Daily Intent

Were you to ever question this publication’s astuteness to current information, market data, trends and ideas, your view on the Market Street Report is set to change.  In the New York Times this past Saturday there was an extensive article on the “Hemline Index”.  Yes, just one day after this publication blasted the world with the “Short-Skirt Theory”, none other than the New York Times had an extensive article on the matter.

I understand I may be getting a little ahead of myself, and my ego growing with limited basis, for I didn’t even create this theory, however, this is exciting.  The world of economists, psychologists, sociologists, and others all want to know the effects of a recession on human behavior.  To build off this intense world interest, I’m including some other intriguing findings and hilarious and inspiring quotes from a few of my readers in response to last week’s report.

Beyond the Short Skirt Theory, here are some points The New York Times in-depth analysis postulates:

    * Billboard No.1 songs from 1955 to 2003
          o During uncertain times, we are drawn to longer, slower and more meaningful songs
    * Playboy playmates during bad times
          o Tend to be more mature looking (older, heavier, taller, less curvy)
    * Laxatives go up due to stress and people holding themselves back
    * During a boom, deodorant sales are up.
    * Slow times lead to people buying things with less water in them.
          o rice, beans, grains, pastas.  Instead of lettuce, steak, fruit
    * Tobacco, carbonated drinks and eggs are especially vulnerable to recession
    * Candy, beer and pasta sauce seem to be recession-proof
    * Chocolate sales are up during recessions.
    * Infant mortality rates in Columbia fall when coffee prices slump due to parents having more time to take care of their kids.
    * Bankruptcy law firms boom during a recession
    * Obvious one, crime is up during tough times.
    * A less obvious one, death rates are down during a recession because people aren’t working as hard.  Heart attacks are down, though, sadly, suicides are up.

Market Street Report’s Reader Commentary to last week’s column.

    * Kathryn Harper - Tampa Bay, FL. Re: Short Skirt Theory.  “Florida report - short skirts. I think Florida women think that their own economic situation can be improved by wearing a short skirt.”
    * Scott Lindberg and Sarah Jaimes - Santa Barbara, CA. Re: Recession.  “Personal safe sales are up due to people pulling funds out of banks and protecting the money at home.”
    * Sophia Davis - New Homeowner.  Santa Barbara, CA.  Re: Entitlement. “let’s remember there can be fun in frugality…love is free, hugs are free, spending time with friends is free…how about a liquidation party?…recycling things we can’t use [like the biggest lose, but the biggest liquidator contest]”

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Fundraiser of the Year this Friday, October 24th.
7th Annual Lauren Ashley Herrera Memorial Foundation Golf Tournament
The Herrera family has consistently proven their ability to provide the space, event and energy to create the Fundraiser of the Year.  Hundreds will come together in loving memory of their beautiful daughter Lauren in efforts to raise over $70,000 for local charities and schools. Dinner spots are still available at $40 / person.  Dinner starts at 5:30pm.   Location: Glen Annie Golf Course.
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Buzzword: Eat Well, Sleep Well

“An adage that, referring to the risk/return trade-off, says that the type of security an investor chooses depends on whether he or she wants to eat well or sleep well.

Investing in high-risk, higher-reward securities will offer you the potential to eat well, but the risky nature of these securities might prevent you from sleeping at night.  By contrast, investing safely means that you will sleep well, but the low rate of return may keep you from eating well.” -Investopedia

  Six Points to Ponder:

   1. Since last Friday the result of recessionary fears on the markets:  Dow - Down 250pts.  S&P 500 - Down 40pts.  Nasdaq - Down  90pts.
   2. Election: 2 weeks out and Obama takes commanding 10 point lead.  McCain and Palin continue to take shots.  Bush’s approval rating drops to 25%.
   3. Microsoft Profits beat analysts projections as X-Box sales held up.
   4. Layoff report: Goldman Sachs announces 3,250 to be cut. AIG lent additional  $37.8Bn (this on top of $85Bn earlier).
   5. Somalia shores are over run with piracy.   This year they’ve taken down 60 ships.
   6. Phillies take game one against the Rays in World Series.

Positives:

    * Microsoft proves there are still long lasting companies even in this market.  Invest for the long run in good, strong companies who have nice returns on capital and solid P/E ratios.
    * There are still ways to feel dazzled, delighted, exhilarated, and radiant.  Seek these opportunities out.
    * Home buyers continue to find great deals.  Investors are starting to smell blood.

Negatives:

    * Mr. McCain was quoted as saying “I was a little disappointed the media called it a tie but I think that means, when they call it a tie, that means we win.”
    * More individuals are set to be laid off.  Much more to come.  Even by companies who three months ago all thought were on solid ground.
    * Somalia continues to experience limited government power and tyrants.  It is not a safe place.  Peace activists are often staying away.

Local:

LAH Memorial Foundation Dinner - Glen Annie Golf Course
Where: Glen Annie Golf Course
When: Friday, October 24th
Cost: $40
Why:  Good people.  A great cause.

Live and Be Well,

Jeff Bochsler