Business Activity & Royal 👑 Self Neglect

The First Word        

Not much was released on the data front last week, and what there was made most observers wish it wasn’t announced either. 

The Institute for Supply Management’s (ISM) Services showed the headline index declined to 50.3, below the most pessimistic forecasts out there. Business activity fell to a new low for 2023. Companies indicated they are pausing hiring until there’s a better understanding of where the economy is heading. Hopefully the economy isn’t heading where the ISM’s Manufacturing Index has been. For seven months in a row, it's been below 50, meaning contraction.

Compared To What        

Returns of the SPDR S&P 500 (-7.66%), the iShares Core Moderate Allocation ETF (-9.7%) the iShares Core Conservative Allocation ETF (-9.95%),and the iShares Core US Aggregate Bond ETF (-11.04%) January 1st, 2022 through June 9th, 2023.

This Week In History        

On June 12th, 1997, a replica of William Shakespeare’s Globe theatre opens in London with a performance of Henry V. 

Constructed of English Oak timber framing without using structural steel and featuring the only thatch roof permitted in London since the Great Fire in 1666, Shakespeare’s globe seems like a throwback to an earlier age. Yet while the old Globe was destroyed by fire in 1616, the new version is made possible by technological advances in fire retardant materials and modern sprinkler systems, demonstrating the ongoing march of technology. Shakespeare’s story of Henry’s 1415 invasion of France to enforce his ancient and somewhat tenuous claim to the French echoes the theme. It is, after all, the technology of the English longbow, not just Henry’s “Band of Brothers” speech that wins the day at the Battle of Agincourt.

Henry V, the historical figure and central character of Shakespeare's play, offers several financial lessons through his actions and leadership. Here are some key financial lessons that can be derived from Henry:

1.   Effective financial planning: Henry V demonstrated the importance of meticulous financial planning. Before embarking on military campaigns, he carefully assessed the financial resources at his disposal and strategically managed his expenditures to ensure the successful execution of his plans. Know where the nickels are going and the dollars will take care of themselves. 

2.   Efficient taxation: Henry V implemented fair and efficient taxation policies. He ensured that taxes ware levied fairly and used responsibly to fund his military campaigns and maintain the stability of his kingdom. Make sure your tax planning is efficient. Fair is another matter altogether. 

3.   Strategic investments: Henry V understood the potential benefits of strategic investments. He invested in military infrastructure, such as building ships, fortifying castles, and improving weapons, to strengthen his kingdom's defense capabilities. Your investments should have a mix of offensive and defensive capabilities too, depending on your risk tolerance and overall strategy. 

4.   Long-term vision: Henry V exhibits a long-term vision by prioritizing the stability and growth of his kingdom. He foresaw the potential economic benefits of expanding his territories and takes calculated risks to achieve his objectives. making informed financial decisions aligned with long-term goals. If your goals are long term, your strategy and tactics should be too.

All the world is a stage, and we are merely players. Ignore financial planning, goal setting and tactical analysis at your peril. As Shakespeare wrote in the play: “Self-love, my liege, is not so vile a sin, as self-neglecting.”

Compliance Stuff        

The views expressed within this newsletter are subject to change at any time without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security or strategy. All investments carry certain risk and there is no assurance that an investment will provide positive performance over any period of time. Past performance is not a guarantee or a reliable indicator of future results.

Patrick Huey is an investment advisor representative of Dynamic Wealth Advisors dba Victory Independent Planning, LLC. All investment advisory services are offered through Dynamic Wealth Advisors. Patrick Huey is the author of two books: "History Lessons for the Modern Investor" and "The Seven Pillars of (Financial) Wisdom"; this is considered an outside business activity for Patrick Huey and is separate and apart from his activities as an investment advisor representative with Dynamic Wealth Advisors.