Yeah, like I said, I had trouble getting to sleep last night and I was thinking of the email I sent to you yesterday.
Have you read it?
If not, do it now. You’ll be a lot smarter at the end of it.
But, I had a lot more to write about. I did that at 3am this morning.
Let me start with a story…
Geoff is a doctor – a surgeon in the emergency room at St Vincent’s. We went out for coffee the other day and as we’re sitting there he says, “Hang on a sec. I’m just going to duck around the corner for a ciggie.”
“A ciggie?!? I thought you’d doctors would know better than that!”
“Oh, everyone in E.R smokes,” he said. “It’s part of the territory.”
What? I’m not about to let it drop so I quiz him about it. He reckons that working in ER shifts your perspective. You see so many people come in, young people who’ve treated their bodies like yogalates temples, who, by some twist of fate, just ended up in the wrong car, at the wrong time and the wrong place.
“You start thinking that it’s all just a crazy game of chance. So what difference does it make if you smoke or not.”
“But if you look at the stats, cigarettes are a much bigger killer than cars.”
He laughs. “Yeah I know that. Still, it’s what I see everyday. It’s my reality.”
Our experiences become the lens through which we view the world outside. And I see investors fall into this trap time and time again.
They think they’re doing the right thing. They read everything they can about the market, follow the news religiously, scan the internet like an inspector looking for Iraqi weapons.
And what always happens? They end up convinced that the economy is about to implode, and the only safe place for their money is in a nuclear fallout shelter somewhere in the Victorian alps.
Good news never made a paper sell. Remember that. The media is entirely geared towards digging up doom and gloom stories to spook and startle investors.
And if you’re devouring as much ‘news’ as you can, you’ll end up like Geoff, convinced that the world is random and cruel and on the brink of collapse.
I’ve been there myself.
So today, I want to show you eight charts that are essential to understanding the big picture of where we’re at and where we’re going to put the so-called news in perspective.