Tag Archives: Stock Market

Ray Higgins on The 3-Rules of Money

The Economy: The economy continues to expand, the deficit continues to grow and the Fed continues to tighten. Sooner or later the tightening will bite … if Fed Chairman Powell can hold the line and not initiate QE-4 at the slightest hint of economic distress. What … worry? Every investor knows the Bull is long in the tooth. The question on everyone’s mind is, “When do I sell and what do I do next?” The bi-polar investment community continues to parse goat entrails, tarot cards, cloud formations and sentiment at the bottom of wine bottles in the age old quest to divine the future of the economy and financial markets. Glass half-full or half empty … when’s the next leg up or when does it implode? Do you care … or is catching that flight to Kauai more important than risk-proofing your assets? The 3 rules of Money are simple to understand: a) 1+1 will always = 2; b) If it sounds too good to be it is; c) Save it or spend it. The time of buy and hold may be nearing an end after almost 10-years. Passive investing as well. Every market crash has produced an altered investment landscape. ETFs may be the wild-card here. Do you have your next move or are you gonna ride this rocket back down and into the ground? If you’re doing it right, you should be sleeping soundly because you have a high probability of achieving your goals. Can you handle the truth?

Food for Thought: How to transfer investment or retirement accounts: Recently we’ve fielded questions from investors who want to transfer their investment or retirement accounts to a new advisor. Retirees in a 401k, people changing jobs and investors who just want a change have the same question, “How do I move my account?” The answer is a simple and easy 3-step process:

Step 1: Open an account with your new advisor; 30-minutes.
Step 2: Email your most recent account statement to your new advisor; 30-seconds.
Step 3: Have your new advisor initiate the transfer process; 0.

The transfer process is seamless, automated and does not require you to have contact with the advisor you are leaving. Most accounts transfer through an automated process called the Automated Customer Account Transfer Service (ACATS). In most cases, the transfer is complete in three to six days. No muss no fuss; no tearful exit interviews; no broken hearts. No more cousin Billy, your advisor for decades, knowing too much about your personal affairs. Move on to the land of milk and honey. Just Do It!

Powell is the new Paul Volcker

The Economy: The U.S. economy appears to be powering ahead with unemployment at a 48-year low. There are more jobs available than there are job seekers to fill them. Average hours worked are up; construction spending is up; manufacturing is up; factory orders are up … the list goes on. Economic strength continues to give the Fed leeway to raise rates. Another 25 basis point (1/4%) hike in June is a given. The longer Powell is at the helm of the Fed, the more observers believe that he’s cut from different cloth than we saw with Greenspan, Bernanke or Yellen. Some observers liken Powell to former Fed Chair Paul Volcker. It was Volcker who trounced inflation in the early 1980’s with interest rates in excess of 20%. The economic pain of Volcker’s reign was enormous. But it ended an inflationary cycle that threatened to spiral out of control. It also laid the groundwork for the robust expansion of the 1980s and 90s. The stock market took off with Volcker and has never looked back. The rocket ride accelerated with Greenspan. … almost 40-years of stocks and real estate going up with only the occasional pause. No wonder my doctor friend blithely talks DOW 100,000 as if it’s already here. The trick for Powell will be to keep the good times rolling while simultaneously taking away the moonshine punchbowl of free money.

Food for Thought: The “China Card” is huge; whether you’re talking politics, military or socio-economic. Check out today’s “Video of The Week” below for a compelling take on why culture may limit China’s rise. Then look at how San Diego,riding the crest of a building boom, has about $3.5 billion in downtown projects underway. Papa Doug Manchester’s Pacific Gateway project represents $1.5 billion or 43% of this amount. The Gateway project is the redevelopment of the 12 acres near the Broadway Pier. That aside, housing units are driving much of the building boom as the urban lifestyle is attracting both working folks and retirees. Prices reflect the demand with higher prices the norm. Downtown is happening. While the Gaslamp draws tourists, San Diegans are flocking to Little Italy for its charm, restaurants and the weekly Saturday farmers market.

