Your Survival Guy has a client whose grandfather left him some money. That was nice. But the real gift was how his grandfather would teach him about money when they were together. How to roll pennies, nickels, dimes, and quarters sitting on the floor and talking. Adding up the pile and feeling the weight in their hands. The boy was taught what interest was, how it was paid, and the miracle of interest on interest. Compounding small amounts into larger ones. The small talk never felt like big life lessons. But they were. As they got older, the money did too—a dollar wasn’t worth a dime—but … [Read more...]
Archives for September 2023
India Choose to Promote Coastal Trade. The US Should Too
Trade in the United States is disjointed by a rule that is meant to promote the American shipbuilding industry but instead hurts all the others. The Jones Act demands that trade traveling from one port to another in the U.S. must travel on ships built, owned, and operated by U.S. citizens or permanent residents. Since the American shipbuilding industry isn't competitive compared to those in other places in the world, the Act severely limits trade between ports. For instance, no liquified natural gas ships are built in the United States, so despite the massive amounts of LNG exported from Texas … [Read more...]
“No Way I’m Spending That Much on Those”
Your Survival Guy and Gal were in Boston this weekend, visiting our daughter and son. If you want to know what stagflation feels like, have two kids in college at the same time. Many of you know exactly what I’m talking about. Take, for instance, after breakfast, strolling down Newbury Street window shopping. The next thing you know, Your Survival Guy’s in a store bombarded with loud thumping music and glowing displays of sneakers. “Oh, I remember those from the 70s,” I thought to myself, “Those are Chuck Taylors.” Flipping them over to look at the price was a shock. “No way I’m spending … [Read more...]
The War Machine’s Manpower Problem
No, I'm not talking about the U.S. military's failure to recruit its intended numbers of new servicemen, but the labor shortages plaguing the military-industrial complex. The Pentagon and Washington, D.C. would like to throw billions of American dollars into producing new drone aircraft of all shapes and sizes, but there simply aren't enough Americans with the know-how or desire to build them all. Doug Cameron reports for The Wall Street Journal: The Pentagon wants to acquire thousands of drones over the next two years that can fly to their targets, confuse radar, overwhelm enemy defenses, … [Read more...]
Profits Becoming Elusive in China
American companies are pulling back on investments in China as profits in the nation are becoming elusive. Yuka Hayashi reports in The Wall Street Journal: China has become a much tougher place to make money for American companies, a new survey found. Escalating bilateral tensions are affecting various aspects of U.S. companies’ operations in China, including losses in sales, declines in profits and canceled or delayed investments, according to a survey of the U.S.-China Business Council’s member companies. The ratio of companies expressing a pessimistic outlook on their China … [Read more...]
“You Didn’t Eat That Again, Did You?”
As Your Survival Guy, I understand the immense pressure you’re under to “do something.” Everyone’s got a plan of what to do with your money. I know this not because you tell me what they’re telling you, but just from experience. I know, for example, when you’re asking me, “Why are we holding this position?” It’s usually the one that’s down the most. That’s human nature. But instead of looking for the exit, sometimes it’s positions selling at a deep discount that deserve additional money. I know you’re being tempted. I see the attractive teaser rates, annuities that promise a lifetime … [Read more...]
Your Survival Guy Fishing with Dolphins
Your Survival Guy was fishing this summer and came into these pods of bottlenose dolphins. You can see some of the famed Newport mansions in the background. Best viewed on a mobile device. Originally posted on Your Survival Guy. … [Read more...]
The Single Worst Market Timing Event in History
Attempting to time the market could be the most popular mistake among market participants. Here’s what I wrote about market timing back in January 1997: Panic!... History has been made. Since the exact summer Dow low of 5346.55, the Dow has soared an amazing 21.9%. Never in stock market history has the Dow added 1,000 points so fast. As a cap to the monster four-month surge, the Dow Jones News Service headlined a lead story with, “November Point Gain Was Largest Ever for the Dow.” To anyone who was foolish enough to sell stocks in front of this tidal wave, the bailout goes down, in terms … [Read more...]
Government Intervention Begets More Intervention
At the Cato Institute, Travis Fisher explains how government intervention in the energy markets will demand more money and ultimately cost taxpayers more than they would have paid if the government just kept out of the energy sector. He cites Ludwig von Mises, who noted in A Critique of Interventionism that "In a private property order isolated intervention fails to achieve what its sponsors hoped to achieve. From their point of view, intervention is not only useless, but wholly unsuitable because it aggravates the "evil" it meant to alleviate…. If government is not inclined to alleviate the … [Read more...]
Wellington and Wellesley Funds Not Managed by Vanguard
In my conversations with you, we talk about the virtues of being a balanced investor. You can achieve this through a mix of blue-chip dividend payers and laddered bonds. To illustrate, I’ll use as a proxy Fidelity Balanced, Vanguard Wellington, and Vanguard Wellesley funds. In that order, they have roughly the following stock/bond allocation mix: 70/30, 60/40, or 40/60. (Note: Wellington and Wellesley are managed by Wellington Management in Boston, MA, not the Vanguard Group.) For more, read the P.S. below. With the Federal Reserve deciding to hold rates steady yesterday—they’ve made … [Read more...]
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