Observations

It is 10:00 am on Sunday. They are already there, sitting around a table sipping their cup of coffee. Talking about the news of the past week. Dr. R always greets me by singing a few lines of an Italian song. Sometimes I join him. People look at us, smiling. Buy EWL, he told me, immediately writing the symbol on a napkin. It is a strong ETF and is going to remain strong. Great, I answered.

SNS was not there. Cruising to Hawai. He finished his big project of renovating a plaza and leasing all the stores. A great personal and financial success.

Dr. H did not come. Probably he had the remnants of the cold he gave me the previous Sunday when I shook his hand. Oh well, it was too late when he told me.

I like EFA, Dr. M told us with a solemn tone. You should also look into EWG, EWO and EWS. They are strong, I added. Hillary, we concluded, cannot be trusted. Besides, she is too much to the left. Oh, well, what about Obama then? Silence. He is even further to the left.

Just do it. A long-time ago Dr. R recognized a new advanced procedure in surgery. He went to England to learn it. His career grew rapidly after that. Just do it. Do not waste time was his message. He likes art. Often he flew to London to buy pieces he liked. He is now selling them at a nice profit. When you like something … buy it. A good investment idea.

The art market is soft, he added. I am not surprised, I suggested. All prices have the same cyclical turning points from housing to copper to art.

The 1700s were a major turning point for the west. The English empiricists (Locke, Hume, Berkeley) and the continental rationalists (Voltaire, Rousseau). And Adam Smith and Turgot. They anticipated the French revolution, romanticism, and communism. But how do you make big money? Not through diversification. You are doomed to perform like the averages. You need to take big bets on a few trends.

Sunday, the time to exchange ideas. I look forward to it.

(This Observations appeared in the 2-26-2007 issue of The Peter Dag Portfolio ).

George Dagnino, PhD Editor,
The Peter Dag Portfolio.
Since 1977
2009 Market Timer of the Year by Timer Digest
Portfolio manager

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