Current Commentary

3rd Quarter 2018 Commentary

Posted on Oct 9, 2018 in Current Commentary

2018 3rd Quarter Commentary PUTTING UP HAY IN THE BARN   As we approach autumn, many farmers are putting up hay. Farmers store hay because they know there might be a harsh winter, or a drought, when there might not be enough grass available for the stock. No one has ever been able to predict when the hard times will come, so farmers simply keep enough hay in storage to ensure they can get through a difficult time when it happens.   This same theory also works well with investments. In the investment business, “hay” = bonds, cash, and guaranteed income contracts. Just like the farmers, we...

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2nd 2018 Quarter Commentary

Posted on Jul 5, 2018 in Current Commentary

2018 2nd Quarter Commentary BITCOIN, CRYPTO-CURRENCY, & THE WILD, WILD WEST Crypto-currencies began to emerge during the banking crisis of 2008. Over time, Bitcoin has become the most popular crypto-currency. In the early days, Bitcoin owners would contact each other and meet at Starbucks to swap Bitcoin for cash. Since then, there have been several groups that have tried to organize online exchanges. The one currently handling the most Bitcoin is a company called Coinbase. In January 2017, one Bitcoin was worth $1000. By December 2017, one Bitcoin was worth $20,000. By February 2018,...

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2018 1st Quarter Commentary – ALARMISM SELLS!

Posted on Apr 12, 2018 in Current Commentary

2018 1st Quarter Commentary ALARMISM SELLS!   Yes, alarmism sells when you are trying to sell newspapers or air time on television and radio. However, it is not always helpful to us as investors. Lately, we are being told that we should be alarmed about the tariffs President Trump plans to impose against China. It is being referred to as the beginning of a trade war. China has a long history of hacking into companies in the United States, stealing trade secrets, and placing restrictions on us. On Wednesday, 3/21/2018, the Dow closed at 24,682. On Thursday, 3/22/2018, the Dow dropped 725...

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2017 4th Quarter Commentary – “IT’S THE ECONOMY, STUPID!”

Posted on Jan 15, 2018 in Current Commentary

2017 4th Quarter Commentary “IT’S THE ECONOMY, STUPID” Bill Clinton, 1992 During Bill Clinton’s first run for President in 1992, his campaign slogan was, “It’s the Economy, Stupid.” It was a good campaign strategy. In general, if the public is experiencing a prosperous economy, they tend to want to stay with current leadership. However, if they are suffering economically, they tend to want to change leadership. It could be said that the phrase is also applicable to investing. Since 11/08/2016, the Dow Jones Industrial Average has risen from 18,332 to 24,837. This is an incredible surge of...

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2017 3rd Quarter Commentary – THE GOLD RUSH!

Posted on Oct 11, 2017 in Current Commentary

2017 3rd Quarter Commentary THE GOLD RUSH! In 1849, gold was discovered in California. Back east, the media picked up on it and began to publish stories about people getting rich overnight in the California gold fields. As a consequence, thousands of people sold everything they had, pulled up stakes, and crossed the great American continent in hopes of striking it rich! A few of them made it, but many of them lost everything, including their lives, in search of the gold about which they had heard. Today gold is not being sold by using a “strike it rich” story. It is being sold on fear. Over...

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2017 2nd Quarter Commentary – WHAT IN THE WORLD IS “WANNACRY” RANSOMWARE?

Posted on Jul 18, 2017 in Current Commentary

2017 2nd Quarter Commentary – WHAT IN THE WORLD IS “WANNACRY” RANSOMWARE? In 1988, the first computer plague was developed – a small program written as an experiment by computer scientist, Robert Morris, Jr. This plague, or worm, effectively shut down the internet. This was done inadvertently. In a more recent development, cybercriminals are beginning to attack via ransomware and Bitcoin. Using malicious content, the hacker infects your computer and encrypts its contents. The hacker then demands that you make a payment via Bitcoin in order to get your computer information...

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