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1994

Major League Baseball had a tough year in 1994 due to a strike by the Major League Baseball Players Association. The strike caused the cancellation of the World Series, the first time since 1904. It was a bad year for baseball and a lousy one for investors.

Are You Content?

We are a people in pursuit of more. If it’s bigger, better, or faster, then we must have it. Social media allows us to view the good life of others in real time and this is causing angst for many.

Timing

Timing is everything.

Justify won the 150th running of the Belmont Stakes to capture the Triple Crown with a winning time of 2:28. If Justify had raced Secretariat in the 1973 Belmont, he would’ve lost by 4 seconds.

A Stock Picker’s Market

The panelist on CNBC’s Halftime Report today mentioned we’re currently in a stock picker’s market. A stock picker’s market is one where money managers actively pursue strategies that will outperform the indices. They’ll try to cherry pick winners and avoid losers by employing several techniques such as charting and timing.

Frozen TV Dinners

Americans dined on TV dinners from Swanson’s during the ‘60s and ‘70s. Parked in front of a TV while eating a balanced meal on a wobbly TV tray was quick, convenient and efficient. These pre-packaged meals freed up time in the kitchen, so families could spend some “quality” time together while watching Mary Tyler Moore, Happy Days, or Bonanza.

You Can’t Keep A Good Asset Down!

Investors wrenched $227 billion from equity mutual funds from July 2015 to January 2016 before the Dow Jones Industrial Average climbed 54%.  In January 2018 investors poured $39 billion into equity mutual funds before the Dow Jones fell 12.25%[1]

What is Asset Class Investing?

Investors can invest for growth, income or preservation. The three asset classes that fit this bill are stocks, bonds and cash - stocks for growth, bonds for income, and cash for preservation. Since 1926, stocks have returned 10.2%, bonds 5.5%, and cash 3.4%. Inflation during this same time frame has averaged 2.9%.

Remember the Potentiometer!

During college, my friends and I figured out how to get rich. We were going to purchase assets at 50 cents on the dollar and then sell them for $1. We attended auctions to bid on items like office furniture and filing cabinets at discounted prices. The challenge, however, was everybody else in the room was doing the same thing.

The Third Rail

The Social Security Administration recently announced they’ll dip into their reserves to make ends meet because costs are exceeding income.

Charlie and the Chocolate Factory

In Roald Dahl’s great book, Charlie and the Chocolate Factory, people around the world are in a feeding frenzy eating their way through Wonka Bars in hopes of finding a Golden Ticket. A holder of a Golden Ticket will get access to Wonka’s Factory to experience the inner workings of his mysterious operation and receive a lifetime supply of chocolate.

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