College Student-Run Funds Are Shaping the Investors of Tomorrow – Bloomberg

This article, albeit from 2021.08.12, is related to my recent post on investors still holding out for GameStop. This article suggests: “the next generation of investors probably isn’t the average 31-year-old with a Robinhood Markets Inc. account. Instead, they’re more likely to come from the
college investment funds across the U.S. that give students the chance to manage serious money.” Sacramento State University also has a Student Investment Fund, which operates through the FIN160/MBA299A Student Investment Fund Management class: HTML. Let the article below be one more bit of motivation for students to be part of Student Investment Funds, such as that operated through FIN160/MBA299A here at California State University, Sacramento.

Enjoy the read,

-Dr. Moore

GameStop Investors Still Await Riches From Epic Short Squeeze – WSJ

Greetings everyone. It has been quite some time since my last post. This article was brought to my attention by a former student. It reminds me of readings on cognitive dissonance (HTML), the frog-in-pan theory (HTML), and epistemic trespassing (HTML). In short, some folks double-down on their wrong views (cognitive dissonance), hold on to their losing position as losses mount (frog-in-pan theory), and all the while speak outside their expertise as if they were an expert (epistemic trespassing).

May you find those three links and this Wall Street Journal article interesting…

-Dr. Moore

2 Key Ways Parents Can Raise Kids Who Are Eager To Do Chores : Goats and Soda : NPR

This is a very interesting read. I often hear from parents “my child doesn’t do anything but play video games.” Rather than blame the child, this article looks at the actions of parents in a child’s early developmental years. The article highlights two practices that contribute to helpful, cooperative, and kind children.

I would say this is a must read if you have young children. Implementing these practices now will make my life easier when they wind up in my finance class later in college. 🙂

-Dr. Moore

Bitcoin: A 1929-Esque Bubble (Cryptocurrency:BTC-USD) | Seeking Alpha

Here is an interesting article on Bitcoin. I have yet to purchase or short any cryptocurrency and have no plans to either. As Eknath Easwaran once said “there is nothing to be ashamed of in living a simple life.” I’m cool with a handful of stocks and mutual funds. I’ll pass on crypto and meme stocks.

Back to the article. I didn’t think about the environmental impact of mining bitcoins. As stated in this article, greater awareness of the negative environmental consequences may be the catalyst to burst this bubble. To think, the fervor driving up the price of Bitcoin induces more mining which leads to greater electricity use and environmental erosion.

Have a good week everyone,

-Dr. Moore

A Black Professor’s Colleague Called the Cops on Him. What the School Did Next Made It Much Worse. – Mother Jones

Back on June 5, 2020, I shared an NPR article “American Police”: HTML In that post I mentioned how the trauma we all saw unfold on television regarding cases like Floyd, Arbery, and too many others opened old wounds of an incident right here at Sacramento State. But if there is one positive of the turmoil of 2020, it is a raised awareness of the past, present, and future of race relations in the USA: HTML.

While reading The Color of Money: Black Banks and the Racial Wealth Gap by Mehrsa Baradaran (who happened to be born in Iran and immigrated to the United States in 1986), I came across this statement on page 58:

“In short, widespread prosperity engendered a culture of inclusion” [emphasis added]

Reflecting on what happened to me on September 10, 2018, in the full context of my experiences at the university, my life, and historical race relations in America, the connection between exclusion and concentrated prosperity came to the fore. Allow me to re-write Baradaran’s statement:

“In short, concentrated prosperity engendered a culture of exclusion

But there is a subtlety here that I would like to shine light on. In order for there to be concentrated prosperity, those at the top must benefit from the labor of others. Those at the top must reposses, take claim, reappropriate, and/or steal the fruits of the labor of others. This, unfortunately, is in the DNA of our country which has slavery in its foundation: HTML.

A funny story of a now-retired colleague’s grandchildren comes to mind. He said he knew capitalism was alive and well just from observing how his granddaughter and grandson (not sure how old they were, let’s say 6 and 4, respectively) handled their allotment of Cheerios. The elder granddaughter wanted to eat her little brothers Cheerios before eating her own.

Although possibly traumatic to read, let my story be encouragement for all people to become increasingly aware of the dynamics at play in our country and in our minds.