“Markets Can Remain Irrational Longer Than You Can Remain Solvent”

The Economy: The numbers were again mixed and eclipsed this week by politics. Housing starts and building permits were down. Jobless claims up, Industrial Production down. Fed minutes were, as usual, a sleeper … watching Yellen kick the can down the road is tedious at best. The excitement was reserved for the NOKO Doughboy, who blinked; for the rewriting of U.S. history that occurred in North Carolina and for the continuing Circus on the Potomac. With the exit of Steve Bannon from the White House, Chief of Staff John Kelly appears to have consolidated his control. If true, we may begin to see a unified message from the Trump Administration. Even if that message is via tweet, it may be an improvement over the noise that has become a distraction. With the uncertainty of the past few weeks, stocks have weakened while bonds have been in a holding pattern.

Food for Thought: Stocks are making some investors nervous. After relentlessly moving up this year, markets have stalled. Is it because August is usually a weak month, or is something else at play? U.S. markets have failed to hold their highs and the FANGs are down about 10%. Bulls see Dow 30,000 around the corner. Bears are salivating for a 20% correction. Central Banks continue to pump trillions into the global economy. As long as Fed Policy is “Free Money Forever” there will be an upward bias to stocks. Yet warnings abound. Fiscal policy along with Trump Initiatives are DOA. Political gridlock under Obama was astonishing; under The Donald it is simply unbelievable. Clearly stocks can’t go up forever. This begs the question for investors who are on the sidelines or short, “Do you want to be right or do you want to make money?” Which of course leads to the caveat, “Markets can remain irrational longer than you can remain solvent.”

Music of the Week: Shakira’s “Can’t Remember to Forget You”

 

Evaluating Data and US Military Intervention

The Economy: The numbers released this week underscore the difficulty in evaluating the economy. Consumer confidence is at all-time highs; as is bullish sentiment. Auto Sales disappointed. ADP Jobs report on Wednesday were blow-out; far above expectations. Yet the very similar NonFarm Payrolls were far below expectations on Friday. Oil has rallied, dipped and rallied back on each OPEC announcement. Fed Minutes were released and showed a more hawkish stance towards raising interest rates. They also contained a comment that stocks may be overvalued. The nuclear option on Gorsuch was exercised without causing a ripple. This is the conundrum of soft versus hard data. Soft data is about how you feel or what you think. Hard data is information that has some basis in statistics. With the manipulation of statistics you now have to frame hard data in terms of what might be fake news. For example, are any numbers provided by the Chinese Communist Party real? For better or worse, they certainly drive the markets. For the U.S. the consensus is that the Trump rally is intact regardless of the healthcare fail, the headwinds of tax reform, a looming trade war with China and as of today, a possible hot war with Syria/Russia. We continue to hear that regardless of the macro picture, bank lending standards remain tight.

Food for Thought: The relentless upward bias of the stock market stumbled Wednesday when the Fed Minutes were released. Two comments were taken as bearish for stocks. First, further interest rate hikes are coming in 2017. Second, the statement that stocks may be overvalued was viewed as a warning. Together, these comments stopped the rally and caused the largest reversal in 15-months. Markets closed down dramatically. But like so many other issues that should have paused this bull market, the reversal was forgotten overnight. Stocks had a positive day as the prospect of a Syrian war and the adage, “buy on the sound of cannons, sell on the sound of trumpets” was heard. Last week Tillerson indicated that Syria was best left to the Syrians. Today, Trump bombed ‘em. U.S. military intervention in Syria. Perhaps it’s the Art of The Deal, but it seems that there’s a lot of U.S. saber rattling going on. We have U.S. troops in Poland, on the Russian border, for the first time in history. We’ve turned-up the anti-Russian volume on Ukraine. We’re threatening North Korea with unilateral action. We’re flashing the sabers at China over the South China Sea. Perhaps the Central Banker stock market, which has morphed into the Trump Bump market will evolve into the global war market. To Infinity and Beyond.

Music of the Week: Billy Idol’s “Charmed Life”

President Trump

The Economy: The Economy took a back seat to politics this week with the historic Trump upset and Washington now firmly under Republican control. Republican control of both the executive and legislative branches is a double-edged sword. Now there are no excuses for gridlock. The agenda had better be enacted quickly and it better show results. The demand for change which swept the elections is just that: a demand. There will be little patience for failure.

Food for Thought: Global financial markets gyrated dramatically with the Trump victory. Overseas markets tanked. U.S. stock markets fell off a cliff then bounced and screamed higher. The bond market sold off with interest rates moving higher. How this plays out is anyone’s guess. As we move into the last weeks of the year, we encourage you to review your financial picture. Year-end is always a workup to tax time. It’s a prudent idea to check your goals.

