July 17, 2023

Dear Friends:

Predictions and Investment Lessons from the 1982 World’s Fair

In the summer of my (Mitch’s) fifth grade year my family went to the World’s Fair in Knoxville, TN.  In addition to having cool attractions like the Sunsphere and the world’s largest Ferris wheel at the time, the other big draw was that it was designed to be a showcase for all the latest amazing technologies and new inventions the world had to offer.  I remember there was even a remote-controlled robot that greeted us in the hotel lobby near the exhibits.  “Robots are the future” I remember the robot operator saying.  Wow – the idea of having your own robot in the early 80s was mind-blowing.

The other big prediction from the World’s Fair that year was that China was a rising power.  The largest pavilion at the 1982 exhibit was China’s.  China was proclaiming that it was going to be a global power and I remember many skeptics at the time and even in the early 90’s wondering how the country could even afford to present at the world’s fair much less become a world power.  The exhibit itself was only moderately interesting, far overshadowed in my mind by the Dippin’ Dots-type ice cream exhibit that was just outside (an innovation of the 80s by flash freezing ice cream in liquid nitrogen).

Fast forward 40 years and although it took a while – those 2 big takeway predictions from the World’s Fair have in many ways come to fruition.  Even though robots are only now really being used to do things like mow your lawn or clean your pool, the statement is actually true in many ways as robots are used to build and ship the items we use every day. In many ways our cell phones operate like robots, navigating while we drive and acting on voice commands.  And then there is China which now has the 2nd largest economy in the world and have completely modernized many of its major cities to become a player on the global stage.

It takes patience to see past today, make long-term investments and stay with them.  Whether it be investing decades ago in robotics and software companies like Google and Microsoft or the companies that capitalized on the growth of China, many have yielded amazing returns.   2022 was a hard year to stay invested, but it has paid off in 2023 year to date and we believe will continue to do so, and as some of the best companies in the world continue to innovate and grow so will our portfolios!  As for Dippin’ Dots – I still have a soft spot (or belly – pun intended) for that innovation!

Q2 and 2023 YTD – Excellent Performance for Portfolios

Despite challenging headwinds from persistent inflation, regional bank failures and fears of the federal government defaulting on its debt, we had strong portfolio performance during the quarter and YTD periods, led by US stocks up ~15% YTD.  In addition, the international markets have begun to recover (up ~10% YTD) as well, which we believe bodes well for diversified portfolios.

Get access to 3 month CD rates of 5.39% and non-FDIC fixed notes yielding 6.05%.

As interest rates have risen, banks have been slow to follow, so many clients have started to capitalize on our savings rates offered at significantly higher levels. We have excellent options through our CDARS program to be able to provide access to up to $10M in FDIC coverage at better rates with flexible terms. As always, we are extremely grateful for each of you and thank you for your partnership!



Mitch Anderson                                              Destin Tompkins