Author: Roger Staiger

16 November 2018

Question: According to MSN: Lifestyle, what are 27 ways not to get mega-depressed as the days get shorter?

Investors ‘price in’ rising risk of disorderly rupture from bloc – Pg. 2

–          The pound tumbled almost 2% against the dollar for its biggest drop in two years, while sliding 2% against the euro

–          The challenge in trying to calibrate the Brexit risks has persuaded many investors simply to steer clear.  Sterling, in particular, has been tricky for investors to trade

Tudor Jones warns of ‘scary’ crisis risks lurking in US corporate credit binge – Pg. 21

–          …”some really scary moments” in the swelling corporate debt market might precipitate another financial crisis

–          A prolonged period of low interest rates across the globe has encouraged companies to binge on cheap debt

–          Corporate bond issuance in the US alone has been above $1tn every year since 2010, having only previously surpassed that in 2006 and 2007, …

–          The borrowing binge has almost doubled the size of the US corporate bond market over the past decade, to more than $9tn, while the so-called leveraged loan market, used by riskier borrowers, has more than doubled since 2012 to vault over the $1tn mark

–          The reduction in corporate tax rates has accelerated US growth this year but encouraged the Federal Reserve to step up its interest rate increases, lifting corporate borrowing costs and leading to some tremors in the bond market…

–          The yield on a widely tracked Bank of America Merrill Lynch junk bond index moved above 7% this for the first time since July 2016

Answer: (1) Escape on the weekends (Prof Note: Come join me at the cottage.  When you cannot drive any further south in Maryland, the light is ours!); (2) Spend time outdoors (Prof Note: Nothing beats natural sunshine…ok…a roaring fire does come close!); (3) Watch the sunrise (Prof Note: And sunset!); (4) Make a summer vacation Pinterest board; (5) Buy blooms; (6) Start fires (Prof Note: Lov’n the roaring fire!); (7) Let the light in; (8) Think ‘South of the Border’; (9) Treat yourself to seasonal staples (Prof Note: I purposely redecorate by season); (10) Go to the spa; (11) Paint your toenails a fun colour (Prof Note: No comment! J); (12) Eat carbs unabashedly; (13) But mix in energy-boosting foods; (14) Read escapist summer beach books; (15) Even head to the coast; (16) Start your days with a small accomplishment; (17) Volunteer; (18) Open the windows; (19) Bake … often (Prof Note: My oven is kerput!); (20) Keep active (Prof Note: I regularly am on the bike and circling the state park); (21) But know when to rest; (22) Dress in colour; (23) Upgrade your lougewear; (24) Get creative; (25) Make S’mores indoors (Prof Note: I tried this last night.  What is up with this?!  The graham crackers get too hot to put in your mouth, the chocolate runs, the marshmallows are ablaze when not careful, everything ends up in your lap or on the oven mitt needed to hold the S’More in the fire.  There has to be a better way!!!  Oh….try HOT milk, honey and Kahlua!); (26) Find a new show to binge-watch; (27) Fine, go someplace warm (Prof Note: Can we say “N-eeee-vis”?!)

Update: I reached out to parents and learned the secret to S’mores:

My current favorite method, tested as recently as last month (and stamped with approvals from a 4yo and 5yo), is to SLOWLY heat a marshmallow over the heat source (heat, but far enough away that the process runs 45-90 seconds – the longer it takes to slightly brown the outside, the better. Aim for symmetry when browning), then place on top of chocolate (at ambient temp) which is waiting on top of a graham cracker. That hat-trick of layers should then be topped with another graham cracker. Then give it a minute for the marshmallow’s inside to cool, and the chocolate to warm. Much like compound interest, time is your friend when making s’mores.

14 November 2018

List-Serve Comment on Millennials (w/ permission): I continue to read your daily communiques with much interest.  Re: today’s theme of Millennials’ pitfalls, I would add the (heretofore unknown) damage caused by energy drinks to the list.  During my time on USS [Redacted] (SSN XXX), I was astounded at how the crew guzzled Monsters, Red Bulls, Xyiences, and 5-Hour Energies as if they were “healthy”.  Then, one Chief who drank four or more a day keeled over from a heart attack during PT one morning, aged 36.

Question: According to MSN: Lifestyle, what are 9 smart questions to ask before getting a tattoo?