Music of the Week: Annie Lennox “Diva”

Helicopter Money

The Economy: The U.S. economy is continuing on its path of sluggish growth. Once you dial-out the incessant noise you find that there’s been little change in trajectory. The End-of-The-World spasm that we saw with Brexit has been replaced with the usual complacency that central banks will provide additional trillions in debt to keep the global economy moving forward. Yet the Central Bank Follies are dwarfed by the global political circus. It’s May Day in Great Britain as the first woman PM since The Iron Lady, takes the helm. The Chinese claim to the South China Sea was slapped down by The Hague; a first step to internationally sanctioned military action. Our apolitical Supreme Court has jumped into Presidential Politics with one Justice proclaiming that The Donald is unfit to be President. In short, it’s business as usual.

Food for Thought: We continue to advise you to trust your personal experience as a guide to the direction of the economy. From a top-down perspective, the global economy appears to be slowing. Global stock markets are rallying in anticipation of increased central bank stimulus. To us, this is akin to giving a heroin addict more heroin. Though some indices have rallied to new highs, we find it noteworthy that many individual stocks and mutual funds have not participated in the party. For example: Citigroup is down 28% from its 2015 high; Boeing down 18%; Walmart down 19%. We remain cautious and advise taking profits. Restructuring your portfolio may be a prudent move.

BREXIT

The Economy: Fed Chair Yellen appeared before Congress this week; Tuesday before the Senate, Wednesday before the House. Hostility towards Yellen was palpable with House members reducing her to confusion and gestures of helplessness. Global distain for authority in general and Central Bankers in particular was evident in spades. But the Mother of All Events was the Brexit vote on Thursday. Pollsters and pundits got it all wrong with their incessant predictions of a landslide win for “Remain.” Flashing the Longbowman’s “V” the Brits moved to reestablish their national sovereignty and leave the EU. Financial markets crashed in shock and awe on Friday. (Only fools are going to buy this dip.) The uncertainty of Brexit was quickly on display. Though the process is supposed to take 2-years, British politicians began to call to immediately disregard many EU laws; particularly those on immigration and banking. Political parties throughout Europe began to call for Exit Referendums in their own countries. This is the death knell for the EU. Great Britain is the second largest economy in the EU. Saying the EU will survive is akin to saying that a marriage is still intact after one of the spouses has left after leaving an “I’m thru with U” note nailed to the front door. It’s gonna get messy.

Food for Thought: For over 70-years global bureaucrats and central bankers have pushed the secular, one-world agenda characterized by multiculturalism, globalization and the tyranny of the minority. These mostly unelected officials, while deriding the Divine Right of Kings, have ruled with the arrogance of dictators. They have ignored the social contract based on the consent of the governed. Brexit signals the beginning of the end of their failed reign. Despite the near universal, and very vocal, support of “Remain” by global politicians and despite the total support by the mainstream media for “Remain” the Brits revolted against the overlords and their propagandists. Political ramifications were immediate with British Prime Minister Cameron resigning. The ripples are beginning to roil outwards from ground zero with economic changes in the wind. If a slowing global economy, negative interest rates and the failure of global monetary policy weren’t enough, Brexit adds to the uncertainty that has so paralyzed Janet nd the Seven Dwarfs. However, we see opportunity in chaos. Contact us for how to protect your assets in the coming roller coaster ride.

Stem Cell Therapy: A Journey, Part 2

Stem Cell Therapy: A Journey, #2

After watching the stock markets implode on quadruple witching, We left my La Jolla office to drive to The Stem Cell Treatment Center on Directors Place, one block north of Mira Mesa Boulevard. Directors Place is located on the new frontage road on the east side of I805.

“We” is my wife and myself. Though stem cell therapy is considered an outpatient procedure and you are told you can drive yourself to and from the appointment, I wanted to make sure I had a backup driver.

My appointment was for 1PM. $8,000 cash. $4000 per hip. As of the date of my treatment, Stem Cell Therapy was not approved by the FDA. So it is called “experimental medicine” and is not covered by medical insurance. A hip replacement, which is approved by the FDA costs a minimum of $35,000 per hip. It is massively invasive and results in cutting the largest bone in your body and replacing it with a manufactured ball and socket. Welcome to life as a Borg.

