Project Management and Investments
RSS icon Email icon Home icon
  • How to become very successful

    Posted on August 12th, 2009 Peter Tjernström No comments

    If you’re a very successful person, you’d probably like to think of yourself as a gifted but self-made and hard-working individual. In his latest book Outliers, Malcom Gladwell takes a slightly different view and describes, by looking at e.g. differences in circumstances and timing, how social factors interact with sufficiently intelligent, devoted and hard-working people to make them exceptional, to make them the outliers.

    UK cover version

    UK cover version

    In a nation where the idea of the American Dream still prevails, this book has ignited some heated discussions. It often seems like readers have interpreted Gladwell as giving the social factors too much weight. My interpretation of Gladwell’s point of view is that while there are many who possess the intellect, skills (not always the ones we think of) and devotion to become true outliers, not everyone can become one. These are necessary but not sufficient criteria. The circumstances and timing also have to be such that the skill set and devotion pays off. A person with Bill Gates’ skills and build wouldn’t have particularly successful if born in a medieval village in Scandinavia when the Viking leaders were raiding and fighting for power.

    Read the book, it’s full of insight and can alter your view of the world. Here are some comments from Malcom Gladwell himslef and from others.

    Rate this article! 4.00 out of 5
  • Peter Schiff: After two years of rally, the deluge of hyperinflation

    Posted on May 21st, 2009 Peter Tjernström 2 comments

    All professional investors are asking themselves the same question right now: “Is the recent surge on the stock markets world wide just a bear market rally or does it mark the end of the financial crisis?”.

    According to Peter Schiff, the financial crisis is far from over. In fact, the worst is yet to come, but first everyone will party on President Obama’s stimulus for two years.

    Peter Schiff, President & Chief Global Strategist of Euro Pacific Capital, is according to himself one of the few non-biased investment advisors to have correctly called the current bear market in U.S. dollar denominated assets before it began.

    Peter Schiff

    Peter Schiff

    As a result of his accurate forecasts on the U.S. stock market, economy, real estate, the mortgage meltdown, credit crunch, subprime debacle, commodities, gold and the dollar, he is becoming increasingly more renowned in the U.S. and world wide. His best selling book, “Crash Proof: How to Profit from the Coming Economic Collapse”, was published by Wiley & Sons in February of 2007.

    It shall also be said that it seems like Mr Schiff has been unable to turn these predictions into investment returns for his clients. Allegedly, his strategy also caused huge losses in 2008. It is difficult to understand why he, if certain of the crash, didn’t centre his strategy around shorting U.S. stocks.

    In a recently published article, Mr Schiff argues that the Bernanke/Obama massive stimulus will buy us a two year rush before the hangover sets in. According to him, we were already suffering from the doping injected by Greenspan/Bush in 2001, which “prevented a much needed recession and bought us seven years of artificial growth”. The multi-trillion dollar bill was due 2008.

    He argues that inflation can sometimes look like growth but “it is no more capable of creating wealth than a hall of mirrors is capable of creating people.”

    I do agree with him that the massive stimulus is a punishment for those holding cash and that these people need to seek more inflation-secure assets, such as common stock. As long as money is virtually free, it is burning in the pocket and asset market bubbles are inevitable.

    In Swedish context, I have noticed few critical comments about the very-low-interest-rate-immense-stimulus strategy. Two articles (one recent) in SvD denote exceptions.

    But if Mr Schiff is right about all this, even about the 2 years, you as an investor have no choice but to follow the trend and invest in the stock market or even in property. You just have to know when to exit.

    Mr Schiff’s article in full.

    Rate this article! 3.67 out of 5