My take on the future of your liquid capital

Nov. 1, 2008
This article was written while burning the midnight oil because about 95% of this column's readers, who call me just to ask a question or actually become clients, have investments, and a significant portion of their wealth has been pummeled by the Wall Street meltdown. Let's look at the sad facts: On Thursday, Oct. 9, the Dow Jones Industrial Average nosedived 679 points to close at 8,579. Friday,

This article was written while burning the midnight oil because about 95% of this column's readers, who call me just to ask a question or actually become clients, have investments, and a significant portion of their wealth has been pummeled by the Wall Street meltdown.

Let's look at the sad facts: On Thursday, Oct. 9, the Dow Jones Industrial Average nosedived 679 points to close at 8,579. Friday, Oct. 10, was a bit better. The Dow was down only 128 points, closing at 8,451.

The Dow high during the past year was 14,280. Here's a fact you should burn into your mind: The Dow goes up slowly, but comes down quickly. It took three and a half years for the Dow to rise from 10,000 in January 2004 to its 14,280 high in 2007, which is a 42.8% increase (11% per year compounded).

But watch - that 8,451 close on Friday, Oct. 10, ended as the worst loss week in the Dow's 112 year history. It went down 1,874 points for an 18% loss in value for the week. The Dow indeed goes down fast.

The bailout is a laughable flop. Even more troublesome is the historical fact that when the Dow starts to recover, it probably will rise slowly. Just how many years will it take for the Dow to climb back to 14,280? Once it is at 14,280 you'll only be even - remember that the Dow rises slowly.

Let me say this loud, clear and directly, “Wall Street is obsolete!” I'm not just saying this due to the recent collapse of the Dow. The entire way Wall Street works is outdated.

Think about it this way: If you have more or less than $1 million in your brokerage account, your entire $1 million of capital must be fully invested, at risk, to maximize your potential for capital appreciation (sometimes with an equal or greater potential to suffer a shrinkage of your capital).

If you go conservative by investing in CDs, tax-free bonds, U.S. Treasury Notes or similar so called “safe” investments, you must tolerate the pain of meager return rates. Often these rates are lower than the annual inflation percentages. Sadly, your wealth erodes.

An ultra conservative software program that produces steady, reliable and spendable income is an alternative to Wall Street risks and the low-yielding “safe” investments. The software manages your capital in two ways. First, it protects your capital from loss. Second, the software manages your capital to consistently earn income at unprecedented high rates of return, which will be defined by real-life examples in a moment.

As you read the examples, if you are just a normal American guy or gal, you undoubtedly will say to yourself, “Sounds too good to be true.” That was exactly my thought when I first heard about the almost magical feats of the software.

What does the software do exactly? The software manages your money by opening and closing positions in nano-seconds without human intervention (auto-trading); earns astounding rates of return by consistently earning profits, usually daily and often more than once in the same day; has never closed a position for a loss (thousands of positions since inception in 2000); protects your capital at all times from a loss; and when you make money, only your profits are shared with the developer.

The software has nothing to do with buying or selling stocks, bonds or any other financial Wall Street type instrument. All positions are either on the Trading Foreign Currencies or taking positions in the futures market, particularly the S&P 500 index.

Please note that volatility is the software's best friend. The higher the volatility, the more likely the accounts will enjoy a higher rate of return.

The following real-life examples show how the software works:

1. In order to verify that the software does all that the developer claims, I insisted that we open a joint account called our test account. We each put in $50,000, a total of $100,000. The first position was opened on Aug. 5, and on Oct. 12 the balance in our account was $155,500.52, up 55% in 10 weeks.

2. Congress failed to pass the so called bailout the afternoon of Sept. 25. The Dow immediately plunged a record-breaking 777.65 points. But the software loved every minute of the Dow's dive, enjoying the best day of its eight-year history. The reason for this is that extreme volatility produces extreme profits. Each starting S&P contract enjoyed over a $30,000 profit by the end of this single day.

3. On Friday, Sept. 26, the Dow climbed 485 points. This was like a walk in the park for the software. Volatility did its magic again, delivering a profit day for the S&P accounts of over $20,000 for each starting S&P contract.

Please remember that past results do not in any way predict future results.

Of course, you want more information. I wrote my first article about this software two months ago. We have been overwhelmed with requests for more information, so we have created Plan B since I still get two to five requests almost everyday. The developer will host a Webinar, explaining how the software works and answering all your questions, live, at the end of his presentation.

The minimum investment at this time is $500,000. Please note that we are in the process of transferring our test account and the necessary additional funds to make it a $500,000 account. Your account will be segregated and controlled by you - only you will be able to take money out. To accommodate those that can afford to open an account for a minimum of $100,000, but less than $500,000 the developer intends to start a hedge fund. So, anyone who is a qualified investor can join the profit-making fun.

To join the Webinar held every Saturday at 10:15 a.m. EST, please fax your name, address, phone numbers (business, home and cell) and nature of your funds (personal, company, IRA and other) to 847/674-5299. Also include the estimated original funding amount for your account. Please write “software” at the top of the fax page followed by your email address.

Irv Blackman, CPA and lawyer, is a retired founding partner of Blackman Kallick Bartelstein LLP and chairman emeritus of the New Century Bank, both in Chicago. He can be reached at 847/674-5295, email [email protected] or on the Web at www.taxsecretsofthewealthy.com.

Voice your opinion!

To join the conversation, and become an exclusive member of Contractor, create an account today!