Winning the Investment Game
by Steven Barr
Author: James H. Gipson
In Winning the Investment Game, James Gipson takes a macro look at the economic trends of the last
half of this turbulent 20th century. Three types of economic matter are used as models: Positive sum, zero
sum and negative sum economies.
Gipson defines a positive sum economy as one characterized by price stability and real growth, an
environment in which common stocks do well. Bonds, cash and tangibles tend to lose in real terms
against more attractive alternatives.
In a zero sum economy, a loser exists for every winner. New wealth is not accumulated by the creation
and expansion of productive business. Rather, existing wealth is shifted around. The winners make
inflation work for them, while the losers cannot and are hurt by inflation. Most common stocks lose value
in real terms, but real estate, gold and other tangible assets appreciate.