Workin' for a livin' (workin')
Workin' for a livin' (workin')
Workin' for a livin', livin' and workin'
I'm taking what they giving 'cause I'm working for a livin'.
A dreary rainy Labor day, with the US markets closed, but the European markets down about 4%, and gold nearing $1,900 again. Not looking like a very good start to the week, or month for that matter.
We're still very defensively positioned with 38% in cash equivalents, a full 10% weight in gold, a full 30% in fixed income, and minimal 5% weights in US and international stocks. It's ugly, stay defensive.
Way back in 1976 my high school buddy Mike and I scraped together fifty bucks to buy a slightly used Kool sail boat (Mike chipped in $30 so he got to be captain). Neither of us had any sailing experience, but we thought it would be cool to sail a Kool.
It was mid April, a bright and clear spring day of about 65 degrees. We strapped the sail boat to the roof of my Dad's station wagon and headed up to the Shenango Reservoir. The lake had a bit of chop on it, but nothing a couple of inexperienced sailors couldn't handle. Things started out pretty well, we caught the breeze and quickly headed out across the lake. Unfortunately the wind picked up and the slight chop quickly turned into 2-3 foot white caps. When you have a sail boat with a 2 foot draft and no automatic bailing you can quickly have some serious troubles. We instantly started taking on water, and we noticed it was quite cold (about 45 degrees). We tried heading for the nearest shoreline but it was too late, the boat capsized. Mike grabbed both life jackets because he wasn't a strong swimmer. We interlocked arms over the bottom of the boat, and searched vainly for another boat. Surprisingly there weren't any because it was too cold and choppy. After fifteen minutes of futilely trying to kick towards shore, a couple of guys out fishing spotted us and pulled us onto their boat. I don't remember much of the ride back in since I went into a bit of a hypothermic shock. Fortunately all was fine, our rescuers wrapped us in blankets and saved the Kool boat. We cranked the heat in that wagon, waited till our clothes dried out, and didn't tell our parents for years. We waited till warmer days in June before we headed back out.
We learned a lot from our little misadventure. Mainly to never underestimate the power of mother nature, and just how fickle she can be. The markets can be a lot like mother nature too, fickle and dangerous. After the sickening 15% plunge in early August, the winds were calm for a while and the averages started to sail higher. But this economic storm is far from over, white caps are out there, the water is cold, and I'm staying as close to the shore as possible. I'm cautious, but not fearful. Fear can be immobilizing, it can keep you away from enjoying many of life's wonders. But caution is rewarding, it allows you to enjoy life while staying alive. Be cautious.
Great chart on the changing face of the American Middle Class, via Robert Reich in the Sunday NYT:
Yesterday we were able to eek out a couple of somewhat dry hours at the Canfield Fair. While touring the numerous exhibits of award winning livestock I started thinking about the wonderful collective nouns we use for various groups of animals. A herd of cows, a flock of chickens, a gaggle of geese, a team of horses, a pride of lions, a murder of crows, a swarm of bees, and maybe the best of all...a congress of baboons.