Discover more from The Inversion Investor
Sunday Muse: Redemption Returns
The Arc of Heaven & Hell
‘I am Alpha and Omega’
What is considered the greatest movie of all time on IMdB's top 100 list?
The Shawshank Redemption.
Observe the plot graph in which the protagonist obtains redemption. This is reminiscent to the historical resilience of the stock market.
The willingness of the story arc and the market to reach the depths of darkness, then become even darker is the secret formula to achieving exponential gains with dramatic swings - the double inversion.
In fact, asset classes that have the largest volatility tend to be the biggest gainers and it is the suppression of the ‘redemption arc’ that is the root cause of stagnation.
Consider the greatest people, stories, and companies throughout all of human history. Their greatness, rise, and mark on history are because of the opportunity for redemption. For without swings, there is no ‘Good News’.
What is the definition of ‘Good News’ in the annals of Western Christian lore?
"Good news" is its significance. It means a gift from God. It is the proclamation of the forgiveness of sins and sonship with God restored through Christ. It means remission of sins and reconciliation with God.
Good news or good newswires. Reports or earnings for the market are a remission of the past and a reconciliation with new highs or with God. This is why in business we refer to ‘blue skies’ and hockey stick curves. It is essentially a reconciliation to reach the heights of heaven - all-time highs.
The ‘Good News’ is in itself not very good until Christ resurrects.
Rise like a Phoenix
Before Christ can resurrect he must lose face.
Very impressive that the son of God would be allowed to be shamed and disgraced -’dis’graced. Or reach new lows as in life and the market, until ascension.
Christ shone the light on his own darkness. He taught us that we all have the ability to ascend if we are able to live in truth and if we can accept that we are essentially flawed.
Communism in the Bible
The Bible starts off with a short moment of communism in the garden of Eden. The lesson learned is that humans are flawed and posses ‘human nature’. The remainder of the bible is about our journey to reconciliation. This idea is the foundation of giving markets the volatility they need to complete the story arc to new heights.
The Ideas of Church and State
When America was founded it was based on individual liberty building on the progress that was made in the West before that. The freedom of man enabled the freedom of markets, which created the greatest ascent of man in the last few thousand years.
Part of the hope that lay with the British and American empires was the global adoption of the belief in the individual as a sovereign with intrinsic value. Yes, there was lots of terrible history made. But also progress was made in righting those wrongs through redemption, such as the abolition of slavery.
We can point to examples from around the world, where these values have been ignored, rejected, partially adopted, misunderstood, and completely butchered.
Human Nature is not Divine
This is why Jesus is called the King of Kings
As a reminder that at most some people may be anointed only as a representation relative to the perfect being but never beyond the threshold of human nature - but we can sure try.
Around the world, it is absolutely ridiculous to see flawed men self-anoint themselves as deities. The reason is that human nature is flawed and if that is your perfection the standard throughout society is lower.
When you control the arcs of flawed men you create an artificial society and market.
Knowing that our imperfection is part of our perfection helps us to discern reality, as we understand that everyone else is also fighting internal moral battles to assert free will over their lives. Creating Pockets of Light
Historical Volatility does not measure direction; it measures how much the securities price is deviating from its average.
When a security’s Historical Volatility is rising, or higher than normal, it means prices are moving up and down farther/more quickly than usual and is an indication that something is expected to change, or has already changed, regarding the underlying security (i.e. uncertainty). You may want to research/monitor the security more closely.
Saving Face with Plastic Surgery
In the case of Japan, they managed to outsmart colonialization from the West, adopted the model of empire, and proceeded to colonize Asia in WW2. The treatment of humans during that time was horrific and demonstrates the lack of understanding that was needed to manage that power responsibly. Similar to the way other Asian countries have ruled each other for centuries, with force and brutality.
Japan’s economic miracle came after the adoption of a new constitution guaranteeing the rights of the individual after WW2. Today, the cultural interpretation is still that the state and collective have preferential power over the individual through nationalism.
Capitalism was great while they were winning. But after the crash, the Japanese decided to change the rules of the game, instead of accepting they lost and returning to play the same game with better skills. They tried to save face and the opportunity for redemption was lost.
Those living in flawless utopias have a fear of losing face. They stay living in the moment when they become stuck in problems that don’t exist. By playing to not lose, they cannot accept the risk of redemption. So there will be no ascension.
INVERSIONS = THE MIDDLE WAY
Buddha set out to understand reality for himself. After escaping from the fantasy of prince hood and the torment of asceticism, he found the middle way. He inverted both extremes to reach selfhood based on reality. By doing so, he was able to impart his knowledge generously for the benefit of all.
The key to his teachings was to do the internal shadow work oneself. By living, in reality, yourself, you can interact with others in an honest way. As the Buddha’s teachings spread further East, the interpretation became increasingly collective through the big wheel of Mahayana. The vow to save all mankind before seeking enlightenment for oneself.
The teaching became inverted. So now there are Buddhists in Asia who are praying for others to reach enlightenment and expecting someone else to transmit enlightenment to them. The same people expect to make gains from benevolent markets, without facing the reality of loss that comes from ignorance.
By contemplating the Buddha’s teaching to ‘sort your own head out’, we can identify our own delusions and address them ourselves. The same steps are needed for redemption. Both teachings are guides for seekers of the light. Knowledge is Profit
The same is for the seekers of returns. We must double-invert the great ideas that have been wrongly inverted by well-meaning, but ignorant do-gooders. Guide to Inversion Investing
The endgame of centralization is to transfer all wealth from private hands to big biz aligned with big gov. Leaving individuals dependent on a parasitic system posturing as humane.
On the path, whole asset classes that were previously predictable and reliable will be decimated. Forcing out undiscerning fund managers and the public. Whole asset classes will be systematically bought out, then regulated for ‘everyone’s safety’ as protection against volatility.
Professionals and amateurs alike will be unable to distinguish real value as the old rules are rewritten in real-time. The pieces of the jigsaw will be taken away and replaced to build the new system; curated servitude.
As the opportunities to invest in redeemable assets lessen, the windows for accessing growth will close. It is the end days for socioeconomic mobility. Capital will increasingly be entrusted with those able to discern the light from feints of darkness. THE LAST STAND: DAWN OF THE DOLLAR
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