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Bill Moore and Associates
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Your Personal Team |
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Bill Moore and Associates
E-Market News
Bill Moore and Associates 869 NW Wall St. Suite #204 Bend, OR 97701 800-743-0988
www.billmooreandassociates.com
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Dear Friends:
Extraordinary Popular Illusions and the Madness of Crowds
Bubbles are not a new phenomena. Recent memories bring back the technology "bubble" of the late 1990's and even more recently, the seemingly abrupt collapse of an unsustainable speculation in residential housing. Both have caused, and continue to cause, a great deal of pain. Both were linked at the hip to human greed with even average folks being caught up and participating in the madness of flawed financial models.
There is a strange similarity to the Tulip Mania in Holland during the 1600's or the SouthSea Bubble in England during the 1700's. Everyone was convinced that, "according to the model", no one could lose. In every case, the model was flawed.
As you know, we love reading and trying to learn vicariously. One of our all time favorite books was written over 160 years ago. As financial author Andrew Tobias writes in the forward to this fascinating read (1980 edition):
"Once upon a time there was an emperor with no clothes. For the longest time no one noticed. As you will read in this marvelous book, there have been many naked emperors since. There will doubtless be many more."
How right he was. Knowledge of the past is our best and perhaps only defense against the human tendency to embrace illusions and get caught up in the madness of crowds. We want to give you all strong encouragement to add this book to your library so you can grab it again the next time we are faced with a model that makes little sense, be it oil, gold, stocks or the bubble of the day.
Also for more great recommended reading visit our website:
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Disclosures |
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Please feel free to share this communication with friends, relatives or others that you think might be interested. If someone would like to join our email list they can contact us at troyreinhart@billmooreandassociates.com to be added. This is neither an offer to sell or buy any security. Such an offer can only be made by the prospectus for the specific security. Past performance is not a guarantee of future results. E-mail is subject to transmission failures or delays. Please do not send time sensitive messages, such as an order to buy or sell a security, transfer money, etc. Such orders are best done in two way telephone conversations or in writing if a signature is required. The S&P 500 Index is a composite of the 500 largest Companies in the US. Index past performance is not indicative of future results. The Index is unmanaged and unavailable for direct investment. Assumes reinvestment of capital gains and dividends. The Dow Jones Industrial Average is an unmanaged index of common stocks comprised of major industrial companies and reinvestment of dividends. It is not possible to invest directly in this index. One or more of the principals of Bill Moore and Associates are currently security licensed in AL, AK, AZ, CA, CO, CT, FL, GA, ID, IL, IN, KS, KY, MD, MN, MS, MT, NE, NV, NM, NY, NC, OR, TN, TX, UT, VA, WA and WY; and investment advisory licensed in AZ, CA, CT, ID, IL, IN, MT, NV, OR, VA and WA; and insurance licensed in AK, CA, OR and WA. Security and Investment Advisory services are offered through KMS Financial Services, Inc., an SEC Registered Investment Advisor and member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investment Protection Corporation (SIPC) who is securities licensed in all 50 states. A broker/dealer, investment advisor, BD agent or IA rep may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if they are excluded or exempted from the state's broker/dealer, investment advisor or BD agent or IA rep requirements; and follow up, Individualized responses to consumers in a particular state by broker/dealer investment advisor, BD agent or IA rep that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, shall not be made without first complying with the state's broker/dealer, investment advisor, BD agent or IA rep requirements, or pursuant to an applicable sate exemption or exclusion. For information concerning the licensure status or disciplinary history of a broker/dealer, investment advisor BD agent or IA rep, please do not hesitate to contact your state securities law administrator.
C 2008 Bill Moore and Associates |