June is named after Juno, queen of the gods in Roman mythology. Concerning queens, Netflix currently has on offer The Queen’s Gambit, a story about an orphaned girl who masters the game of chess. Watching this series reminded me of long-ago rainy afternoons playing chess with my father, and prompted me to pull my old set out of the closet, set up the pieces, and play against myself. In the process, I was reminded of some important lessons …
The Money Game – Playing chess, along with my college courses, led me to once believe that ‘the money game’ was all about strategy and numbers. Eventually, I learned there was more to it. The money game, like chess, requires intelligence, focus, and strategy. In addition, the money game requires understanding additional factors. Outcomes in the money game are also influenced by the flows of money, the stories of the day, and most important … the beliefs of the other players. Looking at today’s markets, I wonder if reading Lewis Carroll’s The Adventures of Alice in Wonderland might have provided a better education. Crypto, anyone?
One of the best examples of man vs. markets occurred 300 years ago. Sir Isaac Newton was a brilliant English scientist, mathematician physicist, and astronomer. He nevertheless lost a fortune, having been drawn into the market mania known as the South Sea Bubble of 1720. His conclusion … “I can calculate the motion of heavenly bodies, but not the madness of people.” The great thing about reading history is that it provides insights without having to experience the pain firsthand. With chess, the lessons are also painless and universal … focus on defense, and take care of your queen. Ignore these maxims at your own peril.
Viewing Tip – My Octopus Teacher – A 2021 Academy Award winner. This beautifully filmed documentary tells the story of a South African diver who befriends an octopus and regains purpose in life. The trailer is here. Available on Netflix.
Reading Tip – My all-time favorite books on the market - The Money Game and Super-money by ‘Adam Smith’ (George J.W. Goodman). Published in 1968 and 1972 respectively, both remain insightful and entertaining reads on Wall Street goings-on, human behavior, psychology, and perceptions vs. reality. The prose sings. Available on Amazon.
Best wishes for June, and good luck in all your games.
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Copyright © 2021 - Any opinions are those of James Aldendifer and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Investing involves risk and you may incur a profit or loss regardless of the strategy selected. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.
