Careful with value judgments
Earlier this week markets had a big scare with inflation numbers-CPI-coming in a little hotter than expected. Markets had a big sell off on Tuesday after a big positive day on Monday. Then markets spent the rest of the week recovering with the SP500 setting a new record high. The bond market moved their bets to a later date for the Fed to lower interest rates.
I attended a Citi Private bank event presenting their outlook for investing in 2024. According to the Citi prognosticators we are in a “goldilocks” period for investors. Interest rates will decline, and stocks outside of the “golden seven” are valued lower than their historical averages. Their focus is on mid and small cap stocks that have lagged the seven wonders for over a year. Of course, after their presentation, the next day there was a big rally in mid and small cap stocks. Not so much after the inflation numbers but the rally at the end of the week took them back up. Interest rates in the ten-year area have remained higher since earlier in the week.
I heard testimony today in the Georgia hearing from Nathan Wade, the x-boyfriend of Fani Willis, the Fulton County Georgia District Attorney. What struck me as interesting was the fact that he put all his charges on his “business” credit card and distinguished business expenses when he prepared his taxes, and he would separate his business expenses from his personal expenses. What occurred to me is why didn’t he have a separate credit card for his business expenses instead of commingling his personal and business expenses. What was he thinking? Or why was his financial advisor or accountant not recommending having separate credit cards? Pretty simple it seems to me.
The other item that stood out in Fani Willis’ testimony was that she had no checkbook and paid almost all her bills in cash. In fact, she kept large amounts of cash in lock boxes and a safe in her house. Her father insisted that she be an independent woman with her finances. When she split expenses with Nathan while they were dating-she would pay him back in cash. It was not clear what role credit cards played in her personal financial life. The only time I carried significant cash when traveling was to Argentina, and we ended up with $100 in one-dollar bills because we thought we needed small denominations for tips.
What did occur to me during this testimony was to be sensitive to cultural differences when appropriate. Be careful with value judgments in conversations, especially when meeting new people.
In the News
Here's the total cost of private school education in San Francisco (sfchronicle.com)
Can chocolate be a health food? What to look for in your favorite candy. (msn.com)
What’s Going on with the U.S. Economy? - The New York Times (nytimes.com)
California home insurance crisis: Tips to handle ‘chaotic’ market (sfchronicle.com)
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