A Review of Crashproof Prosperity

Posted in MLM Reviews

Just Another “Backtesting” Technique,
or the Real Deal?

CRASHPROOF PROSPERITY: When I first got wind of a subscription service touting not only an education on investing, markets and economy, but also a documented track record of several stock picks returning anywhere from 500 to over 1400%, the first thing that caused me to raise an eyebrow was the cost. Not completely unique in concept, the program boasts a very reasonable subscription fee was an immediate red flag.
We’ve all experienced a “get what you paid for” moment, haven’t we? (Well, I have.)

In comparison, most newsletter-based subscriptions… especially those with which “face time” is available by way of personal guidance on the part of the author, are generally far more expensive. So a person’s (and my) natural skepticism would be predictable. Undoubtedly, this was some sort of person or team who was smart, and good at what they do. I wasn’t looking to refute that. However, there is no shortage of those either. Unfortunately, many newsletters or “pick” systems boast a seemingly amazing, unachievable record based off a fancy word they’ll throw at the uninformed called “backtesting”. So was this simply another promise based on “what could have happened” science.

BACKTESTING EXPLAINED

For those newer to stock picks, backtesting is a technique wherein a strategy is tested (in theory) by applying it to historical data. This technique has been used for decades to study weather patterns and various social and natural sciences.

In 2010, a prominent futures and stock trading trade publication credited Louis B. Mendelsohn with being the first person to use backtesting in trading software for the personal computer. Indeed, the technique is useful in determining possible vulnerability where a future course of action is concerned. But that’s where the “confidence” should end.

Many “stock picking experts” will entice new traders into subscriptions- some costly- by boasting incredibly successful backtesting studies. In effect, the company is telling the prospect, “See? This is what would have happened had you invested our stock picks in the past.”

And although there are many companies today who have a loyal list of rather “uninitiated” subscribers (read: beginners or “casual” traders), there is a very important fact lost on most all of them:

Backtesting is a common and methodologically accepted approach to research, however a high or successful correlation between a backtested strategy and historical results can never prove a theory correct, since past results do not necessarily indicate future results. In other words, things are always changing,
and backtesting can only suppose about the past; not the future.

Even casual traders should be concerned less with “what could have or should have happened” and more with whether a company is using sound strategies to determine what is going to happen next.

CAN PROSPERITY REALLY BE CRASHPROOF

A simple video introduction to the program defined the term “Crashproof Prosperity” as, essentially, being able to create, maintain and even continue to grow wealth in spite of unstable or, especially, unfavorable market conditions. Nowhere was the term “backtesting” used. Had it been, I would have been on my way directly, having already had experience with the word I don’t choose to repeat.

Now, where backtesting was NOT mentioned, neither were the seemingly rock solid strategies that have returned documented picks of 500, 700 and even 1400%, according to the CP team.

Sound too good to be true? I concur. But what caught my eye was the word “documented”. So apparently, these picks are archived, and can be shown to have taken place- no “would have-could have” claims. Score one for CP.

Additionally, the program aims to educate the subscriber rather than simply throw stock picks at them. Acknowledging that not all winners are picked straight off Wall Street, CP’s goal is to inform the subscriber on topics of real estate, unemployment issues, and even U.S. and global economies, and how they directly affect markets, almost without fail.

Score another for CP. Most “pick” sources send little more that actual stock symbols with an occasional “news letter” that often simply regurgitates the week’s financial news.

If GERALD CELENTE IS IN, THEN SO AM I

CP claiming to have the best “trend forecaster in the world” on it’s team sent me to Google. After all, I wasn’t even aware there was such a thing. The name that comes up far and away over any other is Gerald Celente. To save you the time, a quick search of HIS name lets you know that we are far past the world of “might have” picks. Celente, the founder of the Trends Research Institute, has apparently been interviewed by, well… everyone… and is considered by most every major news and finance outlet in the world to be “the most trusted man in trend forecasting “, having forecasted some of the most relevant events in financial and geo-politic history for the last 25 years. Now I’m not going to admit to know a lot about him, or the concept, but Google showed me enough to further peak my interest in gaining access to what this guy knew.

KIP HERRIAGE- A NAME YOU NEED TO LEARN

By now, I’m in, and I’m confessing that I’ve made the purchase. I am now a loyal subscriber to Crashproof Prosperity. It’s only after looking more closely that I learn that one of the other key players is a former Wall Street power player named Kip Herriage. Why haven’t I ever heard the name?

I’m not really concerned, because further digging around into my new program reveals that Kip is, in fact, the name behind a staggering amount of the picks returning seemingly atmospheric profits. His resume boasts the honor of being the youngest person (at the time) to ever hold the position of VP for Oppenheimer Funds, where he managed, at the age of 27, over 70M dollars in assets and took 7 companies public.

In an age where Wall Street-created riches often beget greed, Kip, becoming disenchanted with the vicious circle of the only the ultra wealthy becoming wealthier while most small investors didn’t stand a chance on Wall Street, left the company to form a consulting company, valued at 100M dollars in just 6 years, devoted to teaching the average person about the creation of wealth while using his network and forecasting ability to provide suggested moves and picks on the part of the investor in his Vertical Research Advisory newsletter.

VRA? Let the research continue (for me- I’m trying to save you some effort). As it turns out, the VRA was, for some time, only available to elite hedge fund managers in Herriage’s network, at a cost of several thousand dollars, for years. Even after finally making the VRA available to his company’s members, the annual cost hovered at around 4K dollars per year. In spite of a seemingly hefty price tag, simple researching showed that the VRA’s picks did, in fact, return profits averaging over 100% per year since 2002. And surprise- no backtesting anywhere. These were actual picks that returned actual profits- some of which, individually, made average folks who followed VRA guidance, actual millionaires.

I’ll close out this review with a few more tidbits for the person investigating Crashproof Prosperity. There are a few other names tied into the team who give their personal time and guidance to the subscribers- namely Wayne Allyn Root- a 2008 Vice Presidential nominee. As it turns out, Mr. Root, or WAR, as he’s commonly referred to, made quite a name for himself as an entrepreneur long before delving into politics.

As well, for those interested in the angle, the CP team includes an Internet/SEO expert to personally advise members who may be interested in marketing the program for a comparatively high commission where the average affiliate reselling program is concerned- over 50%. Sounds like I might look into marketing next. But for now, Crashproof Prosperity, with everything I’ve come across, seems like the real deal.

You can check Crashproof Prosperity out yourself here –> Wealth Management

And although I spent a lot of time digging around and investigating names and methods involved, I would always encourage a person to practice their own due diligence.

Or… go ahead and borrow mine> ; ) CRASHPROOF PROSPERITY