Rules of Wealth

by | Aug 17, 2010 | Archives

Some rules of wealth are set in stone.

Yesterday’s message “Power of Image & Spin” looked at how many leaders (controllers) use sound bites and media to stonewall the public. That message also looked at one way to make, keep and enjoy wealth despite the fact that stonewalling by officials seems to have grown.


I could not help thinking about stonewalling one my recent trip to the Cotswolds. There are stone walls everywhere!

I was recently told that there are more stones in Cotswold stone walls than in the Great Wall of China.  I am not sure who did the counting but Cranham is one of the charming villages built of… this Cotswold stone.

gary-scott-in Gloucestershire

The village is surrounded by ancient beech forests that house seven springs leading to seven rivers.

I lived for several years in this area… in Minchenhampton (Forwood to be exact).  Here is our son, Jake, at our old house there… also built of this stone.

gary-scott-in Gloucestershire

This is a huge old manor house, constructed over 100 years or so beginning in the 1700s… with wonderful views of  the woods and our next door neighbor… Princess Anne at Gatcomb Park.

We were happy to be back in Gloucestershire with Jake and he took us hiking up into the beech forests and down to the springs and into Cranham.

gary-scott-in Gloucestershire

We started at the sawmill, house in a failed sanitorium…  now imbedded with rich aromas of fresh cut wood.

Finally we reached Cranham… hiked past the…

gary-scott-in Gloucestershire

town hall.

We stopped at…

gary-scott-in Gloucestershire

the local pub for a lemonade before working our way back to the car.

Pricknash a Benedictine Abbey set in the heart of the Cotswolds was in the distance.

gary-scott-in Gloucestershire

This is an interesting area. I featured it in my first novel, “The 65th Octave”… which was about the controllers who try to mess with our lives.

The area has a history with novels about controllers as this is where George Orwell lived in 1949.  He had TB and entered a Cotswold’s sanitorium in Cranham, (they must have been popular in this area then) in January that year.   The sanatorium was turned into a commune in the 1960s and remains so to this day.   His novel “1984” was published in June that year and over 400,000 copies were sold in the first 12 months… just months before he died.

Though Orwell’s novel missed in its predictions by 25 years or so… many feel that we now reached an Orwellian world… with newspeak… thoughtcrime and help from Big Brother.

I sure do not know how to change this fact. Every generation has its burden to bear and government intrusion is one of ours.

I do know however that there are several steps we can take to survive and prosper in this type of world.

One step we can take is to look for international investment trends in the shadows. The same technology that allows spin and deceit to mislead a big chunk of the public can help us gain a clearer view of the truth.

This means that we can gain many clues about good international investments that are not obvious.  Global investment hints are subtle.

Here is an excerpt from Chapter 6, page 34, of my novel, “The 65th Octave.”  This book is sold out in print but we’ll have it online soon and I am working on the next… “The 64th Symphony”.

I cannot tell how or what they knew or even who they were. All I can write even now is that I knew. I imagined seeing shadows in the outer realm of my vision that were staring intently at me as if they were piercing my brain. They had focused their total attention and my thoughts, my memories, emotions, my whole being and history were clear to them. First, I knew I was being followed. Someone seemed to know every move I made. I tried to throw them off track by taking the underground to places where I had never been. I would jump off one train unexpectedly and get onto another. I watched and made sure that no one could be following me.

I’m not experienced at this sort of things, but know I was not being followed. Yet when I reached my destination, I knew they were there, watching and waiting. But what were they waiting for? I never knew, nor did I even know who they really were. I could never see them straight on. All I could see were fleeting glimpses spotted out of the corner of my eye or their shadows in a mirror. When I looked they were always gone. But I knew they were there!

This novel was released long before the war on terror diminished so many of our freedoms and rights but it recognized and included in its themes even then, that we as businessmen and investors, rarely get a clear picture about what is really going on in markets, government or the financial system.

Are markets manipulated and rigged? Do insiders and controllers in positions of power line their pockets at our expense? You bet and there is little we can do to stop this happening.

But there are three ways we can take advantage of those who are trying to control us. The answers are hidden in the shadows.

We need to keep an eye on shadow events because we probably never know all the plots that are hatched by others to take advantage of us. Even if we did know, what could we really do about them? Better to be cautious and rich than fooled.

One way to look into the murky side of things so we can spot trouble coming is by watching short interests. One way we can do this is via the International Securities Exchange ISE.

For the last 10 years the International Securities Exchange (ISE) has grown to become a leading options exchange that offers options trading on over 2,000 underlying equity, ETF, index, and FX products. (link to more data are below).

The ISE issues a daily short sales report (see link below) so you can go in and look to see if there are short sales in a particular share or sector.

For example as we approach September and 9/11 one might wonder about security and terrorism.   Can we trust what our media and politicians tell us about our safety?

Had one been looking at short sales just before 9/11, they might have wondered why United and American Airlines were suddenly so strongly shorted.

The short sales report will be quite daunting to many so a somewhat easier approach is to check on indexes. The benefit of these indexes is they can act like spotlights that illuminate the shadowed areas in markets and our lives.

This highlighting can be quite broad because the ISE has created quite a few indexes. These indexes track the performance of publicly traded companies in various industries. ISE sector indexes provide an effective way to see through shadows to see where the big money is putting its money rather than listen to the sound bites and spin.

The ISE has a partnership with First Trust to provide ETFs based on ISE these indexes, so investors can actually invest in market movements if they choose in this way.

Sticking to the September security theme, we can use ISE’s – CCM Homeland Security Index (HSX) as an example.

This index includes companies engaged in contractual work with the Department of Homeland Security, law enforcement agencies, or providing products or services for the following.

The top 13 companies represent nearly 75% weighting of the components in this index and are:

Agilent Technologies Inc
Brady Corporation
Check Point Software (US)
FLIR Systems Inc.
Harris Corp
L-3 Communications Holdings
McAfee Inc
SRA Intl Inc A
Symantec Corp
Thermo Fisher Scientific
VeriSign Inc
Zebra Technologies Corp A

If at any time there is a threat of war or terrorism… look at what happens to this index…. not what the politicians and media say.

Right now the index has fallen… a suggestion that the investing world is not expecting any major security issues soon.

ISE index

Here are some of the other indices at ISE that help you see and hear beyond sound bites and spin.

* First Trust ISE Global Engineering and Construction Index Fund (FLM)
* First Trust Global Wind Energy Index Fund (FAN)
* First Trust ISE ChIndia Index Fund (FNI)
* First Trust ISE-Revere Natural Gas Index Fund (FCG)
* First Trust ISE Water Index Fund (FIW)
* First Trust BICK Index Fund (BICK) Bick stands for Brazil… India… China and South Korea.
* First Trust ISE Global Platinum Index Fund (PLTM)
* First Trust ISE Global Copper Index Fund (CU)

Another way to see short sale interests is at

short sales

Profit from the Shadows!

How can we cash in from these vague movements in the shadows that we might spot?

One way is to follow the same distortions the controllers do. Play their game.

The logic here? Shares are not always  the best place to invest because of the potential for long term loss.  Yet those who deceive us usually invest one way as they talk another.

Shadow watching by its nature is vague and hard to define. The clues you gain will never be clear, but if you hear a lot of media and spin suggesting one thing, but see markets move in the opposite direction… invest with the market.

We live in a murky world and rarely is it safe to assume that what we are told is not what we will get. With so much happening beneath the surface, the ephemeral nature of shadows may be of more value than it would seem.


How We Can Serve You

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See review of ISE

See all the shares that are the components of the CCM Homeland Security Index

ISE Daily Short Sales Report

Link to