We drove up the hill from the beach on Camino Del Oro and got on La Jolla Village Drive East. It was a judgment call to go La Jolla Village Drive or to get on I5 north and go east on Sorrento Valley Road. To my chagrin, I chose the former.

It took us 30 minutes to drive the 4 miles from my office in La Jolla to the doctor’s office. We hit every single stoplight during Christmas lunchtime rush hour. Count ‘em 17 stoplights.

The German logic embedded in the BMW navigation system proved to be maddening as we approached the stem cell center. The Prussian My-Way-Or-The-Highway algos didn’t allow me to input the exact address so I had to rely on memory to guide me in to the doctor’s office.

We parked the car, entered the lobby of the surgical building; then went up to the third floor Suite 360. Nobody was in the office except for the nurse receptionist Kathy who I had swapped emails with but had never met.

Medicine is like the Navy; Hurry up and wait. I throttled my impatience and chatted with Kathy. At 10 minutes after 1PM the entire plastics and orthopedic crews showed up. They had been shopping at Costco. They were good naturedly honest about it. They apologized for the traffic; the only legitimate late excuse in Southern California, and all was forgiven. “Andale!”

The stem cell treatment was to be performed in three parts. First was harvesting adipose tissue (fat cells) through liposuction of love handles on the upper butt area. Part two was to centrifuge the extracted 50 mL of fat to get the stem cells. Step three was to inject three vials of 1) stem cells, 2) growth factor and 3) Hyaluronic Acid. Think of the three as, the cells, their food and the molecular lattice structure for the cells to grow on.

Still waiting, I decided to take a coffee break; maybe it would counteract some of my growing impatience. It seemed to work because I was in better spirits when I got back to the waiting room. Bob the Physician’s Assistant introduced himself and told me to saddle-up for lipo.

At this point, I was the only patient in the 3000 square-foot surgical suite. Later my wife told me that after I disappeared behind Oz’s curtain for the liposuction, there was a steady stream of Baby Boomer cash buyers who came through the complex.

I followed Bob back to the treatment room where the liposuction would be performed. I left my Kindle, IPhone, wallet and car keys with My wife in the waiting room.

It turned out that Bob had been a Navy Corpsman. As an Asian American he’d spent his Navy time in Iraq and Afghanistan.

“Glad I missed Vietnam,” he said. “It was easier to be around the camel jockeys than it would have to be around the gooks.” After getting out of the Navy a few years ago, he tried pharmaceutical sales before coming back to the surgical suite.

Bob began to place me on the lipo gurney when the Plastic Surgeon, Craig, came into the treatment room. Craig explained that he was the Plastics Guy and was only going to do the lipo. When I asked where his medical offices were, he told me that he was an active duty Navy Captain stationed at the Navy Regional Medical Center in Balboa Park.

He said that in a war zone he did wound reconstruction but that most of what he did now was breast cancer reconstruction of the kind done on Angelina Jolie. I mentioned the Boat School and Craig laughed saying, “I was born and raised in Annapolis. My grandfather and uncle were Ring Knockers. I’m 47. It’s taken me 19 years to make Captain. Time to transition.”

“Amen Brother,” I replied. “I did 4-Westpacs when Hong Kong, Olongapo and Singapore were full of the wildest women on the planet.” “I love you, no shit. Buy me a drink!” Bob chimed in. The three of us erupted in laughter

With the testosterone at the appropriate level, I took off my old topsiders and laid face-down in my navy blue sweats on the gurney. Bob asked me to pull the top of my sweats to mid chest and pull down the bottom of my sweats to the bottom of my butt cheeks.

I had met Craig last week at the pre-op conference. As we chatted while Bob prepped me for the liposuction, Craig told me that in order to comply with all regulations, he would take a leave day to perform the lipo on a specific patient group. This was why the stem cell treatments were scheduled for all patients only twice a month on Fridays. The scheduling allowed Craig to take a leave day, perform a couple of dozen liposuctions, make more money in a day then he made in a year as a Navy captain and then go back to his work at Navy regional medical center Balboa Park.

As a Bob draped my butt, Dr. Craig explained what was going to be happening during the liposuction.

He said the most painful part of the procedure was going to be the process where numbing solution was injected into the fat to be removed. He then proceeded to numb the skin in a dozen different places on both sides of my upper butt just below my belt-line.

