Maximum Pessimism Investment Corporation

Maximum Pessimism Investment Corp.,

Prosper While Others Panic

Sign

OVERVIEW

Simplicity is the axiom of success.  History proves that simple philosophies lead to large profits.  Our philosophy is based on the theories of two of the world’s most successful investors: Sir John Templeton and George Soros.   The fund will capitalize on what Sir John called Maximum Pessimism and what Soros calls Reflexivity.  The Chinese are fond of saying that Crisis or Danger exists in the face of Opportunity.

MAXIMUM PESSIMISM

Historically, markets perform best and yield maximum returns after (1) stocks crash and (2) when news is the worst. Our slogan is Profit while others Panic! While others focus on negativity, we focus on the opportunities that typically arise during a crash crisis.  The Chinese invented a simple equation: Crisis = Opportunity! Enclosed is a study on sector performance after steep declines on any sector in the stock market.

Average 3 year nominal returns when buying a sector down since 1920s:
Crash=Subsequent returns
60% = 57%
70% = 87%
80% = 172%
90% = 240%
Source:mabanefaber.com

REFLEXIVITY

When markets crash they tend to overshoot in one direction.  As George Soros states, “markets are reflexive by nature.”  They reflex in the reverse direction after shooting too far.  We will take advantage of extremes in sentiment by sensing a trend shift, moving in the opposite direction and exploiting the new trend.

TREND SHIFTS – EXPERIENCE

Mr. Skarica has experience in uncovering stocks that have been depleted by maximum pessimism but are on the verge of resumption from reflexivity. Examples include the following recommendations: (1) Tata Motors at $3.50 a share to his subscribers at the depths of the financial market in 2009, (2) Avion Resources at $0.06 in January 2009 and (3) Hellenic Telecom at $1.40 a share in the summer of 2012.  (All which climbed multiples of hundreds of percent).

CONCLUSION

We are value investors by nature. We are constantly looking for bargains in the stock market. What makes our fund unique is that while others are chasing returns, we will be opposing the herd. We look to prosper from markets that have gone too far in one direction. We will, simply, contradict the norm. We will buy companies that are dirt cheap, yet rooted in the foundation of the new trend.  Invest with us and simply profit.

Sincerely,

David Skarica
CEO Maximum Pessimism Investment Corp.,
242-422-0169   561-207-8726

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