Separating previous perception from current reality is the first step in understanding world markets. For example, the long-standing perception that the US is the world’s economic superpower versus the new reality that it is in rapid decline, indicated by the fact that oil is now being sold in Euros and Yen rather than only US dollars.

In context of history’s lessons, my philosophy is always to take a forward-looking approach to investing rather than rely on funds or companies that have done well in past returns. For example, many portfolios today are based on performance measured at a perceived inflation rate of about 3%, while current inflationary rates have, in reality, already soared to about 9%.

I do what many are not willing to do: taking a hard look at an outlook that may seem gloomy, and then recognize and act upon the coming trends with the insight that history has given us. Through experience I have learned that the coming downturn is simply another dip in the global economic cycle. The period of rebalancing will mean pain to most, but profit potential to a smart few.

As performer and businessman Jimmy Dean once said, we can’t control the wind, but we can adjust our sails.