Next was injecting the numbing solution into the fat … and he was right. The injection of the numbing solution was painful. My body jerked involuntarily in spite of my trying to remain relaxed. I was aware that the jocular talk had tapered off as I focused on the task at hand; trying to play the Terminator without flinching..

My mother was a Registered Nurse. Early on I realized that medical personal never use the word “pain.” Instead, the euphemism “discomfort” is substituted.

I can imagine the field hospital scene at the Battle of Gettysburg. A young soldier whose leg has been shattered by gunfire, is brought into the surgical tent. The drunken butcher who is going to amputate the leg, asks 9-men to hold the patient down because there are no anesthetics. Even the whiskey has run out. As the doctor picks up the bloody saw and positions himself to hack off the offending limb, the terrified patient looks up and whimpers, “Doc, is it gonna hurt?” … and the doctor says, “Son, you’ll just have some discomfort.” …. as piercing screams fill the air … fade to black.

So there was some discomfort; uncomfortable but not unbearable as the area was numbed. Then two small vertical incisions, about ¼ inch in length, were made on each side at the top of my butt cgurney and the lipo began.

Liposuction consists of ramming a hollow tube, called a cannula, back and forth through your fat. The dislodged fat residue is then sucked out of the area. There is nothing delicate about this process of having a foreign object jammed in and out of your body. The motion is the same as that you would use when shooting pool. But unlike shooting pool, the doctor is putting his back into this effort. This “rammin’ and jammin’” was done in silence as the banter gave way to the very physical task at hand.

There is discomfort. But anesthetics do a remarkable job. The occasional pain spike caused my body to jump but Craig was responsive saying, “We won’t go there again” as he rammed and jammed in another direction. He worked a fan shaped area on both sides of my upper butt. When he was done with the left side, he immediately went to work on the right side. In a few short minutes he was done.

He then asked if I was interested in seeing the 50 ml cylinder of extracted fat cells. I was interested. It looked like a cigar size syringe full of pink Smoothie from 7/11..

After 20 minutes of which included prep, the lipo and post lipo wrapping, I was back on my feet and in the waiting room.

Kathy, the reception area nurse, told me that it would take an hour for them to centrifuge the fat cells and extract the stem cells. She recommended that I leave the office and kill an hour with a cup of coffee. She gave me a $20 Starbucks Gift Card and recommended that I drive down the hill to the Scranton Road Shopping Center on the North East corner of I 805 and Mira Mesa Boulevard. Kathy recommended that we be back in the office at 3:30. So at 2:30 PM we left, drove down the hill and got some Christmas cookies and hot chocolate at Starbucks.

The shopping center is adjacent to the infamous red “Dog Dick’ sculpture that is in front of the San Diego Tech Center building. The sculpture was erected in the mid 1980’s. It used to be easily seen from I805. Now you have to be on Scranton Road to see it. But there it is. “Dog Dick” reigns supreme in its turgid 100 feet of .fire-engine-red glory; pointing at the sky awaiting the Mother of all Bitches.

After sitting out in front of Starbucks enjoying the 70 degree weather, we drove back to the surgical center.

We arrived back in the surgical office at 3:30PM. I was met in the waiting room by the orthopedic surgeon, Dr. Pete, who was going to perform the stem cell injections. My wife again sat in the waiting room while I was ushered into the treatment room which was located across from the nurses station. After a quick introduction, Pete disappeared after turning me over to Bob for prep.

When I entered the treatment room, I noticed that there was an intravenous drip (IV drip) set up next to the treatment gurney. Bob commented that my stem cell count was about 85 million cells which was the upper end of the norm. Bob asked me to lay on my back on the gurney. The IV drip contained saline solution. Bob told me that treatment now included a systemic injection of a portion of the stem cells through an IV drip back into the patient’s body. He said that this had reduced or eliminated a variety of aches and pains in patients that had received it. This was good news. Self-medication continues to recede. “Fire when ready Gridley!”

As Bob searched for an appropriate vein in my left arm, I told him that my veins rolled. As a blood donor I’d gotten in the habit of telling the help because my rolling veins had been problematic. On more than one occasion I’d had to stop some dullard who confused vivisection with medical care, as they continuously tried to harpoon my rolling veins. Eventually I began to address all medical technicians as Doctor Moreau whenever I sat down and began to roll up my sleeve to give blood. Many times the technician would disdainfully tell me, “I’m not a Doctor.”

Duh!

