A New Year's Resolution That Will Last a Lifetime | | Washington Wants Control Over Your Money. Here's How to Opt Out. The Federal Reserve printed $4.8 trillion in 3 years. Your savings account pays 0.5%, inflation runs at 8%. The math doesn't work in your favor.
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While everyone else is asking the government for permission, start becoming your own bank today. | | | "Yesterday, everybody smoked his last cigar, took his last drink and swore his last oath. Today, we are a pious and exemplary community. 30 days from now, we shall have cast our reformation to the winds and begin paving hell with them as usual." -- Mark Twain (1863)
Happy New Year!
When I looked back over the years of writing the Skousen CAFÉ, it looks like I've never published a column on New Year's Day. So this is a first.
So, why not write a column on New Year's Resolutions?
Unfortunately, the Mark Twain quote above is all so true.
Studies show that most New Year's resolutions tend to last only a few months, and only a small percentage persist for a full year (under 7%).
Ben Franklin Resolved to Adopt Good Habits but Failed
Benjamin Franklin is a good example of how difficult it is to improve your life and overcome your weaknesses.
In 1726, at the age of 20, he decided it was time for him to change his life for the better, and took on the ambitious task of "achieving moral perfection" through a structured self-improvement program.
It was another first for Franklin, considered by many as America's first motivational guru.
He came up with a dozen virtues to live by: Temperance, Silence, Order, Resolution, Frugality, Industry, Sincerity, Justice, Moderation, Cleanliness, Tranquility and Chastity.
He added "humility" as the 13th virtue after a friend told him he was known to be arrogant. "Imitate Jesus and Socrates," he wrote.
He created charts in a little book to track faults in each of the 13 virtues, focusing on improving one per week.
In his Autobiography, written decades later, he confessed that it was almost impossible to live up to his high standards. Breaking old habits was tough. For example, he wrote, "My scheme of order gave me the most trouble... I found it extremely difficult to acquire." He called it his "unfinished project."
Chastity was another virtue he had a hard time living up to. He cautioned, "Rarely use venery but health or offspring, never to… injury of your own or another's peace or reputation."
But all was for not. Indeed, a few years later, in 1729, his "hard to govern" passions led him to sire an illegitimate son, William. A year later, he entered into a common law marriage with Deborah Read, admitting, "thus, I corrected that great erratum as well as I could."
Today's Most Common New Year's Resolutions
The most common New Year's resolution are: - Save more money
- Exercise more/improve fitness
- Eat healthier/lose weight
- Spend time with family
- Focus on personal growth: go back to school, attend church regularly, etc.
The big question is: Are there ways to improve your chances to keep your New Year's resolutions beyond a month or two?
The answer is yes -- by developing a systematic approach that strongly encourages you to keep going.
For example, if you are resolved to go on a diet and exercise program, the best solution is to hire a personal trainer. It's not good enough to join a fitness club. You need to someone who will constantly pressure you to succeed over the long run.
'Automatic Investing' Really Works
Here's another example: Suppose you have a goal to save and invest more money. Here's a formula I've used myself to great effect.
For years, I've recommended a simple strategy called "Automatic Investment Plans" (AIPs) that really works. Banks, insurance companies, brokerage firms and your own employer offer them.
In business, it's known as "automatic withholding" or "dollar-cost averaging." Funds are taken out of your paycheck to pay your taxes, medical insurance and 401(k) plan.
Suppose you start the year with a New Year's Resolution to save and invest more money. You promise you will withdraw a small amount, say $500 a month, from your checking account, and invest the money in the stock market through your online brokerage account.
That means you have to make the decision to write a check to your brokerage account 12 times a year.
Not surprisingly, most people discontinue their savings program after several months. Some unexpected expense comes up, and you stop writing that check. No matter how determined you are to add $500 to your saving or investment account, it's almost impossible to keep going. There's always an excuse to quit.
However, if you sign up for an automatic withholding system from your salary/wages or from your checking account to go into the stock market, you are more likely to succeed.
Why? Because you make only ONE decision, not 12 decisions in a year. As a result, you are likely to keep your New Year's Resolution in tact. You are not likely to discontinue the AIP, even if you are hit with an unexpected expense. It's just too much trouble to contact your employer or your brokerage firm to discontinue the program. It's too much of a hassle, so you don't do it. | | The biggest opportunity of my 50-year career? In 1995, I called for the NASDAQ to double and then double again right before it shot up370% in the dot-com boom.
