“On the seventh day of Christmas my broker gave to me…7 dirty, filthy lies…”

1.       Stock picking works: See Day 5

2.       Timing the market works: See Day 2, 3, & 5

3.       Our research works: See Day 2

4.       Track record investing works: See Day 5

5.       Commissions work: See Day 1

6.       Forecasting works: See Day 6

7.       Markets don’t work: A Free Market Economy (Capitalism) is an economy in which the buying and selling of goods and services may be carried on without restrictions as to price and valuation. This really gets at the root of the problem with regard to the previous six lies. If you believe that prices of goods and services should be controlled by an external source other than “the masses” then Free Markets do not make sense. If the price of a product is too high, then people will not buy it. Logically then, the company will have an excess inventory of that product and in order to sell it then they will have to discount the price. This is a very elementary example, but it goes to reason. When the supply is greater than demand, prices go down. When demand is greater than supply prices go up. I like this quote from Adam Smith in his book “The Wealth of Nations,” “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages. Nobody but a beggar chooses to depend chiefly upon the benevolence of his fellow citizens.”

Philip A. Guske

Day 6 – “…6 stocks to buy now…”

Day 5 – “FIVE…DEADLY…INVESTOR MISTAKES!”

Day 4 – “…four ways to double my money…”

Day 3 – “…three rollercoasters…”

Day 2 – “…two active traders…”

Day 1 – “…and a huge fat commission to pay.”