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Strange Things in the Precious Metals
Issue #531, July 17, 2018

Buying Years of Retirement
Issue #530, July 09, 2018

Rent-A-Kid for Retirement
Issue #529, July 02, 2018

The Dark Side of Student Loans
Issue #528, June 25, 2018

The Cost of Out-sourcing Convenience
Issue #527, June 18, 2018

Social Security: 66 or 70?
Issue #526, June 11, 2018

Student Loans: There’s (Unfortunately) a Lot More!
Issue #525, June 04, 2018

Co-signing a Note
Issue #524A, May 31, 2018

The Knight Frank Luxury Index and Collectables
Issue #524, May 28, 2018

The Importance of Diversification: The Myth of Diversification
Issue #523, May 21, 2018

How to Save Thousands on Your Food Bill
Issue #522, May 14, 2018

MoviePass and Other Things
Issue #521A, May 10, 2018

Degree Inflation, Long Training Periods, and “Certification”  Part III
Issue #521, May 07, 2018

Degree Inflation, Long Training Periods, and Certification” Part II of III
Issue #520, April 30, 2018

Follow-up on Several Things
Issue #519A, April 25, 2018

Degree Inflation, Long Training Periods, and “Certification”: Part I of II
Issue #519, April 23, 2018

The Kids Birthday Party Hustle
Issue #518A, April 18, 2018

A Pension Question: Part II of II
Issue #518, April 16, 2018

A Physician is an Executive
Issue #517A, April 11, 2018

A Pension Question: Part I of II
Issue #517, April 09, 2018

Is the Correction Over?
Issue #516A, April 05, 2018

Used Car Dealers, Student Loans, the Chinese, and Uncle George’s Rule
Issue #516, April 02, 2018

Starter Homes
Issue #515, March 26, 2018

Redecorating: Beware!
Issue #514, March 19, 2018

NASDAQ Closes at Record High
Issue #513, March 12, 2018

A 40% Chance
Issue #512, March 05, 2018

Several Things
Issue #511, February 27, 2018

Human Capital, Education and Wealth
Issue #510, February 19, 2018

Another Stock Market Update
Issue #509A, February 18, 2018

Some Thoughts on Savings
Issue #509, February 12, 2018

A Stock Market Upfate
Issue #508S, February 10, 2018

Who Can You Trust? Part II of II
Issue #508, February 05, 2018

The Christmas Decoration Pre-worn Jeans Hustle
Issue #Interim Bulletin #507A, February 03, 2018

2018 Outlook for Financial Markets
Issue #507, January 29, 2018

Who Can You Trust? Part I of II
Issue #506, January 22, 2018

Life Insurance Settlements
Issue #505, January 15, 2018

Commodities and Buying the Breakout
Issue #504, January 08, 2018

Buffett Wins His Bet
Issue #503A, January 04, 2018

Practice Real Estate and Free Agency
Issue #503, January 01, 2018

Outlook for 2018: Part III: Stocks and Bonds
Issue #502, December 25, 2017

My Outlook for 2018: Part Ii: Precious Metals
Issue #501A, December 21, 2017

Outlook for 2018: Hard Assets: Part I of III
Issue #501, December 18, 2017

More Thoughts on Bitcoin
Issue #500A, December 14, 2017

Fees and Good Relations with Bankers
Issue #500, December 11, 2017

Salvator Mundi
Issue #499A, December 07, 2017

Should You Rent or Own a Home?
Issue #499, December 04, 2017

A Gift Subscription
Issue #Interim Bulletin #498A, December 02, 2017

Stocks vs Real Estate: Asset Allocation: Part II of II
Issue #498, November 27, 2017

When Good Enough is Fine
Issue #497A, November 22, 2017

Stocks vs Real Estate: Asset Allocation. Part I of II
Issue #497, November 20, 2017

The Saudi Arrests and the Perils of Foreign Investing
Issue #496, November 13, 2017

Gambling and Las Vegas
Issue #495, November 06, 2017

Some Tips on Auto Insurance
Issue #494, October 31, 2017

Bitcoin and the Digital (Crypto) Currencies
Issue #493, October 23, 2017

The Coming Bear Market: Part II How to Prepare
Issue #492, October 16, 2017

Some Observations on Cemeteries
Issue #Interim Bulletin #491A, October 12, 2017

The Coming Bear Market: Part I: The Myth of Buy and Hold Forever
Issue #491, October 09, 2017

The Market makes New Highs
Issue #490, October 02, 2017

The Importance of a New High
Issue #489, September 25, 2017

A Little Insurance: Wealth, War and Wisdom
Issue #488, September 18, 2017

Some Observations
Issue #487, September 11, 2017

How to be Successful in Your Career
Issue #486A, September 07, 2017

How NOT to Buy a Home
Issue #486, September 04, 2017

This Week in the Market
Issue #485, August 28, 2017

Is the “Trump Bump” Running Out of Gas?
Issue #484, August 21, 2017

Gold is on the Move
Issue #483, August 14, 2017

The Importance of Estimation
Issue #482, August 07, 2017

Buying Art and Collecting: Part II of II
Issue #481, July 31, 2017

Buying Art and Collecting in General, Part I of II
Issue #480, July 24, 2017

Physicians need to be More Forceful: Follow-up
Issue #479, July 17, 2017

Physicians need to be More Forceful
Issue #478, July 10, 2017

Your First “Real” Investment
Issue #477, July 03, 2017

Leasing a Watch: Don’t
Issue #476, June 26, 2017

The Importance of Your Children having a Job
Issue #475, June 16, 2017

The Problem with Medical Student Debt is—the Med Schools
Issue #474, June 12, 2017