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You will also be amazed how quickly your new investment plan adds up. If you invest $500 per month into the S&P 500 for 40 years at a 10% annual return rate, you would have an ending balance of over $2.5 million! (See chart below.)
There are three ways that your AIP grows and grows and grows: - You are adding to your investment account every month.
- Your stocks and funds usually pay dividends, which are automatically reinvested in your account.
- Your stocks and funds are likely to show capital gains over the long run.
And all this accumulates tax free if you have a 401(k) plan, SEP or IRA.
You'll be a millionaire in no time.
That's why more companies are encouraging employees to sign up for a 401(k) plan, which allows them to automatically become wealthy when they retire.
As a young father years ago, I set up AIPs for each of my five children, and everyone was amazed how quickly their investment grew.
AIPs are a great estate planning tool, a meaningful way to transfer money to your children and grandchildren before you die. It's a far better gift than a lump sum inheritance in your last will and testament.
Resolved: Make it easy to save, and hard to quit. AIPs are the solution.
I have a large section of "The Maxims of Wall Street" focused on "Saving, Investing and Spending" (pp. 19-29), including my "Rich Man's Pearl of Wisdom #1: Story of a Rich Doctor," which demonstrates the power of AIP plans.
Kevin O'Leary Endorses 'The Maxims of Wall Street'
"Getting rich is easy if you follow three simple rules: spend less, save more and invest the rest." -- Kevin O'Leary, "Mr. Wonderful" on Shark Tank (p. 24)
"Two of the hardest things to do is save when you are young and spend when you're old." (p. 19)
"Any man can earn a dollar, but it takes a wise man to keep it." -- Russell Sage (p. 24)
Be sure to read "A Rich Man's Pearl of Wisdom #3: 'I Make Money While I Sleep!" on pp. 185-188.
What Others Are Saying
"If you follow these sayings, your profits will soar." -- Hugh Grossman
Hugh Grossman, co-editor of Eye on the Market, is a big fan of "The Maxims of Wall Street."
In his latest newsletter, he writes, "Fellow Eagle Financial Publications guru, Dr. Mark Skousen, just released his 12th edition of 'The Maxims of Wall Street'. I am humbled and honored to be mentioned in his latest edition with a few of my quotes, alongside some of the greatest traders and investors of all time. The first time I read Dr. Skousen's 'Maxims', I simply could not put it down. I rarely, if ever, promote others but this book is definitely worth the read and I highly recommend it. Catapult your success and learn well these adages. They may well improve your score."
Here is a list of some of Hugh's favorites found in the new edition:
"A dime at a time is just fine!" In the options world, if you're up a dime, take it and wait for the next setup.
"Knowledge is knowing how to trade. Wisdom is knowing when to trade. Experience is knowing when not to trade." Not all setups are good; you have to be able to identify the true high potential trades.
"It's not where the stock is or has been, it is where it is going that is important."... borrowed from "The Great One," hockey player Wayne Gretzky's playbook.
"When in doubt, stay out." Ensure you have a real reason to be in a trade, not just because you can.
"The stock market is not the enemy; your adversary is the person in the mirror." Review the day's charts to see the many opportunities the market provided on any given day.
"Some days you're the dog, other days, you're the hydrant." Losses are inevitable; accept them gracefully and move on.
"There are old traders and there are bold traders, but there are no old, bold traders."... another twist from an aviation maxim.
"Good traders know how, smart traders know why."
"Sometimes you have to go out on the limb as that's where the fruit is." The greater the risk, the greater the reward. | | Your 48-Hour Market Forecast Every trading day presents critical momentum windows, but the difference between profit and loss comes down to your timing and your tools.
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The new hardback 12th edition of "The Maxims" is still a bargain, only $22 for the first copy ($12 for all additional copies), substantially below the retail price of $27.95. To buy, go to Skousen Books at Discount. I autograph all copies, date them January 1, 2026 and mail them at no additional charge in the United States.
For those who wish to buy an entire box (32 copies), the price is discounted even more: $337 (only $10.50 each). Heddy Green said it best: "When I see a good thing going cheap, I buy a lot of it!" (p. 36).
Another New Year's Resolution: Come to the World's Fair of Liberty!
Announcing THE WORLD'S FAIR OF LIBERTY!
Please make another New Year's Resolution to attend FreedomFest, which we are calling THE WORLD'S FAIR OF LIBERTY. It will change your life!
It's set for July 8-11, 2026, at Caesars Forum Convention Center in Las Vegas.
What better place to be to celebrate the 250th anniversary of two historical events that changed the world: The publication of Adam Smith's "The Wealth of Nations," the declaration of economic independence on March 9; and Thomas Jefferson's declaration of political independence on July 4.
