Anyone can achieve a state of financial wealth if they are willing to make the appropriate sacrifices. What kind of sacrifices are appropriate? Working hard, saving, working smart, learning proper investment techniques, understanding accounting systems, learning to discern between truth and ideology, developing math skills, reading, developing courage, etc. Devoting time to money is possibly the most important aspect. Being smart with your time is probably just as important. A money devotee may be found reading something like "Andrew Mellon" or "Modern Money Mechanics." You should be familiar with the thoughts of men like Adam Smith, Milton Friedman, Karl Marx, Benjamin Franklin and J.P. Morgan.

 You should hold a higher understanding of the meaning of terms like capitalism, finance, economy, investment, speculation, yield, dividend, insurance, contract, etc. It is much better to learn these terms for yourself instead of learning about them from others. Unfortunately, there is a wealth of mis and dis-information available on these subjects. Wikipedia provides much valuable information although some of the Wiki information can be incorrect or misleading. That is why it is so important to have an effective method to help you discern between reality and false ideology. Everything needs to be double-checked and confirmed. Never use a single source.  This is a critical key and is also one of the most difficult of all achievements. As humans, we are inherently fallible. In fact, we are surrounded by fallacies, but one can minimize this facet as opposed to developing it or enhancing it with a failed ideological perspective.

 

Notes of the Confederacy

 

Moneygasm

The following incredible photos come from a Southern California estate sale that was listed on Craigslist today. This is the most stunning private money collection I have ever seen (except for professional dealers.) The following photos are just a small part of the collection.

 

If  you do a Google image search of "money," this is the first image that you will see. It comes from Forbes and includes an advertisement.

90% of options traders lose money. Over 100 years ago, editor Charles Dow publicly called for an end to the practice in the Wall Street Journal.






 

Yield = Most recent full year dividend
                    Current share price

As share prices increase, yields decline. As yields increase, share price decrease. Yield is an important measurement of risk. Higher yields often mean higher risks. Stock market crashes or large negative price corrections tend to take place when yields on the DJI reach historical low levels (around 2%.). When yields start to move into the 7% -9% range, it tends to indicate that share prices will start moving up, pushing down the yield. History has shown that investors and speculators tend to flock to higher dividend paying stocks. The increased demand pushes up the price, gradually lowering the yield to more sustainable levels..

The stock market is so immense and complicated that nobody knows why it goes up and down, yet the television pundits will daily tell you that it is because of Spain or the fiscal cliff or Citigroup's earning report or some other thing that "makes sense." The truth is they really don't know, but they create a convincing claim to the contrary.

Don't get suckered by fools, salesmen or liars. The majority of investors are merely speculators. There is one very important fact that applies to the value of the stock market. As shown by the graph below, the general level of Dow Jones stock prices goes up over time. This graph goes back to July of 1885 and continues to 2112. 127 sum years of record. Buy and hold is a good strategy as long as you are willing to wait. It doesn't mean the company you invest in won't go bankrupt or that your rate of return will always be high, but if you pick a good, high quality company like Chevron, Walmart, McDonald's, IBM, etc., and are willing to hold it for a long time, you are virtually assured a profit.

Thomas Watson ran for President in 1904 as a candidate for the Populist Party. The Populist Party was a short lived party that was created in 1876 by farmers protesting low agriculture prices. The Populists believed that the political system had fallen under the control of the bankers and rich businessmen and acted against the interests of ordinary people. Famous advocates like William Harvey and William Bryant Jennings sought financial reform and advocated to repeal the 1873 Congressional Act that demonitized silver. Despite much popular support, the populists were unable to compete as a third party and their influence began to decline in the 30s. Roosevelt's New Deal spelled the end of the Populist Party.