Thomas Blankenhorn

Twenty years as a stock trader, devised a new stock market system that is fair, highly stable, and not like the musical chair game we have now (sent to the SEC, members of Congress, and others since 2010), devised a modified proxy vote system to enable the many small shareholders a greater voice to bring down executive compensation, and devised a math based PEG ratio (for a three-year horizon - anything beyond this would be senseless to predict): P/(12E(1+G)^2). I hope S&P's Capital IQ adopts this robust PEG ratio formula as per my communications with them - the presently used formula was produced by a guess that SEEMED like it provided a useful metric but it is broadly a misapplication (the presently used formula is like saying multiplying two numbers is the same as adding them...it may look good enough when the numbers are close to 2 but deviates greatly as you move away from the number "2"). It just so happens that the popularly used PEG ratio formula works is because the growth rate is sometimes around 20%=0.20 and thus 12*(1+0.20)^2=17.3 ~ 20, but values away from this would thus be increasingly erroneous. The presently used formula does not use the growth rate as a percentage but a hundred times the percentage and just luckily appears to make sense for very conforming numbers but there is no mathematical foundation. Had there been a math foundation, the growth rate of zero and negative growth rates would not cause the model to foul up. I am a mathematician, philosopher, inventor/problem-solver among other things. I view economics as simply a low-level branch of applied mathematics. I stand for the truth and will not sugar-coat. You can be assured to get information from me that you will not get anywhere else.I recently started the youtube channel "Real Economy" to enlighten those who are mired in the propaganda spewed all over the place giving misconceptions of the actual economy, the stock market, and the wealth divide.

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Thomas Blankenhorn

Thomas Blankenhorn

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