Q: What do you think of Tony Robbins new “Money Master The Game” book? I was a little surprised his recommendations included gold and commodities.
A: As with most investment books there is a lot to recommend and a lot that will likely get investors in trouble. Without creating long lists of both, I will simply say his motivational info is good but a lot of his investment recommendations are inappropriate. The back testing of his recommended portfolio is a great example of data mining, of which his recommendations of gold and commodities are great examples.
As I have said in recent articles and podcasts, “It’s all about performance.” Of course it’s also “all about risk.” I don’t think the risk-adjusted return of his recommended portfolio will be as productive in the futureas many other well tested portfolios.