In fnancial terms, investors and advi- sors have been told for decades, all this is scientifc: Post-Modern-Portfolio-The- ory, Markowitz (Nobel prize), Black-Sholes (Nobel prize), Monte-Carlo, the “blessings” of diversifcation and passive investing, then the recent ood of nice abbrevia- tions like TARP, ZIRP, MiFID, ESM, EFSM etc., or rather spots on the camouage of the century old Big Money lab trial of monopolist Central Banking, the biggest “fat” money experiment the world has seen ever . There’d been his- torical warnings from the beginning, of course, that something had been wrong with the fundamentals like Wil- son’s regret, the Great Depression, the Executive orders 6102 and 11110, then Fort Knox, De Gaulle’s claim for gold, the petrol dollar created, LTCM and the recent New Ec onomy of QE ! Let us stop here for a minute. QE Economy? A missi ng link to in vestments? Yes, once risk (the probability of losses) becomes relative to certain market players, and access to easy money is not equal across the markets, and intervention (of governments and central banks) becomes the rule not the exception, then all the nice investment theories above, part of the classic economy, do not help to shape a reasonable portfolio. Just remem- ber the discussions after the August market drop: the focus hasn’t been on what actually happened and especially not why, but about September Fed rate hike, QE4 (after 3 called Infnity…) and how the Chinese government intervenes to keep asset prices aoat (attempting to pre- vent bubbles from popping) . However, the real discussion went on outside the main- stream media: what Tobin’s Q-ratio says about the current stock market levels, how currency wars destabilize markets, what’s the impact of the GREAT CREDIT uNWINDING on the stock markets, the outlook for the (euro)dollar, SDR and TRUSTING N°8 – July/December 2015 121 Practical Investing / INVESTINGStock Market: The Biggest Bang for your buck ever! We live big times: Big money, Big debt, Big bubbles, Big govern- ment, Big regulation. Y ou get all the stories ready: the world has to be saved, some (usu- ally the banks) bailed out to prevent collapse at any price, others to be punished at the same time, these are indebted governments which actually means the sorvereign, so in the end ALL the bills go to the taxpayer, i.e. the normal citizen. This is the new Social Contract of modern times. Dr. Zoltan Luttenberger
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Rights to save legitimate wealth, thebase for a free market, from govern-
mental excesses.
So, you’ve been actually getting the
BIGGEST BANG for your buck in the
stock markets EVER! Good news isn’t
it? Whether it is a TOP or a POP, let us
wait for.
Zoltan Luttenberger
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TRUSTING N°8 – July/December 2015 123
Practical Investing / INVESTING
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Zoltan Luttenberger PhD has been working in the FS industry since1989 as (independent) fnancial plan-ner, management and IT consultant.www.linkedin.com/in/luttenberger
Zoltan Luttenberger PhD is a
Founding Partner of the “EuropeanTransition Program in FinancialAdvice™”
Zoltan Luttenberger PhD is Memberof the Board (in charge of Interna-tional Relations) and the FoundingChairman of the Hungarian Associa-tion of Qualifed Financial Planners.www.HAQFP.org
He is also a member of the CIFA’sExecutive Committee.