Investing

In the interests of full disclosure, I will start by saying that I’ve never made any significant money in the stock market which could not be duplicated by moving funds around in savings accounts / GIC’s and other instruments that are guaranteed to return something above the principle no matter what. With that said, I’ll now proceed to give some investment advice for you to mull over in your mind. Whether we like it or not, the universe is mathematically based on the number 2. The number 2 as a fraction is ½. The fraction ½ means that everything tends to even out over Time. Evening out over Time, which is the 4th dimension, means that while you and I may have different adventures in life, our lives tend to even out in terms of results. Some people may have horseshoes and some people may never get anything right, but about 68% of us end up in the middle of the old Bell Curve as average. The primary goal of investing is finding something that is above average. To start, stocks are broken out into different sectors such as financial for example. The theory behind these groupings is that while these groups average out like everything else, they tend to go up and down like a wave over time just like your and my life adventures. This behaviour is the basis of the next great invention called diversification. Diversification means that if one group of stocks is going into the toilet another group is climbing out of the toilet so spread your money over the sectors . Overall you will once again tend to average out over ½. The last great invention is Sector Rotation. If you are an all eggs in one basket sort of gal or guy and since nothing lasts over Time, Sector Rotation means that if your once hot sector is going down like the Titanic then find the lifeboat which is another sector. Now let’s suppose you find the right sector. Not all the stocks in that sector are going to make money. Once again about ½ on average. If the sector is hot its’ returns on average will be above average or once again above ½. The trend line which is all the stock increases together should have an upward trend line. The optimum trend line angle is 45 degrees which you will never meet but the closer the better. The first thing is to calculate the average returns for that sector. The next step is to find the sector stocks that are going up. This might sound silly but we live in a real world where we can only invest in concrete things. If we could afford to invest in all the stocks or some scheme which represents all the stocks we are going to average out at ½ faster over time. The next step is to find 3 stocks that are related in some concrete way beyond a sector relationship that are increasing since the universe tends to stabilize around the number 3. If you can find 9 stocks that are primarily related in groups of 3 that are trending up in terms of stock increases your sector is healthy over the immediate future. If you can’t find any bonded stocks in groups of 3’s the sector is starting to fail. The failing benchmark fractions in terms of stock price decreases are ¼ and 1/3rd . The positive benchmark fractions in terms of stock market increases are 2/3rd and ¾’s. If stock market increases start to double, this result will start to attract competitors for that company’s markets, since market product profitability is reflected eventually in stock prices.

Space / Time / Perception

Einstein said that physical objects are not in space, but these objects are spatially extended. In other words, space does not exist, but only the perception of space. This observation by Einstein is quite profound as it extends way beyond objects in space because it can be applied to what artists call perspective. If you look at a painting that has perspective you will swear up and down and sideways that you are looking into space because the space that your mind sees has been spatially extended but doesn’t physically exist. In other words, you can’t walk into that painting. Spatial extensions are also done with light and shadow. In general, perspective in painting is built by using triangles or combinations of triangles (squares / rectangles ) and light and shadow. In a more abstract sense, perspective is how you view the world. Here your perspective is generally based on life experiences / culture / beliefs. Your mind, after considering what you see, draws ( spatial ) conclusions. Once again space doesn’t exist.

Yes, No, Maybe

Most of us, if asked, would probably say that the world is based on the number 2. We have the fraction ½. Most of algebra, which we can solve without going nuts, is based on a function of x ( f(x)) raised to the power of 2. Probability based on a gut feeling without facts is usually represented by ½. Most of us can remember 2 things without any problem. Rules are based on two choices ( 2 ) which are either you follow them or you don’t follow them. On the other hand most of us realize that nothing is 100%. Someone once said that the impossible does happen. One of the Impossibles is meeting a member of the opposite sex and following in love immediately. If a stranger immediately handed you a piece of paper and asked you to write down why you feel the way you do in concrete terms most of what you’d write would also apply to a friend of the opposite sex that you know you’d never marry in a million years because you don’t love them like you love this stranger in front of you. The worst thing is that for the first time in your life you realize that you have no control over it when this stranger is in front of you. If you turn into a klutz in front of this stranger then you’re in love. Most of us will try to regain our life by ignoring them but sooner or later you will realize that no one else matters like they did before you met this stranger. Sometimes we even try to studiously ignore them over time but sooner or later we realize that isn’t going to solve the problem. Worst of all if they crooked their finger at you, you’d be off with them like a shot abandoning all your principles. You have just been conked by a maybe. The universe is based on the number 3 and in this case the number 3 is (yes, no,) maybe. Maybe is the possible which has no attached facts or at least no facts until it happens to you. Most of us treat the fraction ½ as our maybe. Maybe has the fractions ¼, 1/3rd , ½ , 2/3rds and ¾’s associated with it. ¼, 1/3rd is the possibility it will never happen. 2/3rds and ¾’s is the possibility it will happen. ½ is the safe calculation that even outs over time.

