In search of power and wealth

The history of money, philosophy, man, and commodities reveals fascinating patterns. The history of humankind is the history of power. Power of the markets, power of ideas.

A power group is an assembly of people with the same objectives and same philosophies, committed to the achievement of their goals. Ultimately, power and wealth.

Some examples. The communist power structure of the USSR, the ultimate expression of power designed to dominate a country. Any action was allowed to achieve this objective.

The management of a company struggles to acquire and maintain power over the market of their products. They achieve wealth and status in the process. This effort does not have a negative connotation. Management can provide financial security for their employees. Management compensation, however, is an important determinant of their behavior.

The unions represent an interesting power group. Their objective is to achieve wealth and well-being, making sure members are justly compensated for their work. The bureaucracy of a country is a major power group. Power is achieved by making sure more regulations are issued to protect us. If something goes wrong, lack of resources is the main culprit. They typically ask for more money to do the required job. This is how bureaucracy increases power and wealth (job security).

Older people represent a power group. They gave us Medicare and Social Security and we do not want to give it up. We would rather sink with the ship than try to save it. We have power and we want to keep our wealth.

Through the millennia, the church has been a major power group. Those who visit the European museums and listen to heavenly music enjoy the remnants of its immense power and wealth.

Industries such as housing, insurance, banking, as well as ethnic and religious groups, regulators, and “green” activists represent important power groups. The crucial question is how do they interact? What can we learn from how they conduct themselves? I am working on it.

To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.

I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.

George Dagnino, PhD
Editor, since 1977