I had the great opportunity to connect with one of the most legendary investment newsletter writers in the world, James Dines, publisher of The Dines Letter, for a powerful conversation on markets, gold, & crowd psychology.
Throughout his 60 years of publishing, Mr. Dines has amassed a true library of personal writings, often times being the pioneering global voice of major long-term trend changes in markets and societies.
Of great interest, is his work in the field of psychology. Mr. Dines has documented about 90 of what he calls “High-States” and “Low-States” of thinking, such as the “high-state of service”, and/or “the low-state of stealing”. This philosophical framework contributes to Mr. Dines’ market calls, to which he and his readers have used to create absolute fortunes.
When asked how his life philosophies contribute to his investment work, Mr. Dines said, “I came upon the principle of truth…and there are levels of it, including ‘high truth’. I came up with about 90 of these ‘high states’ that are important in guiding us…for example ‘service’. If you come from serving people instead of taking from them, that immediately get’s your head straight in terms of making relationships work. It’s also important in investing, because you can’t lie to yourself. Nobody could deceive us as we could deceive ourselves. All that exists in the universe is truth—and resistance to it. So when you get down into truth, you can invest more intelligently, your relationships will be better, and you’ll be happier.”
In speaking to the shocking accuracy of his calls over the years, Mr. Dines explained that, “It’s important to understand history [in order] to predict the future. For example, everybody studies the 1930′s to understand the first great depression (we’re in the second one now), but you can’t learn what the cause of it is, by studying it. You need to go back to the 1920′s and realize what the source of it was. And the source of it was a conference that doubled the money supply to pay for WWI, which caused the boom of the 1920′s, and was then punished by the deflation of the 1930′s.”
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