I'm a bit puzzled as to what is going on in the US economy today. The stock market goes higher almost every day, but yet the dollar falls by an equal amount every day. Everyone on TV is saying what a great market environment this is, but what good is it making money if that money isn't worth anything?

I don't reside in the US, and since the beginning of 2006, my long-term investment accounts have returned 0% when you factor in the dollar's fall. Why does no one talk about this? Can it really be considered market growth if your dollar is falling by equal amounts? Feels like we're going nowhere, spinning our wheels…

Do your readers know of any books or historical situations where this has occurred? Some kind of reference point I can study and from which I can get some insight here? I am fed up of trading the US markets after so much time of $ devaluation.



I’ve been reading Georgs Soros’s book “The Crisis of Global Capitalism”. I know you worked with him and spent a lot of time with him. I was wondering what he thought of your approach to the markets. In this book he seems to be diametrically opposed to your views. He calls social science a false metaphor and says that we cannot fit the mold of Popper’s model of scientific method to the markets since they are reflexive in nature. Applying the scientific method to my trading added much clarity to my life and career. So I am trying to understand Soros’s thought process. I know nothing of him other than what I have heard of his enormous success.

I thought it very curious that he hired you and spoke so highly of you yet his philosophy on markets was the complete opposite. Just wondering how that was…

Victor replies:

Mr. Soros’ view of my approach is that it is not valid in any respect and he has eschewed all contact with me for the past nine years. I have found his ideas on tennis balls, and his survival instinct, worthy of emulation.


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