Monthly Archives: January 2013

The Iron Law of Investing (ILOI) by Richard Daughty

This is one of the main reasons why I stopped believing overall in investing in the stock market, via The Iron Law of Investing (ILOI) by Richard Daughty:

As an aside, this is to be expected because they are members of “the majority of people,” and there is an Iron Law Of Investing (ILOI), as in “inescapable mathematical imperative,” that dictates that the majority of investors MUST be wrong most of the time, making them sure losers over the long term.

Otherwise, you would have the mathematical near-impossibility of a small minority of investors losing enough money most of the time to make winners of the vast majority of investors over the long term! Think about it and say “Whoa! Ain’t nobody that stupid!”

Pounding home the point, I would angrily bang my fist against the table, and ask the terrified witnesses “If the majority of investors were actually right, from where could their profits come, except from the small minority of investors who, boggling the mind, were monumentally wrong most of the time over the long haul? And to also pay the enormous fees, charges, and expenses of the legions of middlemen and the relentless taxes of a ravenous government? Huh? Where? From where do you think the money could possibly come? Answer me, puny Earthling! Resistance is futile!”

And this is the other:

As the Dow Jones Industrial Average edges close to 14,000 let us just remark on the value of the famous index in ounces of gold. It may be that 14,000 is nearly twice the 7,949 at which the industrial average stood on the day President Obama was sworn. But what are we to make of the fact that the value of the Dow is actually lower today, having slumped to 8.38 ounces of gold from the 8.7 ounces at which it was valued on January 20, 2009?

We are by no means the first to ponder this point. There is a whole Web site that charts the Dow in gold.

Via Dow Hits Record High in Dollars, 20 Year Low in Ounces of Gold.

Just like all other forms of gambling, most people have to lose in order to fund the gains of the minority, and “value” of the stock market goes up and down in dollar value with inflation.

It’s a perverse system:

  1. The Federal Reserve creates money out of thin air – inflation.
  2. Most money goes to big banks which fiddle in the market, buying and selling securities, inflating prices,
  3. Some money goes into your paycheck, and the government has incentivized our investment of retirement funds into 401ks that go directly back into the stock market, inflating stock prices.

But when you compare the value of stocks to the ultimate stable asset – gold – the value is at an all time low when the price in paper money is at an all time high.

Nuts, I tell you!


Princess Bride T-Shirt Alarms Plane Passengers

A man on a Qantas flight over the weekend fell victim to one of the classic blunders: alarming some people whose sense of humor is mostly dead. On an Australia to New Zealand flight, passenger Wynand Mullins wore a T-shirt with a name-tag graphic that read Hello. My name is Inigo Montoya. You killed my father. Prepare to die. While the plane was boarding, a flight attendant asked Mullins if he could change his shirt, as it was making some of his fellow passengers … not nervous, but maybe a little bit concerned. Instead of arguing that the shirt does not mean what they think it means, Mullins, being a decent fellow, and not wanting to mock anyone’s pain, told the flight attendant he would do as she wished. Without much time for dilly-dallying, “[t]he flight attendant left in search of another T-shirt,” however, she “never returned.” Putting a damper on their relationship, the flight attendant “didn’t make eye contact with Mr Mullins again,” not even to ask if he wanted a peanut.

Make sure you click through for a picture of the shirt and read the comments on the article.  Via Princess Bride T-Shirt Alarms Plane Passengers — Daily Intelligencer.

One more reason to avoid CFLs

Stock up on incandescents while you still can…

“Despite their large energy savings,” professor Miriam Rafailovich from Stony Brook University told this week, “consumers should be careful when using compact fluorescent light bulbs.”

To test the bulb’s safety, researchers at Stony Brook University exposed healthy human skin cells to CFL light and compared it with the effects of the incandescent light bulbs.

“Our study revealed that the response of healthy skin cells to UV emitted from CFL bulbs is consistent with damage from ultraviolet radiation,” professor Rafailovich explains.

“The results were that that you could actually initiate cell death,” another researcher, professor of dermatology at Stony Brook Marcia Simon, told CBS Miami.

The Stony Brook team believes they’ve found the culprit: “In every bulb that researchers tested,” reports CBS, “they found that the protective coating around the light creating ‘phosphor’ was cracked, allowing dangerous ultraviolet rays to escape.”

And the incandescent bulbs’ effect on healthy cells? Zilch.

via The Case For Immortality | 5 Min. Forecast.

Things Not To Do With Your Shotgun

When a pump shotgun doesn’t want to pump, a tried and true redneck method of forcing it to open up is to grab the pump and only the pump, point the barrel at the sky and smack the buttstock on the ground as hard as you can. This is called “mortaring” the shotgun. Yeee haww! That’ll properly punish the gun for doing the thing we bragged was impossible. “Mortaring” usually violates several rules of firearms safety at once and for that reason alone it should not be done. For those who require further persuasion, I present to you Gunsmith’s Exhibit A, an otherwise very nice Winchester 97 takedown that angered its owner by refusing to open after a spent hull became lodged in the chamber.

Pictures and story at:

via Seen at the Gunsmithing Shop–Why Not to “Mortar” Your Pump Shotgun | The Firearm Blog.