Fuzzy Probability / Possibility

Probability is based on the real world and what may happen if something is related or unrelated. Possibility is based on the likelihood of something happening without any mathematical proof. Fuzzy Probability / Possibility is based on the maximum probability / possibility that two things may happen simultaneously which are unconnected minus the sureness of two things happening at once which are unconnected. Possibility is based on the maximum probability / possibility minus the sureness of something happening. Possibility is based on ¼, 1/3rd, ½, 2/3rds, 3/4ths without any facts. Fuzzy "or" is the maximum probability / possibility on a graph.

P (A or B) = p (a)+p (b)-(p (a)*p (b))

Probability is based on the real world and what may happen if something is related or unrelated. Possibility is based on the likelihood of something happening without any mathematical proof. Fuzzy Probability / Possibility is based on the maximum probability / possibility that two things may happen simultaneously which are connected minus the sureness of two things happening at once which are connected. Possibility is based on ¼, 1/3rd, ½, 2/3rds, 3/4ths without any facts. Fuzzy "and" is the minimum probability / possibility on a graph.

P(A and B) =((p(a)*p(b) - p(a)+p(b))

War

I got thinking about war the other day. Most of us are competitive in nature but are constrained by the social mores of our society. Fortunately, most of us also live in the center of the old Bell Curve. Here we are reasonably competitive with each other without being downright unfriendly. Those on the extreme left of the Bell Curve have self esteem issues / are poor / are unfortunate which most of us try to help to the best of our ability and knowledge should we run across them. Those on the right of the Bell Curve are the more competitive people that accumulate more markers of success which we call money. These people become Titans Of Business / politicians / sports heroes which are the three main relatively safe competitive sports. On the extreme right of the old Bell Curve we have the near and outright dictators. Into this mix we add the uncertain future which comes to us in random events, consequences of decisions and perfect storms. Maturing dictatorships that have finally organized themselves are faced with trying to keep their people content without losing their power. Organizing people through fear and terror is relatively easy in principle but there comes a time that the usefulness of this approach has diminishing results so we have the problem of what to do next. In the old days before the invention of atomic weapons we simply started a war through design or miscalculated brinkmanship. Wars gave the people something to do and rallied them around the dictator / instigator. Wars used up excess capacity in the form of industrial goods and lowered unemployment as everyone went into the armed forces. WW1 is an excellent example of using up the capacity of the industrial revolution which needed markets. WW11 is an example of what to do with unemployment. The invention of atomic weapons meant that war could no longer be large scale. This development encouraged the invention of small scale armed insurgencies which weren’t worth atomic bombs. Beginning / developing dictatorships based on fear / terror / isolation have a natural tendency to believe their own propaganda because no one is prepared to risk death to tell the dictator that he / she’s courting disaster. Most dictators eventually become mesmerized by their own importance and start to push outside people / societies around. In the beginning most outside people / societies are willing to tolerate this behaviour in the hopes that it will go away. The dictator fed by his country’s accolades sees this accommodation as weakness and fear on the part of the outside people / societies. The dictator keeps pushing and pushing until finally the outside people / societies decide that the situation has to be permanently remedied no matter what. If this dictatorship has atomic weapons and if the outside people / societies don’t care about the consequences as long as the irritant is removed then ???? Today we have the perfect storm in the offing. World wide unemployment. Loss of success measured in units of money because of bailouts. North Korea with its’ atomic capacity / large army trying to gain respect in the only way it knows how. China with its’ need to maintain power yet let its’ people prosper because they know their society has matured. The United States as the good guys with its’ resources stretched and its’ beliefs / society being hammered externally and internally. The rest of us in the also ran category. Something has to give but where????

