I don’t know where I got this from, but a comment this morning reminded me of a story I heard a long time ago (and I will do my best to butcher my telling the tale from memory).
Imagine there is an island which only has 5 occupants … and the only item that exists is the coconut … and each person needs 1 per day to survive. Now let’s imagine one of these people is too old to work, meaning the others must produce 1.25 coconuts for the population to be fully fed. All is fine … and production continues in this fashion until, however, one of the other workers also becomes too feeble … and now 3 are supporting the other 2 … meaning that each now must “produce” 1.67 coconuts … and increase of 33% … just to maintain status quo. Even if one of the “older” inhabitants dies … the others still need to increase output … to the tune of 1.33 coconuts per day.
While this may seem like a silly tale … in reality … is it really that much different that the route upon which we find ourselves with an aging population? It appears to me quite obvious that without immigration (and this is not meant to be a discussion on legal vs. illegal) or an increase in children per family … we could one day find ourselves to be woefully in danger of running short of coconuts.
The Boeing problem continues in today’s news … as the plane involved with the recent crashes … the 737 Max 8 jet … is, reportedly, being grounded by an increasing number of nations pending investigation, understanding (and fixing) the cause behind these events.
Not only is this a reputational risk to the company … but CBS reports that “sales of the 737 Max account for roughly a third of Boeing’s profit” and “Boeing expects 737 Max models to make up 90 percent of 737 deliveries in 2019.”
So it is quite important that this highly-subsidized company (according to Subsidy Tracker, Boeing has received the largest amount of government subsidies in recent years) … solves the problem … and solves it fast.
Losing confidence of the flying public won’t bode well for an industry that is so dependent on client trust.
Meanwhile … there is some good … no, make that “great” … news today. Per the last story below, it is national pancake day … and IHOP is giving away free pancakes.
I was going to make a pancake joke
… but thought that would be too crêpe.
Have a great day,
Joseph G. Witthohn, CFA
Emerald Asset Management PA, LLC
610 Freedom Business Center Drive
King of Prussia, PA 19406
Direct: (610) 285-9905
… as of 11:46 AM today …
Quick Look at the News
Worried about the high cost of a college education? Well, how does the word "free" sound to you? There are certain schools offering free tuition ... but there are some rules to follow (CNBC)https://www.cnbc.com/2019/03/12/free-college-now-a-reality-in-these-states.html
... but this should be a bit of a relief to those who don't want to be burdened by educational debt ... especially now that some programs seem bound to go away (Forbes)https://www.forbes.com/sites/zackfriedman/2019/03/12/trump-proposes-to-end-student-loan-forgiveness-program/#27754e17415e
How bad is air pollution in certain areas? Worse than many thought, according to one study which gives the view that deaths - due to pollution - are double previous estimates (TheGuardian)https://www.theguardian.com/environment/2019/mar/12/air-pollution-deaths-are-double-previous-estimates-finds-research
... meanwhile ... people do care about their health ... especially what they ingest ... which is why Bumble Bee's use of blockchain could have a degree of appeal (Fortune)http://fortune.com/2019/03/08/tuna-blockchain-bumble-bee-sap/
Did you ever wait for an Uber, only to cancel ... when the car took too long to arrive? It might have been the driver "gaming the system" ... profiting from your decision to cancel the car (Mashable)https://mashable.com/article/uber-cancellation-fees-gaming/#lfhfN9u5GGqV
Okay ... you are pretty good at using email by now ... but you would still like to improve your response rate. Just include one word ... and you might see your response rate rise by almost 10%! (Inc)https://www.inc.com/chris-matyszczyk/adding-this-1-ridiculous-word-will-improve-your-email-response-rate-by-8-percent-says-a-new-study.html
... but there is another word that people really respond to: "free!" And today, IHOP is giving away free pancakes in honor of National Pancake Day. Things don't get much better than this (USAToday)https://www.usatoday.com/story/money/2019/03/11/ihop-free-pancake-day-back-tuesday-here-rules/3097920002/