-Dr. Moore

Tesla is ‘profoundly overvalued,’ and its exclusion from the S&P 500 was a ‘brave’ decision by the index committee, DataTrek says | Markets Insider

In class today I talked about an interaction with my old boss 20 years ago. Our startup was acquired. The P/E rose to 400. I asked my boss “the market average P/E is 16, we are at 400, isn’t this overvalued? Shouldn’t I sell?” At the time he told me “your MBA does not apply anymore, it’s a new economy.” The stock went up in the next month or so from 180 to 250.

Within a year it came crashing back down from $250 to $3. I then asked my boss “does my MBA apply now?” He told me his wife was already upset with him.

So here we are today, 20 years later. TSLA has a P/E over 900. Does my MBA apply?

-Dr. Moore

The Past, Present, and Future of Race Relations in America

I learned many new things about American history in the past 3 to 4 months. It has been quite enlightening. As a result, I thought it would be nice to combine readings and videos I found informative into one post to share with others. This is a “living document.” As such, you may wish to bookmark this page and check back periodically. Feel free to contact me if you have any additions or corrections you believe suit the table below.

The Past / Present / Future flow arose while reading Siddhartha by Herman Hesse. That book presented an interesting question: if you stand in front of a river, where is the river? Like many of you, I thought “well, right there in front of me of course.” However, the river is more than in front of you. The river has a past, present, and future that are all connected. The river’s past began as snow in the mountains. The river’s present is right there before you. The river’s future is downstream flowing into the ocean, evaporating into the air, and returning as rainfall or snowfall.

So too is our life. So too is the experience of race relations in America. All represent a linked series of past, present, and future thoughts, actions, and consequences. Following that flow, I assembled a table on the Past, Present, and Future of race relations in America by topical area.

Allow me to highlight a few I found especially enlightening to recommend as a reading and viewing “starter pack.”

  1. NPR, American Police: HTML. Although listed in the “Policing, Past” portion of the table, it could easily have been placed in all parts of the table. If you want a good background of the evolution of race relations in this country, I find this an excellent starting point.
  2. King Cotton: The Truth About the Confederacy: HTML. This is #2 perhaps due to my professional bias. I teach finance, this video includes numbers.
  3. Dispelling the Confederate Monument Myths: HTML. From the same person as #2. In this he provides further context on what confederate monuments actually represent.
    2021.07.10 Update: NPR just did a story that confirms the context of confederate monument erection: HTML.

Okay, so those would be my top three. Yours may be different. If you finish those three and want recommendations for what to read/view next, I’d go with the “Housing, Past” and “Education, Past” portions of the table.

I’ll end with a quote from Kung-Fu:

If one dwells on the past, then they rob the present. But if one ignores the past, they may rob the future. The seeds of our destiny are nurtured by the roots of our past.

Policing– NPR, American Police: HTML.– PBS, FBI warned of white supremacists in law enforcement 10 years ago. Has anything changed: HTML.
– NPR, White Woman Fired After Calling Police on Black Man in Viral Video: HTML.
– NY Daily News, Starbucks manager called the cops on black men two minutes after they arrived for business meeting: HTML.
– CNN, Woman who called cops on Black man birdwatching in Central Park faces charges: HTML.
– Sacramento Bee, Proposed California law would make it a hate crime to call 911 because of a person’s race: HTML.
Housing– NPR, A ‘Forgotten History’ Of How The U.S. Government Segregated America: HTML.– The Guardian, CEO caught on video confronting neighbor over Black Lives Matter message: HTML.
– NPR, Parks In Nonwhite Areas Are Half The Size Of Ones In Majority-White Areas: HTML.
– New York Times, Black Homeowners Face Discrimination in Appraisals: HTML.
EducationRevisionist History Podcats, Miss Buchanan’s Period Of Adjustment: HTML.– Mother Jones, I’m a Black Female Scientist. On My First Day of Work, a Colleague Threatened to Call the Cops on Me: HTML.
– The State Hornet, Sac State professor apologizes for video featuring racial slurs, petition circulates for his removalHTML.
Slavery & DiscriminationDispelling the Confederate Monument Myths: HTML. (7.5 minutes)
The Truth About the Confederacy in the United States (Full 1 hour 40 minute version): HTML.
The Creator of Veggie Tales Gives a No-Nonsense History of Race in America in 17 minutes: HTML.
– Gimlet Media, Uncivil: A history podcast where we go back to the time our divisions turned into a war, and bring you stories left out of the official history: HTML.
– Brief story of how a colleague at Sacramento State University unnecessarily called the police on me, a fellow tenured finance professor: HTML.
– Jennifer Eberhardt TED Talk, How racial bias works: HTML.
– USA Today, ‘I’m leaving, and I’m just not coming back’: Fed up with racism, Black Americans head overseas: HTML.
EconomyKing Cotton: The Truth About the Confederacy: HTML.
– NPR, Patent Racism: HTML.
– New York Times, Extensive Data Shows Punishing Reach of Racism for Black Boys: HTML.
– New York Times, Income Mobility Charts for Girls, Asian-Americans and Other Groups. Or Make Your Own: HTML.
– Forbes, The 2% Solution: Inside Billionaire Robert Smith’s Bold Plan to Funnel Billions to America’s Black-Owned Businesses: HTML.
– McKinsey & Company, The economic impact of closing the racial wealth gap: HTML.

