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Ignore the boo hoo hoo media -Part 2

Part two of this three part article will elaborate on the ’smartism’ revolution, as well as investment ideas.

The current 2008 election front runners; mainly Hillary and Edwards try to appeal to the middle class’s sense of entitlement. They are misleading voters into believing the falsehood that they are entitled to:

1. Job security
2. Universal healthcare and inexpensive drugs
3. Retirement
4. An affordable college education
5. A livable wage

Contrary to the mantra of the candidates no one is entitled to any of the above, at least not in the smartist web 2.0 era which we are currently living in. All the problems that the middle class is facing as reported in the media; rising food prices, pain at the pump, outsourcing, increased college tuition, surging credit card debt, etc is a byproduct of the smartist era, and is the inevitable byproduct and consequence of irreversible, unstoppable technological and capitalistic progress. It is out of the power of any politician to reverse these processes. Since it is futile to try to resist this transition, you can try to profit off it instead.

What is the smartist era and who are the smarties?

The smartist era began in late 2004 and coincides with the boom in web 2.0/social networking as globalization and free markets superseding sovereignty. The affects of the smartist era the second dot com boom, hyper-capitalism, the growth of ‘information’ jobs, and the outsourcing of industrial jobs overseas. Other affects include increased immigration both illegal and legal, marginalization of the middle class, surging commodity prices, growing wealth gap, reduced job security, and rising food prices. Most of all the economic and social ills that politicians address can be attributed to the smartist revolution.

Since August of 2004, when Google went public gold has surged from $400 an ounce to over $890 as of January 8th, 2008. Gas prices have risen over 50 percent and oil has more than doubled.

The graph below illustrates this rise:

If you look more closely at the graph you can see that the slope began to increase markedly in the forth quarter of 2004, which coincides with the Google public offering and the beginning of the web 2.0 boom.

The ’smarties’ of the smartist movement include the entrepreneurs and knowledge workers who are the architects of the web 2.0/social networking revolution. Some examples are Steve Jobs, the Google founders, and Jimmy Whales of Wikipedia. A smartie can be more broadly defined as any person whose actions contributes to the smartist movement, regardless of their profession.

While negative headlines of recessions, rising gas and oil prices, rising unemployment, a housing slump, and a credit crunch cast abundant pessimism on investor sentiment, there is a silver lining, which is to invest in ’smarty’ companies and funds that are capitalizing on this new social and economic revolution. The three sectors I recommend investing in are internet technology, energy, and commodities.

Stay tuned for part three where I will list which stocks and funds to put your money in to capitalize on this revolution.

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