Economics. No other subject has the capability to bore, confuse, confound, manipulate, rattle, amaze, intrigue, love, hate, enrage, arouse, dispose political figures, insight homicide or suicide, bring fear to the hearts of man, and generally ruin your day when it’s in the toilet. Yet, how strange it is that we all depend upon it in one way or another.
Humor me while I backtrack and answer a few questions.
Commodities: usable goods produced by multiple companies with no difference in the product between manufacturers.
Junk bond: A high yield bond which carries a greater risk.
A bull market is preferable to a bear market. We now find ourselves in the latter. Each time I view my portfolio, I would swear that the bear has eaten the bull and is now gnawing on the bones.
Ponzi Scheme: A fraudulent ploy that pays its investors returns from their own money or newly acquired investors. It was named after Charles Ponzi from his 1920 escapades.
Futures: A contract between two parties setting the value and quantity of a certain product at the present and to be concluded at a future time.
GNP (Gross National Product): The value of goods and services including imports for a nation over the course of a year minus exports.
Does any of this sound familiar?…I didn’t think so.
I guess what I’m trying to say is be concise when you write. Twists and turns are fine, in fact they’re encouraged. Even the occasional trip to left center field is okay as long as you round third and bring it on home.
In short, just because you know about what you’ve written, it doesn’t mean everyone else does.
Now if you will excuse me its seventh-inning stretch time and I’ve been asked to sing.
Take me out to the ballgame…