mainstream is not “extreme.” The masses are – by definition – wrong at the extremes, but they create the trend in between. Being an independent thinker means that you are willing and able to “ride the herd without becoming one of them,” and you don’t really care at all about being popular
- Most people who are using Socrates as a standalone platform are having trouble:
1) Marty’s ECM and Socrates works very effectively when used properly, but it’s a new and different framework with its own language
2) Socrates does not prevent people from making foolish investment decisions based on their own biases and psychological weaknesses
3) The people who are using Socrates unsuccessfully have some common traits: insufficient diversification, undisciplined trade execution, hyper-active trading frequency, and very sloppy risk management
- Socrates is a very precise tool best used by skilled hands. As one of Marty’s team explained it, a wise parent wouldn’t give a sniper rifle to a child…because they can hurt themselves and others without the proper training and maturity. Specifically:
1) Socrates is NOT supposed to be used as a day-trading platform
2) Socrates should be used in tandem with an existing disciplined framework, including proper diversification, disciplined trade execution, moderate trading frequency, and with very disciplined risk management in place
3) Our managers will utilize Socrates to make sure Client portfolios:
- Are on the right side of every major currency move
- Are over-weighted in asset classes that have the best risk : reward potential
- Avoid major losses from high-risk asset classes, and possibly benefit by shorting these asset classes
- Click here to find out more about how this works http://integratedwealthmanagement.ca/special-video/
Our team is looking forward to hearing Marty again at Michael Campbell’s upcoming World Outlook Financial Conference, as well as sharing our insights with attendees during the Personal Finance Workshops.
Patience and discipline are accretive to your wealth, health and happiness – so focus on these.
Andrew H. Ruhland, CFP, CIM
Founder and President
Integrated Wealth Management Inc.