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“Today Shapes Tomorrow

Published Every Monday Since 2007   | Volume 585 |
February 5, 2018
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“…you need money to buy things; you earn money by working; you may have to wait to buy things you want; and there is a difference between things you want and things that you need…”
Time Magazine, Nov 30, 2015
Article – Your kid’s financial education should start much earlier than you think – By Dan Kedlec
 Little Laughs!
Knock…Knock…Who is there? FedEx…FedEx who?
FedEx will be there tomorrow!
What is the worst kind of cat?
CAT-astro-phe !
What do you get when you cross snowman with vampire
What kind of Bill can you breath?
Why did Dino go to the hospital?

Because he was (Dino) “Saur”.

How do you make eleven even?

Take away the “el.”


How do you make seven even?

Take away the “s”


Why did the chicken cross the railroad track?

Because it wanted to get to the Chick train.


What is a duck on the 4th of July?

A Fire-Quacker!!


Knock, Knock…Who is there?Banana…Banana who?  Banana…Banana who?Banana…Banana who? OR-ange…Aren’t you glad I didn’t say banana?


Are you 5?

No! I am not 5!  I am 4.95 plus shipping and handling!


Knock knock…Who is there?  Panther!Panther, who?   PantH-or-no-PantH I am going Thwiming!


Laughs above are credited to kids and various sources.

Business fun facts!


Do you know the ancestry of American people? It is a melting pot of immigrants from all over the world. This trend continues even today. These immigrants make America what it is today and are an big part in the success of businesses today.

There are over 320 million Americans today. Ancestry of Americans include: Germans over 14%, African American 12%, Irish 12%, English 8%, Mexican 8%, Italian 6%, Hispanic 5%, French 4%, Polish Scottish, Dutch, Norwegian, Scotch-Irish, Native American, and Swedish are between 1-3% but add up to 11%. The rest are from other various countries.

In 2008, $3.3 Trillion was the total loss in value for the US housing market. In early 2006 housing market value was close to $9.4 almost 1/3rd of housing market value was lost due to housing, credit, and financial crisis!

Since 2008, close to 12 million jobs have been added to the job market! This has allowed many Americans to get back on track and recover from the recession. Unemployment rate is now below 5% from almost 10% in 2009 when financial markets caused the recession!

The DOW drops 1,063 points for the week!

The DOW closed down 1063 points or 4.0%, the S&P500 was down 105 points or 3.67%, and NASDAQ was down 244 points or 3.25% for the week ending February 2nd.  The oil closed at $65.06 per barrel down $1.18 or 1.8%.

Year-To-Date (YTD) in 2018, the DOW is up 4.1%, S&P500 is up 4.0% and NASDAQ up 6.3%.

In 2017 the DOW was up 25.1%, S&P500 up 19.4% and NASDAQ up 28.2%.

Who is the new Federal Reserve Bank Chair?

President Trump appointed Jerome Hayden Powell as the new Chair of Federal Reserve Bank replacing Dr. Janet L. Yellen who was appointed by President Obama. 

Mr. Powell replaced the first woman to hold this prestigious job for only one term.  Previously, Dr. Yellen replaced Dr. Ben Bernanke after his term expired in December of 2013.  Dr. Bernanke was appointed as Federal Bank Chairman by President Bush in October 2005.  Prior to Dr. Bernanke it was Dr. Alan Greenspan, who was the chairman of Federal Reserve for the previous 18 years.

The Federal Reserve Bank (also known as the “Fed”) consists of 12 US government banks covering important economic regions throughout the U.S. and their 25 smaller branches.  We briefly discussed the role of Federal Reserve in economy in our earlier newsletters (click here for Volume 11 and Volume 13).  A few of its functions include stabilizing the economy, providing loans and money to other banks, establishing and enforcing good banking practices, and determining interest rates. 

Mr. Powell, 65 years old, spent most of his career in the investment banking and private equity before joining the Federal Reserve Board in 2012.  He earned is undergraduate degree from Princeton in 1975 and Juris Doctor degree from Georgetown Law Center in 1979. 

How did your stocks do in 2017 and see the compounding effect over 11 years, since 2007?
In 2017
Your Portfolio = +24.4%
Benchmark S&P500 = +19.4%

See How Previous Years and Compounding worked for you?

2017 Annual returns
In 2017, our portfolio beat the benchmark S&P500 (or the market) by +5%!  For the year, our portfolio gained over +24% while S&P500 was up over +19%!  Congratulations!!

