THE BLOG
12/14/2008 05:12 am ET Updated Dec 06, 2017

The Tao of the Dow

I
The Dow that can be named
is not the eternal Dow
It is the Industrial Average
All things arise from the Dow
The S&P 500, the Russell 2000,
the Wiltshire 5000
It is the Great Mother of all indexes

II
Rising and falling is the essence of Dow
Stand before it and there is no beginning
Follow it and there is no end
Try to grasp it, and it drops more than 700 points
in heavy trading

III
Advances and declines arise together
Highs and lows rest upon each other
Bear follows bull
Bust follows boom
This is the Eternal Way
But few investors understand its essence

IV
The ancient Master
Is one with the Dow
For want of a better name
We call him Bernanke
The Master
lets interest rates fall like rain
quarter point
quarter point
half point
Where will it end?
Mystery of mysteries

V
That which expands
Can be shrunk
That which is strong
Can fail
That which is raised
Can be cast down
Just ask Lehman Brothers

VI
The wise investor does nothing
Content to observe the Dow as it rises and falls
Over-sharpen the blade, and the edge will soon blunt
Amass a store of credit default swaps
and nothing can protect you

VII

Being fully mindful
Can you be as a first-time investor?
Cleansing the vision
Can you be without stain
As though viewing Jim Cramer with new eyes?
Understanding and being open to sudden downturn
Are you able to accept your fate?
This is the Primal Virtue

VIII
The 30 industrials blind the eye
The 30 utilities deafen the ear
The 30 transportations dull the taste
The 30 brokers insist there's nothing to worry about
The racing bull maddens the mind
And chaos is loosed upon the market
Better to become one with nothingness
Like Bear Stearns

IX
Accept disgrace willingly
You bought Fanny Mae at 47?
What were you thinking?
Accept misfortune as the human condition
Do not be concerned with loss or gain
Even when your spouse starts asking
where all the money went

X
The ancient investors were subtle, mysterious, profound
They knew the wisdom of buying and holding
The ten thousand stocks rise and fall
while the Self watches their return
Knowing this, you will attain the divine
Being divine, you will be at one with the Dow
And though the body dies, your portfolio will survive
Thus, the Dow will never pass away

XI
Knowing the market is wisdom
Knowing the self is enlightenment
Mastering others requires force
Mastering the self requires strength
He who knows he has enough is rich
He who doesn't know
Is stuck with a lot of derivatives

XII
A superior athlete leaves no tracks
A superior speaker makes no slips
A superior broker stops calling when you're tapped out
When the way of the Dow is forgotten
Speculation and irrational exuberance arise
The root of all suffering

XIII
Do you think you can take over the market and improve it?
I do not believe it can be done
The Dow is sacred
You cannot improve it
If you try to change it, you will ruin it
If you try to manipulate it, you will go to jail
Unless you have friends in high places

XIV
Without going to Wall Street
you may know the whole world
Without stepping onto the trading floor
you may see the ways of the market
The more you invest, the less you know
Therefore the truly wise investor dwells on what is real
and not what is on the surface
The fundamentals
not the closing price

XV

Those who know
do not talk
Those who talk
do not know
Therefore, avoid financial message boards
Give up easy profit
And it will be a hundred times better for everyone
Buy and hold
That is the Eternal Way

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