Archive Category: Green Zone Fortunes Updates

In 1984, communications scholar Walter Fisher introduced what he called the “narrative paradigm.” Fisher argued that humans weren’t exactly rational, number-crunching decision-makers like most scientists believed at the time. Instead, we’re storytellers. We rely not just on facts and logic, but on narratives and stories to understand the world around us. These narratives can be powerful learning tools — but they can also limit the way we see the world. As the old joke goes: “Never let the facts get in the way of a good story.”

ChatGPT went live in November 2022 — and the artificial intelligence boom immediately took the world by storm. Tech stocks from all over the market were suddenly reevaluated based on their potential to take advantage of the emerging mega trend. Shares of NVIDIA Corp. (Nasdaq: NVDA) more than tripled so far in 2023 as a result. But it’s important to remember that this massive trend is still in its infancy.

In life and investing, it’s important to know “who you are,” and what you stand for. Part of that journey also involves probing the inverse — that is, knowing who you are not, and what you won’t do. I’ve always been hesitant to criticize investment strategies that I don’t follow. Just because I don’t try to make money with a particular methodology doesn’t mean it’s objectively bad, or that other investors can’t make it work for them. There won’t be “trash talk,” here.

The idea is that by owning two stocks, each of which offers an 8% average annual return, but are uncorrelated … you can earn 8% a year, but with less volatility than if you’d simply bought just one of the stocks. Same return, less volatility — that’s the “free lunch.” But what no one will tell you is this: You’ll never get wealthy if you’re too diversified. A highly diversified portfolio is great if you’re already wealthy and want to stay that way. No single investment can sink your battleship.

Matt Clark here, chief research analyst of Money & Markets. I’m stepping in for Adam today, as he’s away for part of this week working on the launch of his brand-new artificial intelligence-based trading strategy. I’ll let Adam fill you in on more of the details as we get closer to launch later this month. But what I can tell you now is this… Adam’s developed a method that spends just 10 minutes a month trading stocks to outperform the likes of Ray Dalio, Cathie Wood and Warren Buffett … with annualized returns of 35%.