The Theory Of Everything

This universe is presently seen as events / particles / objects, strings and frames. Particles / objects are physical things that you and I can see, feel, and touch. Events are things that happen in our universe. Frames are concerned with Einstein’s Theory Of Relativity on a perspective basis where frames are either stationary or moving / changing relative to each other. Strings are the energy / force, time and space which we experience in various forms in our day to day activities. In the beginning, strings were tightly wound in a ball. The strings were energy, time, and space. Each ball was subject to all probabilities and possibilities. The balls in the mother universe frequently exploded into unwound super strings but remained in the mother universe. Eventually, before the Big Bang, one super ball of held strings hit the probability / possibility of leaving, creating our universe. The Big Bang, as seen by us, is the result of the super ball of held strings breaking apart into the three strings of energy, space and time. The rules of this universe weren’t settled instantaneously so the three strings of energy, space and time expanded under simultaneous possibility and probability according to the rules of the universe the super ball just left. After things started to settle down relatively, the strings started to release events / particles / objects which we see under various names and processes today. Residual strings still exist today, but because of our development of language we call them different things thus obscuring their origins. With the creation of events / particles / objects from strings we developed the habit of associating events / particles / objects with forces which are really energy strings by other names due to language / our effort to understand our environment. The forces are seen by us to have different strengths because our knowledge of energy strings isn’t complete. Today we also have Dark Matter / Dark Energy which may well be a remnant of our mother universe appearing in our universe due to the violent nature of this universe’s creation. Time strings in our universe basically move outward carrying everything with it. Space strings basically bend and flex which we explain in terms of The Theory Of Relativity. Energy strings release events / particles and objects which we see in various forms. Each event / particle / object has a string associated with it which we call different things. Mathematics is concerned with particles / objects which are both known and unknown. Strings can flex and bend which we see in the study of Geometry / Trigonometry. Calculus is associated with change which is basically an offshoot of The Theory Of Relativity. Lastly strings appear in string mathematics which is a new discovery and seems to be related to Primes and other interesting stuff which I don’t quite understand except to say it’s exciting.

After Relativity - What???

The universe consists of particles / objects / events, strings, and frames. Physics first recognized particles / objects / events when it explained the universe in terms of mechanics. The discovery of electricity brought in the discussion of fields but this was a branch of particles / objects / events. Einstein advanced physics in his discussion of relativity which involved particles / objects / events in frames and how particles which are really you and me and how we related to objects / events in a frame and how we related to objects / events outside a frame when the frames were stationary and moving relative to each other, hence the Theory Of Relativity. The third leg of the stool is strings. Strings are all over the place. In religion, we speak of God knowing all and being everywhere at once. One infinitely long and wide string holding everything together. I believe God exists simply because this universe is too complicated to have happened randomly even though we have evolution now. Your and my life is basically concerned with fitting things together either physically or mentally. This is building strings. We are concerned with building partnerships / finding love / building careers which is really building strings by another name. We speak of finding the path to success which is strings again. Chemistry is mostly about bonds which are strings again. Light is both a particle or a wave. A wave is a vibrating string. String operating vertically is gravity. String operating horizontally is time. String which is stretchable and curves is space. If a string has frequency it has a property which we see as objects / particles / characteristics such as charisma and likeability. If a string stretches or shrinks it changes its’ frequency which we see as red and blue shifts. If a string is accelerating we see it as a dark matter force. If a string has a velocity we experience it as dark matter energy. Occasionally, strings will form a particle / object with a tail. That particle / object vibrates at a frequency which we see as life / characteristics. The vibrating particle / object gives off energy which affects its’ surroundings. This effect is charisma. A string can also be a physical particle / object building or an event which happens out of the blue. A string can form frames which we see as dimensions including time. A string can form dimensions which we can’t see but can experience in the form of quantum effects when strings as objects appear out of nowhere and leave trails which are characteristic of a particle / object. The same equivalent effect occurs in our dimension when someone leaves a mess or an particle / object collapses. String as time can also stretch or curve on a random basis. We experience stretched string time as a hardship as in waiting for someone or as a task which is annoying. Curved string time is experienced by us as something pleasant which is far too short. Strings are the third leg of the stool. Hence, The Theory Of Strings.