Newsletter Archive
Issues older than 90 days

Available Issues

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.

Thomas Sowell: Part III of III

Issue #467, April 24, 2017

    This will finish me review of Sowell’s latest, and presumably last, book Wealth, Poverty and Politics: An International Perspective.
Social Factors
    In American families where the parents are professionals, children hear an average of 2,100 words per hour. Children of working class parents hear 1,200 words per hour—children whose family is on welfare hear 600 words per hour. “It is painful to contemplate what that means cumulatively over the years…(Poor children) are also handicapped in both the quantity and the quality of their parents…it is hard to escape the conclusions reached by The Economist: “Nothing the government can do will give the children of Cabin Creek (see below) the same life chances as the children of Bethesda”.
    In 1938, the percentage of blacks attending Stuyvesant High (the elite NYC public high, with admission based on test scores), was almost as high as the proportion of blacks in the city. In 1979, blacks were 12.9% of the students, 1995, 4.8%, and by 2012, only 1.2% (about 2/3 are now Asian, as Jews were in the majority before WW II). “None of the usual explanations of racial disparity—genetics, racism, poverty or a legacy of slavery—can explain this retrogression…Clearly, something else was happening…One of the few possibilities is culture within the black community”.
    There have long been different cultures among blacks. After the Civil War, one of the few quality educational institutions for blacks in the South was Dunbar in Wash, DC, the first black public HS in the country. The school graduated almost all of “the first blacks who” pioneered in many fields. “From its beginning, it had a wholly different cultural orientation from that of the ghetto”. It also issued a handbook on how students should behave in school and in life as a whole. The success of Dunbar grads created resentment among many blacks, because it represented “elitism” and the blacks were “acting white”. 
    “The changing social culture of the 1960s and beyond included a celebration of ghetto culture, essentially an offshoot of the dysfunctional redneck culture of the South…So pervasive (was this influence) that even middle-class black youngsters felt a need to adopt attitudes, values and behavior from the ghetto culture, as a sign of social solidarity or a need to avoid the stigmata of “acting white”. Sowell notes one of the few black leaders to resist this trend was Martin Luther King.
Political Factors
    “Few words have been repeated so often or so insistently as “diversity”, without a speck of evidence being offered or asked to substantiate its claims of economic or social benefits. And the evidence to the contrary is huge”.
    To show how politics can effect wealth and success, Sowell looks at Nigeria, one of the poorest and most turbulent countries in the world. “In 2010, there were 260K Nigerians in the US, 0.75% of the black population. Yet in 2013, 20 to 25% of the 120 black students at Harvard Business School were Nigerian…Nearly ¼ of Nigerian households in the US have incomes of more than $100K…the way Nigerians progress under American institutions…is much like the way the overseas Chinese and Indians (and Cubans) progressed far better outside their homelands”.
    Sowell provides evidence that every increase in the minimum wage results in an increase in unemployment among black youth. (RMD comment: to take this to its illogical conclusion, if the minimum wage were raised to $100, we would all be rich).
    “Perhaps the most culturally isolated of all American ethnic groups are those descendants of the indigenous American Indian population who still live on reservations with great legal autonomy, but with lower per capita incomes than blacks, Hispanics or other American Indians not living on reservations”.
    Since the triumph of the welfare state in the 1960s, which resulted in the disintegration of the two-parent families, there has been a “retrogression” in academic achievement, and more welfare dependency, unemployment and crime. “Meanwhile, the children of low-income immigrants, not burdened by ideology…do far better”.
    “Some people may imagine that one way of showing empathy with less fortunate people…is to take a non-judgmental attitude towards their transgressions…Barbarism is hardly a gift to any community”.
Implications and Prospects
    “The leadership of lagging groups is often a major impediment to the groups’ advancement, since leaders have every incentive to promote a vision in which the groups’ problems are caused primarily, if not exclusively by the sins of other people…When you want to help people, you tell them the truth. When you want to help yourself, you tell them what they want to hear”.

    Several weeks ago I mentioned Blackstone Group (BX) and their 5% dividend. On Thursday, BX reported earnings of 82 cents per share vs. an estimate of 68 cents, up 135% from the 31 cents in the same period last year. BX was up on good volume, but didn’t quite make a new recent high.
    RMD comment: Momentum investing is when you buy something just in hopes it will go higher. If you would buy BX on a breakout, I wouldn’t consider that pure momentum investing, considering the breakout is based on strong fundamentals.
    On Saturday we went to the annual Gala for the Museum of Art and Archaeology. I was on the Board for about 20 years. I donated a signed copy of The Alien’s Secret and a one-year subscription to The Physician Investor Newsletter. I put no value on it (thus I do not claim it as a charitable donation), so whoever is the lucky purchaser can claim the entire purchase price as a deduction.
    RMD comment: I again remind you: Don’t purchase anything at a charity auction, because you can only take a deduction for the amount above the fair market value. Give cash and deduct the full amount. I assure you the charity will be quite happy.
    In anticipation of earnings reported after the close on Monday, Netflix (NFLX) was +4.33 to 147.25 on 2.5X normal volume. The Street at first seemed disappointed, and in the after-hours it traded as low as 141. By one hour before the open on Tuesday, NFLX was trading at 148.5. That was the high for the day, NFLX closed lower.
    RMD comment: The only time to trade in the pre or after-market sessions is if the stock hits your sell or buy target. To remind you: you must use a limit order, or you will get clipped by the sharpies. I trade at Charles Schwab: they will not even accept a market order in the off-hours sessions. 
    Jerry West, Laker great of the 60s and early 70s, was a native of West Virginia, and played college ball for the Mountaineers. His nickname was “Zeke from Cabin Cree

Site by Delta Systems powered by ExpressionEngine