Ask and Ye Shall Receive

I have an excellent friend who is a master musician, educator and one of the best jazz guitarists living today. Yes, he’s taught me about music, but one of the things I remember most that he taught me is how to be unashamed when asking for something. “Jim, if you don’t A-S-K, you won’t G-E-T,” is the way he framed it. So, with that spirit in mind, it’s time for another edition of The Deep Woods “Ask Me Anything.” Alright, let’s G-O!

Marvin K. from the Bahamas asks: “Jim, what’s the deal with the government getting into the semiconductor business and owning Intel? Isn’t this something you’d be against as someone who claims to be a free market guy?”

The answer is I am against it, Marvin, although I’m not opposed to making money on the situation by buying some Intel (INTC) stock and some well-positioned call options in my Tactical Trader service. As a self-described radical for capitalism, I am for the complete separation of government and private enterprise. That means no corporate welfare, no corporate bailouts and no government stakes in semiconductors under the banner of “national security.”

If Intel cannot make a profit on its own, then let it fall into the abyss of once-proud companies that just got outcompeted by others who do things better and more efficiently. And in the case of Intel, it just reeks of a kind of “socialism light” that will taint the scent of freedom and likely Intel’s own decision making.

As Joe Lancaster writes in Reason.com, “Every part of this transaction flies in the face of any sincere interpretation of free markets, including the Biden administration’s original sin to approve billions of dollars for a struggling company. It is perhaps telling that as Reason’s Eric Boehm noted last week, the idea that the U.S. government should take a piece of Intel in exchange for CHIPS Act funding was first floated by Sen. Bernie Sanders (I–Vt.). Trump and his allies are now issuing talking points that could have come from the socialist senator himself.”

When it comes to socialism, either from Democrats, Republicans or Independents, count me as part of the rational and philosophical opposition.

Of course, as I mentioned a moment ago, this doesn’t mean that INTC shares aren’t going to benefit, and it doesn’t mean that investors should shun them. I certainly am not, as I will invest where my money is treated best — as that is also the rational play.

Sylvia P. from Las Vegas writes: “I know you were in the military, so I was wondering what your favorite war movie is, and why. Thank you for your service.”

Thank you, Sylvia, I’m grateful for the appreciative sentiment so many Americans voice for our men and women in uniform, past and present.

While there are many war films that I like (and many I very much dislike), you might be surprised to learn that my favorite war film, and indeed one of my favorite films of all time, is Francis Ford Coppola’s surreal masterpiece, “Apocalypse Now.”

If you’ve seen the film, and I suspect most of my readers have, then you likely understand that this is much more than just a Vietnam War film. Instead, it’s a meditation on the heart of darkness that lies within us all, a darkness that is mostly contained under the surface of our modern societal norms.

One personal reason why I like this film so much is because the story is based on the classic work by author Joseph Conrad, “Heart of Darkness.” I wrote extensively on this work while doing my undergraduate work at UCLA, so my familiarity with Conrad and with Coppola’s interpretation and resetting of the story to the Vietnam War was both fascinating and illuminating.

I’d like to think I learned a lot about literature, film and the darkness that lies in all of our hearts as a result of my study of “Apocalypse Now” and “Heart of Darkness,” and maybe also from my own experience as a soldier.

Kyle from Ohio writes: “What are your thoughts on ‘Fed independence’ and the attempted ouster of Fed Governor Cook? Should we worry about this?”

Interestingly, I read something this morning from my colleagues at DayTradeSPY that I thought was pretty much spot-on regarding this subject. Here’s how they discussed this issue today:

“The outcry from some continues. Former FOMC member turned Biden administration participant Brainerd dramatically lamented the possibility of rising inflation, long-term rising inflation and a host of other ailments that would arise if the ‘politics’ continue re the Fed. News flash: the Fed is political and has been since its inception. The Fed was created to be controlled by its creators (read about Jekyll Island), and they get upset when someone else tries to wrest control or at least get the Fed to be the apolitical body it professes to be. To me they are missing the real point presented. All this turmoil and gnashing of teeth simply presents some of the best evidence for why there should be no Fed at all. Why employ a group of 12 people with their biases replacing the aggregation of millions upon millions of participants in free markets? The conclusion can be but one thing: for control. Not benevolent, but what control in governing bodies always becomes: control for those in control. Just avoid the problem and let free markets set rates. Certainly world bond markets are large enough to do that.”

I think this sentiment, especially the part about letting the free market set rates, is the real rational response to the whole Fed independence issue. That said, If you are going to have a Fed, the more independent it is from politics, the better that is for markets and the economy at large.

If you have a question you’d like me to address, all you have to do is send me an email.

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Only Tough Folks Do

Life ain’t fair

Saddle up, boy, and see it through

Tough times don’t last

Only tough folks do

–American Aquarium, “Tough Folks”

Last week, I had the privilege of seeing my friend BJ Barham, front man of the southern folk rock band American Aquarium, do a solo acoustic show at a small club in Hollywood. BJ’s brilliant storytelling and intimate performance was truly amazing, as he let us in his head and heart and wouldn’t let go.

Your editor with the great BJ Barham of American Aquarium.

If you ever have the opportunity to attend a small and intimate solo acoustic show like this, I highly recommend doing so. Most singer/songwriters live to share their hearts with others, because as humans, that shared sense of experience is what we all crave — and it’s what we all need.

Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. Click here to ask Jim.

In the name of the best within us,

Jim Woods