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Investment
Tip of the Week Dear Forecasts & Strategies subscribers (1-800-211-7661),
The New York
Money Show had a small turnout, given the high turnout at other
Money Shows in Vegas, Orlando and San Francisco, but I had a standing-room-only
crowd at my special workshop on "The Map that Predicted the
Terrorist Attack--What is it Predicting Now?" and on "High
Income and Potential Capital Gains." I believe my high income
alternatives are the best place to be in today's uncertain market.
(Specific recommendations can be found in my newsletter, www.forecasts-strategies.com). I spent two hours with Mr. Giuliani at his table and also a private reception, and found him friendly and compelling. His book, "Leadership," is #1 on the NYTimes Bestseller list, a book I thoroughly enjoyed. He talked a little bit about how he helped transform New York City into a liveable city once more. He said that when he became mayor, a survey said that 65% of New Yorkers wanted to leave the city! I know my libertarian friends hated Giuliani for going after Wall Streeters, the homeless and the pornographers, but my view is simply this: Name another mayor who did more to increase the value of "life, liberty, and property" in New York City? Sure, Giuliani made his share of mistakes (what politician hasn't?), but I'm impressed from the big picture perspective. By the way, David Kelley, a well-known libertarian and president of the Objectivist Institute, was a guest at the banquet and applauded much of what Giuliani had to say. Giuliani spoke at the banquet about four principles of leadership: (1) a belief in set principles, (2) the need for courage, (3) the need for optimism, and (4) the need to be prepared. He made some good points: "Anyone can find problems, but who can find real solutions?" Also: "All great leaders are criticized for being irrational optimists." I spoke before Mr. Giuliani on my new book, THE POWER OF ECONOMIC THINKING. I quoted Giuliani's book on "Leadership," that "Leadership does not simply happen. It must be taught, learned, developed." I applied the same to "sound economic policy"--it has to be taught, learned, and developed. I gave several examples of how government leaders fail to use sound economics in their policies, such as Social Security, Medicare, and building new stadiums. I gave the example of Pac Bell Park, which was completely financed with private money, as an example of sound economics. I also referred to my special report, "The Map That Predicted the Terrorist Attacks," which shows that closed societies (such as those in the Middle East) breed intolerance, fanaticism and violence. Mr. Giuliani was deeply impressed with the map, referred to it in his speech, and took a copy with him. Regarding the rest of the New York Money Show, I did get a chance to hear Steve Forbes, who was upbeat about the economy and the stock market. However, he felt that the Fed policy was "too tight," based on the price of gold. It should be $350 an ounce, not $310, he said. I disagree with him. The money supply (M2) is growing at a 12% rate right now; that's plenty liberal. Interest rates are near record lows. Linking monetary policy with gold is a bad policy, in my judgment, due to the volatility of gold. You can't set a target of $350, without overshooting. Next week I'll be speaking at the New Orleans Investment Conference, Nov. 6-10, right after the congressional elections. This is always a super conference, and I encourage you to attend. Go to www.newsorleansconference.com or call 1-800-648-8411. Until next
Monday, this is Mark Skousen saying AEIOU. Mark Skousen
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