Dalton — On Friday, July 31, the additional $600 in weekly federal unemployment benefits, which were part of the CARES Act, expired. A few days before that, I wrote about how, according to www.policyuncertainty.com, economic policy uncertainty was “through the roof.” Well, political risk is leading to column uncertainty. Specifically, I am uncertain whether between the time I submit this column and the time your eyes find it, if Congress might have written a passable fiscal stimulus deal for the White House to approve. Congress typically recesses for the month of August (that’s not a typo). However, on Saturday, Aug. 1, they…
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Be stingy with your equity
It can be tempting to offer shares of your company to finance its growth. However, with a pinch of creativity, using equity as a form of currency dilutes your position and may not be necessary. Rather than thinking of your shares as a currency to distribute lavishly, consider your stock the essential ingredient to growing your business value. Business owners benefit from issuing equity in lieu of paying higher salaries. Additionally, making employees owners aligns their incentives with the company, and can also be used to retain key employees. Trudie, the owner of a clothing retailer in southern Berkshire County,…
Call him Allen of the Berkshires
DALTON — What’s the obligation of any business to serve the community it calls home? By the very laws of business, none. That’s not the purpose of business. The purpose — plain and simple — is to make money, to grow, to make more money, etc. Unless, of course, your business is Berkshire Money Management, and you’re CEO Allen Harris. This might come off as a gush fest. To me, it’s Allen Harris’ love letter to the Berkshires, which he spells out in actions. I, as the writer, also want to be clear: While Allen’s firm is paying for me to…
Stocks fall as Congress fails to act
It should come as no surprise that our politicians failed to compromise on a new bail-out package this week. It is symptomatic of a country that suffers from a great philosophical divide. The only entity that investors can truly believe in is the Fed. Keep the faith. Chairman Jerome Powell, in his Thursday press conference after the two-day Federal Open Market Committee meeting, said the path forward is “extraordinarily uncertain.” As such, our central bank will remain accommodative, he promised, which means the financial markets will continue to be supported going forward. Readers should remember that. Over the long term,…
How much are your children worth?
In the weeks ahead, the Center for Disease Control (CDC) wants your children to go back to school. They say it is necessary because children need schooling from a social, emotional, and behavioral health perspective. No one disputes that, so why are American parents balking at the idea? The short answer is that they are afraid for their kids. It doesn’t take a rocket scientist to understand that kids in a classroom are “super spreaders” of virus. Just think of what happens during the Flu season each fall and winter Despite assurances from the CDC that death rates among school-age…
From China with love
Dalton — I’ve got a theory. And if I am right, the stock market is going to hit a short-term peak right about: NOW! OK, here it is. In response to the coronavirus pandemic, lots of countries are stimulating their economies via monetary and fiscal policy, right? Spain. The United Kingdom. France. Italy. Germany. Japan. Brazil. Canada. Australia. Turkey. Argentina. Indonesia. Saudi Arabia. Russia. Mexico. The U.S. And guess who else? China. OK, the good news is that when we finally get past COVID-19, whatever that looks like, there is going to be a pretty rockin’ economy. (Well, so long as…
Productize your service
The urgent steps we needed to take in response to the coronavirus are largely behind us. Some of the new tactics we employed will disappear (look-don’t-touch shopping), some of them were trends that accelerated (videoconferencing), and there are new ones we may keep using, such as paying home office stipends for workers to cover necessary supplies. According to Global Workplace Analytics, employers that allow employees to work from home part time save about $11,000 per year for each remote employee. Using some of those savings to invest in remote office setups will boost morale and productivity. Greg, the owner of…
Adviser keeps vigilant eye on assets, also scouts for opportunities
Real Money: Straight-up Answers with Berkshire Money Management DALTON — How can you tell when someone is going to have a future in the money business? Probably if he’s buying stocks in his teens and earning an adviser’s license while a junior in college. Nathan Tomkiewicz of Adams is a financial adviser with Berkshire Money Management, where he began as an intern at 19, working his way up while going to school; like his co-worker Lauren Russo, Tomkiewicz graduated from college a semester early to jump feet first into the business world. The Berkshire Community College and Massachusetts College of Liberal…
Bail out blues
Investors have been giving Congress the benefit of the doubt—until now. A long-promised second tranche of fiscal stimulus was supposed to be passed by the end of the month. The clock is ticking, but the horse-trading has just begun. On August 1, the rent is due for millions of Americans. The sunset of the $600 in additional weekly unemployment benefits legislation, which amounts to almost 60% of their benefit, will have expired unless Congress acts. The GOP has dragged its feet for almost two months, hoping that the economy would bounce back, and relieve them of their responsibilities. The GOP…
The weakening dollar
Sometimes, investors are so focused on the trees that they miss the forest entirely. Take the U.S. dollar, for example. It has been declining at an alarming rate, yet no one seems to care. Today, investors are so occupied by a number of trees—earnings, stock prices, dividends, earnings results—that a weakening currency is almost an afterthought. Unfortunately, if the dollar continues to weaken, it could radically change your investment choices. Most readers, in general, believe a strong dollar reflects a strong economy. The fact that it makes our exports more expensive, and imports cheaper, is also true. A strong dollar,…