In a time of drastic change it is the learners who inherit the future. The learned usually find themselves equipped to live in a world that no longer exists.” – Eric Hoffer
Holistic Investing, A Primer
What I’m about to discuss is clearly not politically-correct and it will probably be misconstrued by some. Although this discussion could be very difficult, if not impossible, for some to grasp and/or to accept, I believe, that just as night turns to day, this scenario, too, shall come to pass.
“Holism” is the idea that all the properties of a given system (physical, biological, chemical, social, economic, mental, linguistic, etc.) cannot be determined or explained by its component parts alone. Instead, the system as a whole determines, in an important way, how the parts behave. The general principle of holism was concisely summarized by Aristotle in the Metaphysics: “The whole is more than the sum of its parts”. I am not discussing this as someone with a spiritual, political or a prejudiced agenda, but rather as someone who, after 25 years in, and around, the financial world, has come to realize that successful investing can only come from being ahead of the crowd in all of life’s matters – not simply from being ahead of the crowd in financial matters such as identifying investments that are hot or not. You have recently heard of the “Global Economy” because it became apparent that all of the world’s economies were interconnected when the US mortgage-backed securities destabilized the world banking system. Well, I believe that the “Global Economy” is actually powered by intelligent “Holistic Investing”. We now have to consider more than simply the Western methods of investing if we want to stay ahead of the crowd.
While much of America’s media has spent significant attention discussing the potential change in the world’s climate, it has devoted little attention on a change that, unlike global warming, will leave little room for debate on the reality of it. It is slowly becoming apparent to the collective American consciousness that the Judeo-Christian society, which built and maintained America’s way of life for its first 200 years or so, is now being challenged, if not already partially-dismantled. The compelling reality is that the American investing public does not fully-realize the true extent of how far the world as a whole is moving away from this way of life. There are those who believe that by 2040, the Islamic religion and Islamic way-of-life will have taken hold of the world simply due to immigration and the high rate of reproduction by Muslims and the very low rate of reproduction of the European, Asian and American societies. This “jihad” will not be violent but rather simply be a matter of numbers. I truly believe that these facts will come to bear and the vast majority of Americans will be caught off-guard, just like they were for the most-recent financial crisis of this 21st century.
However, in my humble opinion, the Islamic scenario will eventually impact us far more than this recent economic upheaval. When America finally experiences the Islamic impact, few Americans will have even considered or anticipated the cataclysm that we will experience sooner than later from the world demographic change that is already underway as explained in this video: http://www.youtube.com/watch?v=6-3X5hIFXYU. I would not be surprised if you were shaking your head after viewing the video. Most people are both taken aback and are concerned after viewing it because those cold facts should have hit them hard. The time has come to prepare for this eventuality and to learn more in order to prepare for what we should now conclude as real.
The Islamic population explosion and immigration impact will certainly change the world as we know it. These ramifications will be felt in the fabric of all social, political, economical and spiritual life worldwide. I have no doubt that almost every financial advisor will deny it, ignore it, or make light of it. Yet, I believe that these demographic changes will dramatically-impact every single investor. By the time that the “crowd” on Wall Street inevitably begins to factor this dramatic effect into their projections and investment plans, vast numbers of events will have already occurred or will have been set into motion. And those, who are not in front of this, will pay dearly for their unpreparedness.
Since the Islamic people have a different approach to interest (both on lending and on savings) and investing, failure to understand their principles could be costly to an investor who will participate in financial markets that will inevitably be a combination of Western and Islamic investment approaches. The following link will provide a glimpse of the Islamic financial perspective that is currently employed in the Islamic countries: http://muslim-investor.com/principles. It is inevitable that some of these approaches will probably flow into the Western methodologies, which may offer profitable investment opportunities for those who elect to be ahead of the “crowd” on Wall Street. Because virtually all Americans have had no involvement or understanding about this new cold fact, they may find articles like this disturbing. If that troubles them, I can’t imagine when the reality of a part of the Islamic story, which they truly have no real grasp or ability to comprehend, becomes cold hard facts too.
The passions expressed during the great debates that have recently grabbed America’s attention regarding the proposed changes to the way it cares for itself medically has also finally awakened America to the extent of the social, political, economic and spiritual change has indeed been taking place, while many of us had paid little attention to it. I believe that this is why, suddenly, many Americans have become so aggressive in their concerns. It is as if they had fallen asleep in their lounge chairs only to awaken finding that the ocean has come roaring in, has suddenly swept them out to sea and they are now frantically paddling in hopes of getting back to the comforts and carefree lifestyle they once enjoyed.
My mother taught me that saying “I told you so” could make one very unpopular. But, many long-time readers know about my predictions to get out of the market in the weeks just prior to Black Monday, October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The very next day, that Tuesday, I changed my investment advice and I was encouraging everyone to buy equities because of the massive opportunities that became obvious. My long-time readers know about many other calls that were far-ahead of their time which generally elicited ridicule or disregard by the mainstream media and my fellow investment professionals. And, this “Holistic Investment” call may be another one of those times because no investment advisor is even considering, no less mentioning, the Islamic scenario.
I suggest that you also begin following Dr. Zuhdi Jasser, a Muslim-American and former physician to the US Congress. Dr. Jasser has produced a video that you must purchase called “The Third Jihad” (this is not some crazy right-wing video). Dr. Jasser offers a wealth of information critical to this “Holistic Investment” discussion and is even recommended by former New York City Mayor Rudy Giuliani, who called that video “A wake-up call for America.” Here’s the link to a 12-minute trailer: http://www.thethirdjihad.com/12min.php
Please understand that this discussion is neither a religious statement nor a political statement. I am strongly asking you to consider the “Holistic Investment” strategy and to prepare for the “Islamic Impact” that is certainly and unavoidably in our future.