Annualized returns are shown above under the Performance in the first two columns.  The last two columns are about COMPOUNDING. 

But…how about long term investment returns?

Over the long term and since 2007, our portfolio beat the S&P500 in Average Annual Returns over 11 years – we had +10.4% versus +9.6% by the S&P500…which leads us to…How was annualized compounding returns?

How did the compounding workout?
The Compounded returns, in other words, cumulative effect of  gains or losses on the original $100 investment over 11 years, our portfolio had a nice +186% versus +132% if invested in the S&P500. 

Annual compounded returns of +17% for the portfolio and +12% if invested in S&P500.  See the last two columns to understand how your $100 in 2007 are now $286!!
The power of compounding!!

How the DOW crossed major milestones Since 2017?

Thank you for your feedback and comments! Now we are on to our 11th Year!!

Tip!: Try moving your mouse over active definitions, such as, on the right side DOW, S&P500, NASDAQ, which will open up a pop up with details so you can learn more!
Learn more about…

Emigration in America –

1% are Native Americans but 99% came from rest of the world or brought over

Click here for Volume 575.

What is Full Employment?  Is it a good or bad thing? Click here for Volume 529.

During which President economy and jobs were better than others? How did Obama perform? Click here for Volume 529.

How do the Economy(GDP), Tax(Government tax & spending), and Budget Deficits turn into $17T in Debt? Simplified Explanation Volume 470.

What is the US debt ceiling, which president helped to create this debt, and to who do we owe this money? Volume 360.

What was your stock pick performance in 2016 and the last 10 years from 2007-2016? (Volume 530)
What is inflation? Volume 11.

What is Credit History? Why is it important to have a good credit history? Volume 12.


What is Economy, Business, Workers, Goods, Services, Stock, DOW, S&P500, and NASDAQ in Volume 16
Does it pay to study hard? Volume 17.

What is Currency and Foreign Currency Exchange rate? Volume 14. What is stronger or weaker currency? Volume 20. What does the dollar slide mean? Volume 32.

How does money grow in a bank? Volume 21.

What is Fed Funds rate and Discount rate? Volume 22

What does the interest rate cut mean for you? What is APR? Volume 23

How to read stock information? Volume 25.

What is the “Black Monday”…Crash of 87”? Volume 31.

Compare the Great Depression and the 2008 Recession

Source-CNN, Federal Reserve, Commerce Department, and estimates

Compare the Great Depression to the 2008 Recession? Volume 114.
What is a Recession? What is a Depression? Volume 48.
What are the Consumer Price Index (CPI) and Producer Price Index (PPI)? Volume 48

Why is consumer confidence so important? Volume 64.

What are expansions and contractions in Service and Manufacturing? Volume 389

Who are the CEO, CFO, Shareholders, and the Board of Directors? What is SOX? Volume 33

What does “$4.95 + Tax” mean? Volume 47

What is Mergers & Acquisition (M&A)? What is a Merger? Volume 49.

ADR (American Depository Receipts)

What is ADR? Volume 62.

What does buying back shares mean? Volume 63.

A fun way to start a Lemonade Stand and Learn about Business too! Volume 142.

What is Supply and Demand? Volume 177.

What is Q.E. – Quantitative Easing? Volume 343.

Who is working and who is not? Volume 354.

Do you remember September 2008 (after 5-Yrs)? What is the status of government loans (TARP)? Volume 355.

Which country is in heavy debt…see the debt as a % of GDP by country? Volume 358.

What is “Taper” or what does “Fed Tapering of Q.E.” mean? Volume 369.

Who is the new Federal Reserve Chair? Volume 382.

We use multiple information resources, such as, news websites, company websites, stock exchanges, newspapers, text books, and other educational resources.

Source:, Microsoft Clipart, etc.

Jan  29-31 & Feb 1-2, 2018

Weekly Stock Market


Markets Up or Down?

Random Walk of stocks?

Buy Low? or Sell High?

Index (YTD%)



DOW (+4.1%)

Down 1063



Down 105



Down 244


Foreign Exchange Rate

$1 is equal to




Euro (€)

European Union



Yen (¥)




Pound (£)

United Kingdom



Yuan ()




Rupee (Rs.)




Your Favorite Stocks

Portfolio is -1.8%  vs. 

S&P500 +4.0%


Bought one stock in Jan-18

This week stock is?

Your gain or loss?


$108.7 $1.2


$65.5 $1.0


$169.4 -$2.7
$169.2 $160.5 -$8.7