Is Your Mainstream Investment Strategy Killing You?

Did you know what the average international stock fund's one-year return was? According to Morningstar rankings, over 2800 funds LOST an average of 45.7%.

What about their average annual returns over the last 5 years?

That same class of funds only earned an average of 0.28% annually!

Why I am telling you this?

It is because so often people tell me that their investments are secure in the mainstream marketplace.

Well, they may be liquid but how secure is a 45.7% loss? Or a 0.28% annualized gain over five years that doesn't even keep up with inflation.

If you are invested in these things you are:

1. Losing your shirt right now.
2. At risk for more losses.
3. Making brokers and bankers rich and paying off THEIR mortgages if they have any

So, if you are going to take risks you might as well get some yield.

That is why I have always sought out high yield high risk investments.

Done properly with a formula and understanding probabilities you can pull off a better annualized return than 0.58% for sure after all losses that can and do occur in the high yield investment world, the 12th Step world (http://www.twelfth-step.com)

Take an arbitrage pool like GNI

They promise and do pay a steady 6% per week.

It seems unbelievable if you think mutual funds.

But, not so if you think Sports Arbitrage. Do some research and see what you can do with arbitrage if you know what you are doing.

It is the same in business.

If you set up a hot dog stand on the corner and it costs you $100 and you make $$100 a day selling hot dogs and expenses are $50 a day what is the return on your investment?

50% a day right? If you have someone work it 365 days a year your little hot dog stand would return you over 18000%

You see, if you think like a businessperson you will never settle for minus 45% a year.

Invest in businesses not Wall Street Ponzis, most of them are nothing more than that. And much of Wall St. has been designed to do one thing: launder drug money around the world. This is an undeniable fact and if you want to move money around the world largely undetected set up a publicly traded company. So, shell companies and empty ponzis like Enron are a dime a dozen and are just unravelling now.

For me, give me high risk high yield any day.

Of course, I don't mean to say that ALL mainstream investments are bad. Just be careful what you choose and why you choose it and don't expect a high return any time soon.