Author archives: Vern Gowdie

  • Complacency Breeds Stupidity

    05.03.2018 • AustraliaComments Off on Complacency Breeds Stupidity

    The good times — credit funded lifestyles we cannot afford — have gone on for so long that we consider this as normal. I can assure you that it is not. One of the positives that will emerge from this very difficult period of adjustment is going to be the

  • The Three-Pronged Attack That’s Destroying the Market

    23.02.2018 • AustraliaComments Off on The Three-Pronged Attack That’s Destroying the Market

    As fate would have it, the next (and far more destructive) share market collapse could happen smack bang in the middle of the Financial Services Royal Commission. And, if that’s not bad enough for the big end of town, we could well have a Labor government

  • Are You Lobotomizing Your Portfolio?

    20.02.2018 • AustraliaComments Off on Are You Lobotomizing Your Portfolio?

    In 1936, Portuguese neurologist Egas Moniz devised an ingenious method to treat schizophrenia - the 'lobotomy'. We now know the procedure to be absurd and barbaric, but at the time, Moniz' discovery was a modern marvel. It even earned him a Nobel prize. Just

  • What Happens When Wall Street Reaches ‘Peak Risk’

    09.02.2018 • AustraliaComments Off on What Happens When Wall Street Reaches ‘Peak Risk’

    Being dumbed down by central banks, financial institutions, the IMF et al. has created a complacent society. History teaches us that there’s an inverse relationship between complacency and risk. Lower complacency equals higher risk.

  • Ray Dalio’s Davos Myths: BUSTED

    05.02.2018 • AustraliaComments Off on Ray Dalio’s Davos Myths: BUSTED

    It wasn’t even the Goldilocks reference that made me shake my head. It was the old ‘cash on the sidelines’ myth. It conjures up images of investors emptying their bank accounts and pouring the contents into shares…flooding the markets with cash.

  • Here’s Your Financial Adviser Has Been Doing This Behind Your Back

    29.01.2018 • AustraliaComments Off on Here’s Your Financial Adviser Has Been Doing This Behind Your Back

    In its review that took place over two years the watchdog found financial advisers did not comply with their duty to act in the best interest of clients in 75% of advice files it reviewed. You know what’s explosive about that result? That it is only 75%.

  • Learn How to Minimize the Damage of the Coming Financial Failure

    26.01.2018 • AustraliaComments Off on Learn How to Minimize the Damage of the Coming Financial Failure

    We are being set up for the biggest financial failure since the Great Depression…and people are partying like it’s the Roaring Twenties. How are they going to cope if change brings us a 1930s-style economy?

  • Would You Take Out a Mortgage to Buy Bitcoin?

    12.01.2018 • AustraliaComments Off on Would You Take Out a Mortgage to Buy Bitcoin?

    When it comes to investing, there’s a well-recognised equation: the higher the market, the lower the investor IQ. Never fails.

  • Regain Your Independence by Thinking for Yourself

    10.01.2018 • AustraliaComments Off on Regain Your Independence by Thinking for Yourself

    Forget cold coffee and poor internet connections. The new first-world problems are going to be: My retirement is postponed indefinitely…I can’t afford to see the doctor… To avoid becoming a victim of the system, you need to take back personal control of

  • How to Prepare for the Bitcoin Bubble Fallout

    08.12.2017 • AustraliaComments Off on How to Prepare for the Bitcoin Bubble Fallout

    Central banks have blown THE BIGGEST bubble in history. History shows us that ALL bubbles eventually find a pin. Due to the breadth and height of this bubble — spanning the global economy and across all asset classes — containing the fallout will be nigh

  • Europe Uses “Economic Steroids” to Get Ahead of the US

    17.11.2017 • AustraliaComments Off on Europe Uses “Economic Steroids” to Get Ahead of the US

    How did Europe manage to out-flex the US? With natural growth? Heck no. The European Central Bank kept pumping the economic steroids - negative interest rates and money printing - for longer than the US. Europe may well puff out its chest, but all it's done

  • Beware the Second Half of the Market Cycle

    13.11.2017 • AustraliaComments Off on Beware the Second Half of the Market Cycle

    The weather is seasonal.Moods can change.Traffic conditions vary.Everything it seems is subject to variation and transformation…everything except investment markets.Investment analysts and commentators — in the main — always predict a better year a.