But Bob was the real McCoy. His aim was true and in no time my own stem cells were coursing back into my body on the IV drip. When the injection was done, Bob removed the needle from my left arm, and put a bandage on the spot. Then the door opened and Pete came in.

While Bob prepared the sonogram transducer with KY and positioned the screen, Pete explained the injection procedure. He showed me the three vials and explained that the largest containing the stem cells would be injected first, followed by a smaller volume of growth factor and a third volume of hyaluronic acid aka “rooster comb.”

The procedure was similar to the cortisone injections that I’d previously had. With me lying on my side, the Doc selected a spot directly above my hip joint. Then an aerosol can of numbing solution was sprayed on the point of entry for the 4-inch hollow needle. The Doc drove the needle straight down into the hip joint while Bob sprayed the impact zone with the local anesthesia. Once the needle had been guided into the joint using the sonogram, the stem cells were injected with Dr. Pete looking at the sonogram display and injecting the cells into specific areas of the hip joint. On my left hip this was a slow and painful process as he moved the needle around within the joint. I could feel the stem cell solution going into my joint and the resulting pressure of having the area around the hip joint expanded by fluid. The stem cells were followed by the growth factor and then the hyaluronic acid.

The process for my right hip went much faster. Pete again drove the needle straight down into my hip joint. He then injected the entire stem cell solution quickly without having to work the needle. Next, as he injected the growth factor and hyaluronic acid, he explained that my left hip had been “dry.” Injecting the left hip had been more painful and had gone more slowly because there was little natural lubricant in the left hip joint.

My right hip, however, was full of fluid because it was more inflamed. This is consistent with what I had experienced since my last Cortisone shot 90 days ago. I went into that Cortisone shot with my left hip more painful than my right. I came out with my right hip more painful. It has subsequently remained more painful. Uh …. I mean there had been more discomfort!

The stem cell injection procedure from beginning to end took half an hour from the moment that I walked in and lay down on the gurney until I got back up and was escorted out of the room by Bob.

When I left the treatment room, Pete, Craig and Bob were all standing at the nurses station. I stopped for a moment to thank them. They asked what I did for a living. When I said that I owned a wealth management firm, they began talking about the venture-capital opportunities available in the stem cell space in San Diego.

My wife and I left the Stem Cell Center at 4:15PM with a Vicodin script. We drove straight to Ralphs Pharmacy to get it filled. Sorry Charlie, Pete had mis-dated the script 12/19 instead of 12/18 so the pharmacy wouldn’t fill the script. The pharmacist wouldn’t give the script back to us so we were stuck with having to come back after midnight to pick it up.

I just laughed. Thank you God for all my blessings!

7 Realities of Life

7 Realities Of Life from the Libertarian Republic

1. Your Feelings Are Largely Irrelevant

Seriously, nobody who has already graduated college cares about your feelings. That means that when you complain to your boss because your co-worker mis-gendered you, he’s probably not going to bend over backwards to bandage your wounds. Given feelings are entirely subjective in nature, it’s completely unreasonable to demand everyone tip-toe around you to prevent yours from being hurt. The reality is that people will offend you and hurt your feelings, and they won’t stop to mop up your tears because they shouldn’t have to. Learning to accept criticism, alternative viewpoints, and even outright insults will make you happier in the long run than routinely playing the victim card.

2. You Cannot Be Whatever You Want To Be

This is a comforting lie parents have started telling their children to boost their morale in school. Unfortunately, millennials are now convinced it’s true, especially as society has now decided to push this narrative as well. The reality is if you’re 17 years old and still can’t figure out basic division, you’re not going to be a rocket scientist. If you’re overweight and unattractive, you’re not going to be the quarterback’s prom date. If you lack fine motor skills, you’re not going to be a heart surgeon. It’s okay to accept that you cannot be whatever you want to be. In fact, once you accept this, you’ll be able to focus on the things you can be — the things you really are talented at.

3. Gender Studies Is A Waste Of Money

You heard me. While some millennials taking useless degrees will claim they’re beneficial for teaching or research positions, the reality is that they just put themselves several thousands dollars in debt to learn how to be a professional victim. While you’re struggling to make ends meet after graduation because nobody who pays more than minimum wage is interested in your qualifications and you’re drowning in student loan debt, be sure to check out the next harsh reality before you start complaining.

