Contents

Acknowledgments

Introduction

Part I: Aftershock

Chapter 1: Bubblequake and Aftershock—A Quick Review of How We Got Here and What’s Next

You Are Not Asleep with the Sheep

Bubblequake! First a Rising Bubble Economy, Now a Falling Bubble Economy

From Boom to Bust: The Virtuous Upward Spiral Becomes a Vicious Downward Spiral

Why Don’t Most Conventional Investors See This Coming?

What’s a Savvy Aftershock Investor to Do?

Chapter 2: Since We Last Spoke . . .

Ignoring the Massive Money Printing (the Dollar Bubble) Is a Key Goal of the Cheerleaders

Potential Triggers That Could Accelerate a Downtrend in the U.S. Economy

A Closer Look at the Current U.S. “Recovery”

Bottom Line: “Recovery” Is Still Driven by Massive Borrowing and Massive Money Printing

Our Investment Outlook

The 2012 Presidential Election

In Conclusion

Chapter 3: Conventional Wisdom Won’t Work This Time

The Key to Conventional Wisdom: The Future Will Be Just Like the Past

The Myth of a Natural Growth Rate

Real Productivity Growth Is Slowing Down, Here and Around the World

Warren Buffett: Master of Conventional Wisdom

The Key to Aftershock Wisdom Investing: The Future Is Not the Past!

This Debate Is Really Not About Inflation or Deflation, It’s About Protecting the Status Quo with Denial

How to Invest in a Falling Bubble Economy

What’s a Savvy Aftershock Investor to Do?

Part II: Aftershock Investing

Chapter 4: Taking Stock of Stocks

Love Story: How Stocks Became the Heart of Most Investment Portfolios

How Are Stocks ...

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