Rep. John Lewis, civil rights icon, original Freedom Rider, has died

As I read this article I could not help but think “Thank you, Mr. Lewis. May you rest in peace.”

I am a black American. I grew up in the Chicago area. I experienced racism growing up, as a young adult, and even as an old (okay middle-aged?) adult here at Sacramento State University. However, I did not have to endure the brutality that those before me endured, including Mr. Lewis. I thank those who came before me from the bottom of my heart. Thank you for sacrificing for what is just and right. Thank you to people of all races who fought and suffered for what is right. While in Napa a month ago I could not help but to thank those in the diverse crowd of BLM protestors for their support. I can’t describe the feeling of gratitude in words.

People may say today’s protests are more violent than those in the 1960s. That is patently false. As you read the USA Today piece you will see Mr. Lewis even endured a fractured skull for his peaceful protests. Again, thank you Mr. Lewis.  President Obama, while awarding Mr. Lewis the Presidential Medal of Freedom, said of Mr. Lewis:

“an American who knew that change could not wait for some other person or some other time; whose life is a lesson in the fierce urgency of now.”

As I face current issues at Sacramento State, and within the CSU system, I find inspiration and motivation from the elders. Stay tuned for more from me on this topic in the coming weeks…

Oh, and before I forget, please read the USA article and look at the pictures. There is a picture of Obama, Lewis, and Bush holding hands on the very same bridge that was part of the 1965 Selma to Montgomery Alabama march. To think, those gentlemen, in unity, commemorated a peaceful protest because the cause was just and remains just. It is a good visual of the unity this country should have, could have, and must have if we expect to prosper as a nation. Yes, I’m going to say it: our current President has proven incapable of getting us anywhere near that direction of unity. The former presidents in that photo demonstrated unity because it was what they believed in, not because it was a good photo op.

Let’s do better next go ‘round in November my fellow Americans.

-Dr. Moore

One graphic explains why Americans are facing an EU travel ban – CNN

A picture is worth a thousand words. As Americans argue, fight, and in some cases kill over disputes about “freedom” regarding mask wearing and lockdown orders, the EU daily new cases steadily declined. Take a look at the graph in the article below and ponder “how can we as a nation do better?”

Student Behavior Key To Reopening Colleges During Coronavirus Crisis : NPR

The California State University (CSU) system decided back in May to go online in the Fall. Given that the uncertainty that existed in May is still present today (hey, that rhymes), I believe it was the right call. For example, I don’t see how you can have all 30,000 students plus faculty and staff at Sacramento State compliant with mask wearing and social distancing. I can’t think of a plan that prevents virus spread (saves lives) that is robust to non-compliance without proven and readily available treatments.

Could you imagine the logistical nightmare of trying to implement an NBA season-restart “bubble” on every campus? In time, we will see the results of various attempts including the NBA bubble. Hopefully treatments (preventative and post-infection) come online soon.

Be patient my friends. Whatever arises, ceases.

-Dr. Moore