Tech giants spend $115bn on buybacks as investors lap up Trump tax windfall – Pg. 1

–          The share buybacks so far this year by Apple, Alphabet, Cisco, Microsoft and Oracle, after the tax change came into force at the end of 2017, are nearly double what the companies spent in the whole of last year, making investors some of the biggest beneficiaries of a plan that was billed as a boost to US jobs

–          They increased capital investment by 42% compared with the same period last year,…

–          Tech companies had been sitting on some of the largest cash piles, almost all of it stranded offshore, where it escaped an immediate tax.  Last year’s Tax Cuts and Jobs Act brought these reserves into the tax net but at a reduced rate – freeing companies to use the money rather than leave it to continue to pile up

Investors switch to defensive stocks in swift tech pullback, BofA survey shows – Pg. 19

–          Investors have made a speedy retreat from the technology sector after its heavy sell-off in October, ….a rare stumble for one of the market’s most popular trades

–          Only a net 18% of investors said they were overweight in global tech in November’s survey, down from 25% in the previous month….

–          Instead, investors switched into defensive stocks in sectors including healthcare and utilities, …

–          The tech sector played a prominent role in an abrupt tumble in global markets last month

–          The impact was global with tech-heavy Taiwanese stocks falling more than 6% in their worst day on record

Answer: (1) Can you tell me about the ingredients in the ink you use for my tattoo?; (2) Can I watch you work?; (3) Are you a licensed tattoo artist? (Prof Note: I had no idea, before this article, there was such a thing); (4) What are the signs that I am having a bad reaction to the tattoo?; (5) Can you perform a patch test?; (6) Am I already vaccinated against hepatitis B?; (7) Do I feel a connection with this tattoo artist?; (8) Will I regret this in 10, 20, 30+ years?; (9) Am I prepared for aftercare? Prof Additions: (10) Am I sober?; (11) Will it fade into a jumbled mess and look awful later?; (12) What will happen to it with weight gain/(loss)?; (13) Is in a place where it can be concealed?; (14) Will this prevent me from future employment (Prof Note: In the mid-2000s we interested a woman (I was not part of the interview process but heard this story) that had “90’s Ho” tattood on her neck.  The head of sales said, jokingly, “We only hire 2000 Hos”.); (15) Will I mind if someone sees it and asks me about it? (Prof Note: My mantra in class, “if I can see it, I can ask about it.”); (16) Am I prepared to live with the decision of having a tattoo for the rest of my life?

13 November 2018

Question: According to MSN: Lifestyle, What are five (5) reasons why Millennials are not as well as they think?

Oil used by cars to peak in 7 years as more electric vehicles hit the road – Pg. 1

–          Ever since the first Model T Ford rolled off the production line in 1908, cars and oil have shared a relationship that has transformed the world

–          Global oil demand from cars makes up 21.4m barrels a day of the close to 100m b/d the world consumes.  This will rise to about 23m b/d in the late 2020s, after which car consumption falls back to current levels by 2040, even as global car numbers increase by 80%

–          Total consumption across motor vehicles, aeroplanes, ships, trucks and the petrochemicals sector is set to grow by 2040 at half the rate of the past two decades…

–          Companies such as Tesla are leading the fight against oil use, with as many as 300m electric cars forecast to be running by 2040

–          …the bigger impact will come from more economical fuel standards in conventional cars, which will cut consumption by 9m b/d

–          The IEA said oil demand would fall sharply in advanced economies, with the EU falling 45% by 2040 and North America 25%

Bond fund bulls confident of picking the low-risk bets – Pg. 21

–          The value of triple B bonds in the Bloomberg Barclays index, a widely followed benchmark for corporate debt buyers, has grown from $670bn at the end of 2008 to $2.5tn at the end of 2017

–          …Triple B, which now accounts for 49% of investment grade debt, up from a third in 2008 and just 25% in 2000

–          The category of triple B sits just one downgrade away from high-yield, or junk, bonds – the poorer but richer-yielding relative that investment-grade funds are not allowed to own much of

–          Given triple B debt now makes up a big slice of the major indices investors benchmark their performance against, the fear is that a tougher economic backdrop triggers a wave of downgrades that unleashes forced selling

–          …within the triple B bucket there are subtle differences.  At S&P Global, for example, its ratings range from triple B plus to triple B minus while at Moody’s they span Baa1 to Baa3

Answer: (1) Mental health (Prof Note: some 70% of millennials surveyed noted that depression undermined their ability to function at full capacity at work….mental health is real.  If I can assist anyone, please reach out to me.  This “Prof Note” is me reaching out to you to say, “I want to help.”); (2) Binge drinking; (3) Sexually Transmitted diseases (STDs) (Prof Note: The article states that “young people” are choosing riskier sex and paying the price.  Prof Note1: An STD test is one that you want to FAIL!!!); (4) Colon and rectal cancers; (5) Stroke