While tracking the market today, I expanded the S & P 500 graph time window
from the normal mode of a month or a year, to run from 1970 through the
present. What I found illustrates a fascinating principle of wealth building.
The blue line represents that value of the S&P 500 index. I overlaid the
bright pink line to show what would have been the normal path of the economy
had the trend from 1975 to 1995 persisted. Obviously it did not.
The period from 1995 to the present represents a time of unprecedented
“activity”. What we can also see is that activity produced no
sustainable, wide spread, wealth as right now the index has returned to its
Considering this period from 1995 to 2009 carefully it occurred to me that
this “unprecedented activity” brought about sweeping change 1) In the
widespread use of hedge funds, 2) Ridiculously easy credit, 3) An increas... (more)
The Employee Meeting
I would like to start by thanking you for attending this meeting, though it's
not like you had much of a choice. After all, attendance was mandatory. I'm
also glad many of you accepted my invitation to your family members to be
here as well. I have a few remarks to make to all of you, and then we'll
retire to the ballroom for a great lunch and some employee awards.
I felt that this meeting was important enough to close all 12 of our tire and
automotive shops today so that you could be here. To reassure you, everybody
is being paid for the day --- except me.
This time of year is a favorite for children of all ages – I happen to be
one of these kids – in part because of the television programs that are
shown around Christmas.
A Charlie Brown Christmas, Santa Claus is Coming to Town, Rudolph the Red
Nose Reindeer, and How the Grinch Stole Christmas, have been favorites of
mine since TV went from exclusively black and white to poor quality color.
This is no coincidence as these programs were made in the mid 1960’s.
As I was watching this year, it occurred to me that if at this time in
history Christmas had not yet been established, if so... (more)
Wealth Management on Ulitzer
On February 27, 2009 I wrote these words in an article entitled "Are Things
"6) There are only two things you can buy at unusual discounts these days: A
new car and stocks. These prices are beginning to attract takers. If things
were as dire as CNBC said, all other stuff would be cheaper".
"7) As the companies we own have reported earnings, most of them have beaten
expectations. In other words, the businesses continue to perform even though
the stock prices are not. What you own continues to become more valuable.
Over the next 5 years, the ... (more)
Somewhere on the internet last week, mention was made that unemployment for
high income people was (essentially) non-existent, while extremely high for
low income earners. I was able to track down that data for the fourth quarter
of 2009. Here it is by income:
As you can clearly see the lower income levels are experiencing the greatest
difficulty finding jobs. Interestingly enough, this data is not making its
way into the mainstream. But even more interesting is the set of
“circumstances” that has caused this, or at least occurred in the same
approximate time frame.
Minimum Wage... (more)