In his recent article in Harper’s Magazine, Kevin Phillips takes a good hard look at government economic numbers (a la John Williams) and concludes that – surprise, surprise – the numbers are skewed to serve political goals.
This is not news to many readers, but this piece is still worth a review, as Kevin paints a clear story about the history of gov’t tinkering in our favorite economic stats.
Bottom line is that keeping an eye on the “real” picture, rather than the picture our gov’t paints for us, gives us a huge advantage in our trading. I believe that sadly, your average investor believes, in large part, what the gov’t tells them. And that’s why your average investor doesn’t make any money.