Critters and Varmints in your Home and Yard
Issue #473A, June 07, 2017

Leveraged ETFs
Issue #472, May 29, 2017

Leasing a Vehicle: Don’t!
Issue #471, May 22, 2017

Issue #470, May 15, 2017

More on Buying Jewelry
Issue #469, May 08, 2017

Buying Jewelry: Gold, Diamonds and Pearls
Issue #468, April 30, 2017

Thomas Sowell: Part III of III
Issue #467, April 24, 2017

Thomas Sowell: Pat II of III
Issue #466, April 17, 2017

Live Close to Where You Work
Issue #465, April 10, 2017

Medtronic in Hospital Management
Issue #Interim Bulletin #464A, April 07, 2017

Thomas Sowell: Part I of II
Issue #464, April 03, 2017

A Political Contribution a an Investment: Part II of II
Issue #463, March 27, 2017

A Political Contribution as an Investment: Part I of II
Issue #462, March 20, 2017

Buffett Selling Vacation Home
Issue #461, March 13, 2017

Advanced Placement (AP) ourses
Issue #460, March 06, 2017

The Importance of a Credit History
Issue #459A, March 02, 2017

A Credit Card Scam
Issue #459, February 27, 2017

The Electronic Health Reord
Issue #458, February 20, 2017

Issue #457, February 13, 2017

Platinum and Palladium
Issue #456, February 06, 2017

Economic Outlook for 2017: Part II of II
Issue #455A, February 02, 2017

Economic Outlook for 2017: Part I of II
Issue #455, January 30, 2017

A Story From Vegas
Issue #454A, January 25, 2017

Land Donation Deals and the IRS
Issue #454, January 23, 2017

The Theory of Gambler’s Ruin
Issue #453, January 16, 2017


By Robert M. Doroghazi, M.D., F.A.C.C.

MoviePass and Other Things

Issue #521A, May 10, 2018

    In a recent Newsletter, I sang the praises of MoviePass. For a fee of about $10 per month, you can go to up to 1 movie per day, accepted at most theaters.
    To quote John Maynard Keynes “When the facts change, I change my mind. What do you do, Sir?” Helios and Matheson reported a non-cash loss of $110M, far larger than the $7.4M loss reported before they acquired MoviePass. The more people they sign up, the more they lose. Younger son Michael has an MBA in marketing, and notes “Dad, that’s not a good business model”.
    RMD comment: if you have a MoviePass, use it as much as you can. If you don’t, I would be hesitant to join. They might not be around long.
    Some interesting things are happening in the market.
    1) The VIX has fallen below 15, the lowest since the correction began in late January.
    2) The Russell 2000, a broad measure of the small-cap stocks, is back to within 1% of the previous high.
    3) The US Dollar has flexed its muscle, yet:
    4) Oil has broken to a 3-year high, and XLE, an ETF of the largest energy stocks such as Exxon Mobil (XOM) and Chevron (CVX), etc., is also back to a multi-year high.
    5) Gold has weakened, but not broken down.
    I’ll discuss these more in the near future as the trends become more established.
    There was a piece in The Wall Street Journal yesterday noting pension funds nation-wide have over-estimated their returns. They projected 7.25% , but realized only 6.79%.
    RMD comment: This allows me to make multiple points:
    1) The artificially low interest rates engineered by the Federal Reserve and the other central banks over the least 10 years were a travesty, punishing savers, and everyone dependent on the return from fixed income, such as retirees, insurance companies, foundations, and pension funds.  When I was growing up, a passbook account at the local S&L paid 4% interest, and all of your money was available on demand. Now you have to tie up your money for 3 years to get 3.15% on a T-Bond.
    2) Most would say the difference in return is 7.25 – 6.79 = 0.46. I disagree. When comparing returns, don’t compare them to the amount invested, compare the returns to each other. If you invested $1,000, the difference between $72.50 and $67.90 is $4.60, a 6.8% difference in the amount of money you receive.
    3) One reason the returns were over-estimated was so the entity funding the plan didn’t need to contribute as much. This was especially egregious in the public sector: it made life easier for the politicians to spend the money elsewhere.
    RMD comment: You must be honest with others, and with yourself. To paraphrase my hero Thomas Sowell “If you want to make people happy, tell them what they want to hear. If you want to help them, tell them the truth.”     
    I again recommend Grant by Ron Chernow.
    I met an impressive young lady of Indian origin studying in the US. She is The Other One Percent: Indians in America by Chakravorty, Kapur and Singh. The Indians earn, by far, more than any other ethnic group/nationality in the US, because those who emigrate from India are highly selected: the smartest, best educated, and hardest working. 
    I’m starting Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts by Annie Duke, one of the premier female poker players in the world. It might be worthy of a Newsletter. 
    I have blond hair, blue eyes and was outside all the time while growing up. My skin would rate “2” on the Fitzpatrick scale of 1 (lightest)-6 (darkest) (Fitzpatrick was head of Dermatology when I was at the MGH. I remember him well).  I’ve had 7 basal cell cancers removed and see the dermatologist later this week.
    RMD comment: Please, please use sun screen liberally for you and especially your children. It is one of the greatest inventions of the 20th century.     


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