4. If You Live In America, You’re Already In The 1%

That’s right. Even though you work at McDonald’s for minimum wage because you got a useless, outrageously expensive college degree, you’re still far better off than the vast majority of the planet. Don’t believe me? Fly to Uganda and check out the living conditions there. Fly to China, Saudi Arabia, North Korea, Iran, Russia, and even European countries like Ukraine and Greece, and you’ll quickly discover just how well-off you really are. While it may be cool these days to dump on capitalism, it’s the only reason you aren’t already worse off.

5. You Don’t Have A Right To It Just Because You Exist

That includes healthcare, guaranteed income, and somewhere to live. Just because you’re here and breathing doesn’t mean society owes you anything. Like the billions of people who lived before you, working hard is a better guarantor of wealth and the ability to comfortably take care of yourself than begging society or the government to do it for you. Demanding healthcare be a right, for example, is equivalent to demanding government force the taxpayer to pay for it. While that may seem like a good idea in theory, it only leads to rationing of care when costs become unsustainable, which negatively impacts not just your health, but everyone else’s, too.

6. You DO Have The Right To Live As You Please — But Not To Demand People Accept It

By contrast, you do have the right to live however you please, so long as it’s within the confines of the law. If you want to cross-dress, smoke marijuana, drink lots of alcohol, have lots of sex, and, yes, even go to school for gender studies, then by all means, go for it. Government should not be allowed to legislate people’s behavior as long as it doesn’t infringe upon someone else’s rights, but that doesn’t mean society isn’t allowed to have an opinion. You don’t have the right to demand people keep their opinions about your lifestyle to themselves, especially if you’re open and public about it. I have as much of a right to comment on the way you live your life as you do to actually live it. Your feelings are not a protected right, but my speech is.

7. The Only Safe Space Is Your Home

No matter where you go in life, someone will be there to offend you. Maybe it’s a joke you overheard on vacation, a spat at the office, or a difference of opinion with someone in line at the grocery store. Inevitably, someone will offend you and your values. If you cannot handle that without losing control of your emotions and reverting back to your “safe space” away from the harmful words of others, then you’re best to just stay put at home. Remember, though: if people in the outside world scare you, people on the internet will downright terrify you. It’s probably best to just accept these harsh realities of life and go out into the world prepared to confront them wherever they may be waiting.

La Jolla Shores Bull Market

The Economy: The U.S. economy appeared to be motoring along in slow gear until last Friday. Then the abysmal jobs report was released and it cast uncertainty into the equation. Immediately, the odds of a Fed hike in June went to zero as investors recalibrated their tactics. Then on Monday of this week Fed Chair Yellen warned against putting too much emphasis on one report. She indicated that rate hikes were still in the cards for 2016. Yep … like a snow ball’s chance … . The bottom line is this: The Fed doesn’t believe that the U.S. economy is strong enough to allow for normalization of interest rates. We are stuck at the zero bound which is causing havoc for savers, banks and insurance companies. But the Fed lacks the confidence in the economy to end financial repression. How this plays out is anyone’s guess. The Battle of The Analysts is in full swing with some insisting that the end of the world is nigh. Others are equally vocal in calling for an end to cash so that governments can more accurately monitor the economy. The NSA must be salivating over the prospect of knowing where every nickel you spend is going. We’ve never been fond of Central Banks, run by academics, trying to impose economic theory on the real world. For a beautiful example of Central Banker Mindset, see Paxton Whitehead as economics Professor Philip Barbay, in Rodney Dangerfield’s 1986 comedy “Back to School.” He truly gets no respect.

Food for Thought: Global growth rates continue to be cut. This is occurring while global stock markets rebound from their first quarter swoon. Is this divergence evidence of The Greater Fool Theory or is it The Dawning of the Age of Aquarius? Your choice. We remain strapped to the rocket but have both hands on the ejection lever. The principals here at Higgins Capital have lived through several market crashes. The crashes follow the same script: Months of warnings culminate in a tipping point that seems to catch everyone by surprise. Far too many investors go from rompin’ stompin’ bulls to deer in the headlights unable to process the environment until they’re down 40%. Do not let this happen to you. Have an exit strategy. Know what you own and why you own it. Have real or mental stops on your portfolio. Trust your own personal experience over that of experts. Are things in your personal economic life or the economic life of your organization going so well as to justify new highs in a 7-year old bull market? Why do we continue to hear about new and more economic stimulus? Beware of Central Bankers bearing gifts.