Join Steve Forbes, John Mackey and Kennedy (Fox News), along with thousands of others, as well as all the major free-market think tanks and freedom organizations, in this incredible 3 ½ days at the five-star Caesars Forum Convention. Enjoy the Anthem Film Festival, the Trade Show for Liberty, the Punch Up Comedy Show and many other events.
The price is only $400 while they last. Don't delay. To register and get more information, go to www.freedomfest.com, or call Hayley at 1-855-850-3733, ext. 201.
Upcoming Appearances
AEA Meeting in Philadelphia, Jan. 3-5: I'll be in Philadelphia this weekend and hosting the AEA Debate Session on Milton Friedman, Sunday, Jan. 4, at 8-10 a.m. ET at the Philadelphia Marriott Hotel, Grand Ballroom Salon B (the largest). C-SPAN is recording this event!
The sparks will fly. My topic is "My Friendly Fights with Milton Friedman." The other panelists are: Jeremy Siegel (Wharton School) on "Milton Friedman's contributions to financial markets and the influence of money on the business cycle."… James K. Galbraith (UTexas at Austin) on "Milton Friedman's Critique of Keynesian Economics and Fiscal Policy: A Response" (He is the son of John Kenneth Galbraith, Friedman's nemesis at Harvard!)… Michael Bordo (Rutgers University): "The Future of Monetarism After Friedman: What Works, What Doesn't."… and Judy Shelton (Independent Institute): "Milton Friedman and Robert Mundell: Who Won the Nobel Money Duel?"
If you would like to attend this exciting event, go to https://www.aeaweb.org/conference/. Tickets are only $290 per person and $120 for students for this three-day event.
Celebrating Ben Franklin's Birthday, Saturday, Jan. 17: Reason Foundation is hosting my talk and book signing of "The Greatest American" at its headquarters, 5737 Mesmer Ave. in Los Angeles, 2-5 p.m. PT. Refreshments will be served. This event is free, but you need to register at https://reason.org/event/ben-franklin-genius/. This will be a great occasion to begin celebrating the 250th anniversary of our nation's founding. See you there!
It's going to be a great 2026. Happy New Year!
Good investing, AEIOU,
Mark Skousen
Doti-Spogli Endowed Chair of Free Enterprise, Chapman University
Wikipedia
Newsletter and trading services
Personal website
FreedomFest | | Best Year Ever By Mark Skousen
Editor, Forecasts & Strategies
"I don't want a lot of good investments, I want a few outstanding ones." -- Philip A. Fisher ("Maxims of Wall Street," p. 197)
Kim Githler presents Mark Skousen with "America's #1 Economist" Award.
I'm happy to report that 2025 turned out to be the best performing return ever in my 45 years of writing Forecasts & Strategies. It's time to celebrate.
All 15 of my recommended stocks and funds were profitable last year, with single-, double- and triple-digit-percentage gains. I carefully selected an outstanding portfolio of stocks, tech funds, precious metals, commodities and foreign markets. Our average recommendation rose 34% last year, double the S&P 500 Index.
My Flying Five portfolio (which consists of five blue-chip Dow stocks) averaged a return of 45% -- three times better than the Dow Jones Industrial Average.
Even my favorite financial private equity stock had a double-digit-percentage gain, thanks to paying out 16 -- count them, 16! -- dividends paid out this year.
Energy prices declined last year, but not our two energy stocks, both of which had double-digit-percentage returns.
Bitcoin also fell in 2025, but our ETF that invests in companies involved in cryptocurrencies and blockchain technology, rose over 30% for the year.
Technology stocks had another good year, but our particular actively managed tech ETF handily beat out the Nasdaq index.
Last but certainly not least, I recommended two gold positions last year, and they did not disappoint. Gold itself climbed 60% in 2025, but not to be outdone, our mining stock, which produces both gold and silver, more than tripled in value -- a first in F&S history. This is the best performing gold stock in 2025, and it was in our portfolio.
Here's to another great year. | | | About Mark Skousen, Ph.D.:
 Mark Skousen is an investment advisor, professional economist, university professor, author of more than 20 books, and founder of the annual FreedomFest conference. For the past 40+ years, Dr. Skousen has been investment director of the award-winning newsletter, Forecasts & Strategies. He also serves as investment director of four trading services: TNT Trader, Five Star Trader, Low Priced-Stock Trader, and Fast Money Alert. | | | | | |
Visit our YouTube Channel - Eagle Investing Network
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