Fulcrum Point

The shi of Sun Wu was to “make the most of the strategic advantage” and “if there is no advantage, do not move into action.” - Mark Spitznagel, The Dao of Capital: Austrian Investing in a Distorted World

The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already what is laid before him. - Leo Tolstoy

In 1543, Copernicus published De Revolutionibus Orbium, presenting, for the first time, a completely "heliocentric" theory of astronomy (i.e. that the planets revolve around the sun).  This theory was not universally welcomed by the masses. We suspect the established order already shared this knowledge which once deemed palatable by the masses was released… 

Copernicus' methodology of "reducing" conflicting empirical observations to "single" causes also applies to his famous 1526 work on monetary theory [19th Century]. Disagreeing with incidental arguements of general price inflation could be generally attributed to a reduction in the "intrinsic metal content" of coins.  Copernicus sensed, as had done in astronomy, the Quantity Theory of Money in his 1526 the primary or single common cause of inflation was the quantity of coins minted on any given metal [supply].

Despite the evolution of Smart Devices > Information sent instantaneous globally it appears the masses have yet to slow down to build a foundation to understand the denominator may be more the issue in the coming decade than the numerator.

Nowadays people know the price of everything and the value of nothing.

- Oscar Wilde

In financial markets, the fulcrum point refers to the turning point that marks a major change in direction for a security. The term can also be applied to the economy in general. - Investopedia

Should one have found this website / blog thru a card you have stumbled upon a work in process…

43% of our portfolio is GLDG - Goldmining Inc. This company was trading at a negative enterprise value this fall as we continued to increase holdings significantly at around $0.80 per share. A Neg Enterprise Value means the market capitalization of the company is priced LESS than its assets held in securities [GROY & USGO] on the balance sheet. Its vast array of Optionality properties were priced at Scrap > ZERO.

One owner of this new project is in process of using forces in the financial markets, surf and mass psychology to quietly Exit Stage > Left in preparation for a new Entrepreneurial Endeavor.

We see this as a time of great opportunity and the final Melt Up may be here in the general equity markets [von Mises Crack UP Boom].

This is a debt based currency > Fixed income > Derivative Promises to Pay Phenomenon.

We believe 2023 > 2024 is a critical Fulcrum Point for Investors recognizing these seismic anomalies in the financial system.

Markets Lead & Lag creating distortions to be potentially ridden by those who:

USE VOLATILITY vs Become Victims.

The tuishou exercise is a physical manifestation of the idea of waiting and exploiting your opponent's urgency. The real force in tuishou isn't in pushing; it's in yielding.

Austrian investing follows the Daoist model of pursuing a roundabout route to market success. Instead of following a direct route towards immediate gain, Austrian investing takes the more roundabout path towards immediate loss. This pursuit of loss is similar to the yielding in tuishou: you pull back and experience short-term loss, so you can gain a more advantageous position in the future.

Austrian investing is difficult to implement because it goes against our instinct to seek immediate gratification.

We can only succeed with Austrian investing if we can stop being so focused on the moment. This is extremely challenging, however. Why exactly is this so hard for us?

Well, humans are simply designed to prefer things that are immediate and direct, rather than intermediate or indirect. We want things that benefit us now.