A financial consultant presents a simple yet revolutionary approach to managing investments safely and responsibly in today’s high-risk environment. The risk of investing in the stock market has increased remarkably in the past couple of decades. We've seen tremendous volatility in stock prices, market bubbles and devastating crashes, a parade of corporate scandals, and proven deception by many so-called investment analysts employed by major brokerage firms. In addition, the realities of ever-increasing geopolitical risks contribute to an uncertain economic future. Corporate America and the investment industry have little to gain and lots to lose when investors decide to stop playing by their rules. But with this simple guide, readers will be equipped with both the strategy and the tools for success in virtually any economic environment while ending their participation in a system that has taken full advantage of their blind faith and misplaced trust. The risk of investing in the stock market has increased remarkably over the last decade. In this period we’ve seen tremendous volatility in stock prices, a market bubble and its subsequent pop, a parade of corporate scandals, the demise of a leading accounting firm and proven deception by many so-called investment analysts employed by major brokerage firms. In addition, the realities of ever-increasing geopolitical risks contribute to an uncertain economic future. Blind Faith offers a cleverly simple yet revolutionary approach for managing investments in this perpetual high-risk environment. Corporate America and the investment industry have little to gain and lots to lose when investors decide to stop playing the traditional game that can –and has – destroyed trillions of dollars of individual wealth overnight. Readers will be equipped with both the strategy and the tools for success in virtually any economic environment while ending their participation in a system that has taken full advantage of their blind faith and misplaced trust. Edward J. Winslow Jr. is the senior partner and founder of PM Investments and is one of the most creative and knowledgeable financial consult- ants in the country. He avoids traditional investments such as stocks and mutual funds while providing a unique strategy for building and safe- guarding wealth. Ed was the founder as well as chairman of First Affirmative Financial Network, the nation’s first broker/dealer to specialize in socially responsible investing. He was also founder and president of First American Financial Cooperative, the nation’s first cooperatively owned financial planning firm. INTRODUCTION BEYOND BLIND FAITH— THERE IS CLARITY AS A SOCIETY, we have placed our faith, hope, trust, and dreams in the upward movement of future stock prices. The wisdom of tying 50, 60, 70 percent or more of our financial net worth to this mechanism is based on the unquestioned underlying assumption that over the long run an investment in stock—a percentage share of ownership in a corporation—is the best place to put our money. As you will discover, this is a myth that we individual investors have come to blindly believe. As investors we have experienced the jubilation of a roaring bull market and the horrible carnage wrought by a grisly bear market accompanied by colorful corporate scandals. This occurred during a time when our retirement plans accounted for about half of the country’s traded stocks. Many investors feel “wiped out” by the experience and swear never to be fooled again. Yet others, who had a solid respect for the risk of tying their savings to the market, captured much of the tremendous gains of the late 1990s and gave little or none of it back when the bottom fell out in the early 2000s. These “protected” investors recognize that at times the market is a money-generating machine and at other times a destroyer of wealth. This simple realization, that the market can move dramatically and unpredictably both up and down, calls for an investment plan that works in this perpetual high-risk environment. This book lays out that plan. If unprotected against loss, an investment in stock or an equity mutual fund is nothing more than a gamble. Just as a 2fortunate few at the casino will walk away winners, while the majority of the players lose, the rules of this game favor the “house.” The people at the top rake in obscene truckloads of money in frenzied rising markets and even make carloads when the market is going down. Investors have every right to feel taken advantage of as they discover that the playing field was never level. High-profile corporate and accounting scandals provide a target for our anger and frustration as we attempt to make sense of it all. Despite everything that has happened, financial books, magazines, and advisers stick with the same old tired line: buy and hold stocks. We need a radical diversion from this traditional investment counsel. Blind Faith presents an unorthodox view that wi