October 2015

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3rd Quarter Commentary

This year’s market movements are not unexpected nor are they out of the ordinary.  The S&P 500’s average return is about 10% with an average drawdown of 14% sometime during the year.  Many pundits called for a correction (stock market drop of 10% or more) this year and were lauded for this supposedly bold stance.  History tells us to expect a drawdown of 14% each year and this year we got one of 12%.  Again, this is not unexpected.  We should only be surprised if there isn’t a sizable drawdown during the year.  I admit, it would be highly entertaining if we had a panic button we could hit here in the office that set off klaxons and red strobe lights in the event of market emergencies.  Unfortunately, that button would be largely unused.  Negative returns are part of a normal market and we are a long way from hitting…


Love

The Federal Reserve must be barraged by lonely singles looking for dating advice because they recently put out a working paper called “Credit Scores and Committed Relationships”.  The Fed finds that people with similar credit scores tend to get together and that the higher the credit score, the more trustworthy the person.  Having a high credit score doesn’t necessarily mean you’re relationship material so much as it lowers the likelihood of a breakup due to financial disagreements.  There are jerks with high credit scores, too.  Here’s a nice summary of the paper if you don’t feel like reading all 55 pages. The Wall Street Journal is another unlikely source of relationship advice, but they’re giving it a shot anyways, saying grammar has become a major factor in the dating scene.  There are even apps that will comb dating sites for you and grade prospective partners’ grammar for you!!! If you’re…