  • Here’s Why This Goldilocks Economy Is a Fairy-Tale

    06.11.2017 • AustraliaComments Off on Here’s Why This Goldilocks Economy Is a Fairy-Tale

    The more things change, the more they stay the same. Goldilocks is going to be mauled by another bear…and it’ll be far more ferocious than the one that awoke from hibernation in 2000.

  • Distressed Mortgages Surges by 20% in Australia

    03.11.2017 • AustraliaComments Off on Distressed Mortgages Surges by 20% in Australia

    This is the result of 26 years without recession. Risk-taking and complacency replaces prudence and caution. People have overreached and are now under the pump.

  • The ‘FOMO’ Pandemic Is Spreading

    02.10.2017 • AustraliaComments Off on The ‘FOMO’ Pandemic Is Spreading

    Don't forget - the investment industry runs on sales... just like any other sector. To generate sales, financial advisors will use emotional triggers like "a happy retirement" or "protection for your children". And it's easy to ignore reason and buy into

  • The Church of Scientology and Bitcoin

    22.09.2017 • AustraliaComments Off on The Church of Scientology and Bitcoin

    Space lord Xenu, frozen corpse spaceships, alien soul rapture, and brainwashing facilities on Earth? How has something so fanciful become an established, well-funded organization? True believers.... not unlike those worshiping Satoshi Nakamoto and his

  • We’ve Been Taking Growth Hormones Without Knowing!

    11.09.2017 • AustraliaComments Off on We’ve Been Taking Growth Hormones Without Knowing!

    China has taken this GDP growth obsession to another level. The government directive is ‘We will achieve 6.7% growth each and every year’. And, miraculously, that’s the number they produce…within days of the quarter ending. Fake news?

  • This Government Definition of “Employment” Is Laughable

    08.09.2017 • AustraliaComments Off on This Government Definition of “Employment” Is Laughable

    Work at least one hour per week for cash or — wait for it — in kind, and you, my friend, are employed. Congratulations; you’re now officially a bread winner…provided the baker will accept ‘in kind’ payment.

  • Gowdie: Why I Won’t Be Buying Bitcoin

    06.09.2017 • AustraliaComments Off on Gowdie: Why I Won’t Be Buying Bitcoin

    Would I buy bitcoin, Ethereum or any of the other 1099 cryptos? The resounding answer is: No. I wouldn’t put one red cent into these assets.

  • How Much Bull Can Investors Bear?

    01.09.2017 • AustraliaComments Off on How Much Bull Can Investors Bear?

    A few years ago I warned about chasing yield. There are no free lunches. The extra return comes with a potential sting in the tale. My parents learned that lesson the hard way...

  • Boomer Retirees Will Be Disappointed

    28.08.2017 • AustraliaComments Off on Boomer Retirees Will Be Disappointed

    As a baby boomer, I'll admit we took advantage of the stable financial conditions our frugal parents created, leveraged up, and enjoyed prosperity... but as the cycle turns, we should prepare to live like our parents did.

  • ABC: For Every Dollar Earned, Australians Have Two in Debt

    25.08.2017 • AustraliaComments Off on ABC: For Every Dollar Earned, Australians Have Two in Debt

    Stability creates instability as people take on more risk, believing trends will continue. That's a dangerous assumption...especially with a bank's money.

  • Thomas Jefferson: ‘Never spend your money before you have earned it.’

    21.08.2017 • AustraliaComments Off on Thomas Jefferson: ‘Never spend your money before you have earned it.’

    If households are almost ‘maxed out’, the only way to move the GDP needle into the positive is by governments going deeper and deeper into debt. Running even more generous social welfare programs. None of this is a productive use of capital.

  • A 37-Year Debt Buildup Is About to Crush the Market

    18.08.2017 • AustraliaComments Off on A 37-Year Debt Buildup Is About to Crush the Market

    All that’s happened since 2008 has been an accelerated pursuit of the policies that caused the crisis in the first place, lulling people into a false sense of security.