The Journal Of Exponential Results - Alternative Investments Edition

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Vol. 1 • No.3

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Sydney, Australia

March 2011

Alternative Investments Out-Perform The Stock And Property Markets I consider alternative investments as anything that is not a financial instrument (stock, bond, fund, cash), physical property (apartment, home, building) or business.

Alternative investments by their very nature come in all shapes and sizes to meet a wide variety of tastes and needs from precious metals like gold and silver, gemstones including diamonds, as well as art and collectibles such as autographed memorabilia, comic

books, record album covers and even infamous Pez dispensers that gave rise to eBay. Alternative Investments have out-performed the traditional stock and property markets because of an increase in demand with a corresponding reduction in supply. They have also grown in popularity because they are easier to understand and are more enjoyable to engage in.

There is a sense of having more

Alternative Investment Returns 1980 - 2010

control because each segment represents a particular niche that is of passionate interest to that specific community. Information and knowledge becomes transparent – everyone ‘knows’ what everything is worth and pricing is set by the market, usually via auctions and other public sales.

Historically, alternative investments have out-performed their traditional counterparts by orders of magnitude as shown below.

C

MS64 Gold

B

MS63 Gold

G

Spot Gold

D

Gold

A

Art

P

Index

Laughing . . . . . . . . . 2 Mortgage . . . . . . . . . 3 Myths Debunked . . 4

Coming Up

How to make more money starting with a small capital base and less risk!

S&P500 Weather

Today – Cloudy And Uncertain . . . . . .

Tonight – Clearly Profitable . . . . . . . .

Tomorrow – Exponentially Profitable The Journal of Exponential Results • 1

Laughing all the way to the bank No one ever said investing had to be a chore or a bore. That’s in fact the underlying reason why alternatives have historically out-performed their more traditional (less flamboyant) alternatives.

With more passion and interest, alternative investors are generally much more informed, educated and aware of the market forces at play with their investments. Because they enjoy the process of learning, researching and wheeling and dealing, they are, on average, for the most part better at it.

Plus it’s fun. That means they devote more time to it, a selffulfilling prophecy that continually rewards the behaviour for what is usually a lifetime commitment.

Each market, niche or specialty has its idiosyncrasies so you can mix and match based on your available time, personal preferences and goals.

Most alternative investors stumbled into their investments as collectors, without the tacit desire to “make money”. They did it for the joy, challenge and interest in their hobby or pastime. That’s why this valuebased model is so strong. The community reinforces this base value over time and across geographies, often making it a much less risky proposition than most ‘outsiders’ think.

Return on Assets – 1968-2010 20.0% 19.0% 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% Inflation

GIC

Bonds

Comic Books

White Celebrity Property Diamonds Collectibles

Pink Diamonds

Art

Rare Coins

Precious Metals

MasterMind Your Way To Wealth The concept of the MasterMind Group was formally introduced by Napoleon Hill in the early 1900’s.

In his timeless classic, “Think and Grow Rich” he was the first to summarise, consolidate and document the organising principles (distinctions of success) of the most powerful, influential and financially successful people of that era.

Nearly every great achievement or massive fortune in history has been the product of a team of minds united in achieving the same, predefined goal. The American Dec-

The Exponential MasterMind Program: How to out-perform traditional markets with out-of-the oridinary thinking that creates extra-ordinary results www.ExponentialMasterMind.com 2 • The Journal of Exponential Results

Stocks

laration of Independence was the result of a MasterMind group, so was man’s first powered flight, as well as man’s first flight into space and subsequently the moon.

The MasterMind principle is simply stated as “ No two minds ever come together without creating a third, invisible, intangible force which may be likened to a third mind”. If you want financial independence and abundant wealth, creating a MasterMind Group is a must.

When it comes to wealth creation, financial engineering, legislation and tax considerations require multiple minds to act ‘as one’ to obtain an optimal result.

Trying to do it on your own is not only overwhelming and daunting, it’s a recipe for failure. The key difference between specialist advisors (accountants and lawyers) and a MasterMind Group is that the former get PAID by the hour regardless of the result they produce whereas MasterMind Group Members have your best interests at heart with or without payment.

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Paying off a mortgage with comic books There are countless stories of fortunes made with alternative investments, but one that stands out for me is a comic book collector paying off his mortgage collecting, buying and selling comic books.

An avid reader in his teens, he started accumulating his original collection in his early twenties. Surprisingly, it only dawned on him in his thirties that he could arbitrage

his superior understanding of the market value of certain titles to buy and sell them only weeks later for double-digit returns.

His increasing income allowed him to grow his collection as well as help pay the monthly mortgage, eventually pay it off completely.

Who would have thought you could buy a house with a bunch of comic books?

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www.ExponentialPrograms.com The Journal of Exponential Results • 3

The 5 most common alternative investment myths 1. They are riskier. That’s simply not true. With the Internet today, information is quickly available and easily understood.

2. The prices are volatile and fluctuate too much. Even though there are still swings and shifts in tastes, supply and demand over time, the global nature of most collectibles means this is less of a concern than it used to be.

— Dr Marc Dussault

3. Prices are artificially fixed by experts. This is no longer the case, most items are bought and sold in public auctions that span the globe, so price fixing is now almost impossible.

“My hobby actually pays me to do something I thoroughly enjoy.”

— Dr Marc Dussault

-- Stephen, Alternative Investor in stamps and rare coins.

— Dr Marc Dussault

Investment grade diamonds for the most discerning investor Suite 303, The Trust Building, • 155 King St, Sydney, • NSW 2000 (02) 9231 2311 • www.EskaeJeweller.com.au 4 • The Journal of Exponential Results