The Flinchum File

Thoughtful Economic Analysis and Existential Opinions
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Welcome to The Flinchum File

I am an Accredited Investment Fiduciary at Bay Capital Advisors, an investment firm headquartered in Virginia Beach, VA. After retiring from Truist Bank, I started this firm to work more closely with a smaller number of clients, and it has been great! Our client load is about 25% of the national average.

Writing is not for the shy or the meek. It exposes a person’s mind and character. I hope you enjoy the view.

The opinions expressed in The Flinchum File are those of the writer, Jim Flinchum, and do not necessarily reflect those of Bay Capital Advisors, LLC

Generational Baggage

It’s hard not to think of particular individuals when reading a book about people.  I’ve been reading The New Retirementality by Mitch Anthony, and it is a “must-read” for Baby-Boomers.  It reminds me of the many, many Baby-Boomers I have talked with, who are bitter and disappointed that they will not enjoy the retirement their parents did.  Their parents were usually more frugal but still spent…

Hitting the Snooze Button

During the past month or so, the previously-scary stock market has been pleasantly tranquil.  I expect it will remain that way another week or so. In the meantime, the Fed holds its annual symposium in Jackson Hole, Wyoming.  This is an important meeting of central bankers worldwide (except ECB’s Draghi).  It is very informal, with the most important conversations held in hallways and outdoors, viewing…

Romney’s Real Religion ?

Ever since Ronald Reagan accepted the teachings of Arthur Laffer and became a born-again Supply-sider, Republicans have been required to genuflect on the altar of Supply-side economics, which believes that leaving money with the rich allows them to create jobs. Since Romney is a member of the wealthy 1% and only paid 14% of his income in taxes, it is reasonable to assume he was…

The Gold Standard or Constitutional Discipline?

Largely as a result of Ron Paul’s remarkable organizational abilities during the long Republican primary, the party platform will, for the first time in twenty years, advocate a return to the gold standard.  This strongly appeals to those who believe it will automatically limit spending.  As usual, it is more complicated. America was on the gold standard until President Nixon took us off of it…

The Joy of Intelligent Voters

Readers know I divide the world of economics into three schools.  There is the Austrian or “Tough Love” school that argues a balanced budget is essential every year.  There is the Keynesian school that argues deficit spending is essential when the economy is weak.  Then, there is the Supply-side school that argues a cut in the highest marginal tax rate is always essential.  No one…

An Expensively Sweet Subject

Recently, Mayor Bloomberg of New York City proposed a prohibition on sugar drinks larger than 32 ounces.  My first thought was . . . NANNY STATE – I don’t need no government bureaucrat telling me what to eat or drink.  I still feel the same way. Later, I read Mayor Bloomberg’s reasoning that obesity was driving up his health care expenses, which he was trying to…

The Bull Days of Summer

Readers know I’ve been increasing cash for the last few months, expecting possibly severe turbulence the rest of the year.  But, the market has been drifting upwards over the last six weeks.  Does that mean the bull has returned?  In a word . . . No! I would be more likely to believe the bull had returned if trading volumes had increased.  That would suggest…

First Guest Blogger

Most blogs allow for readers to post their comments and react to whatever the blogger wrote.  This blog does not permit that . . . and for a very good reason — securities regulators are like traffic police, i.e., they are humor impaired. If a client responded to something I wrote with a kind word, I would be in trouble with the regulators for allowing…

But, Everybody Else Is Doing It . . .

John Kenneth Galbraith was a famous Keynesian economist who wrote an influential book entitled The Affluent Society in 1958 and contributed a useful phrase to the American way of speaking — “conventional wisdom.” It can refer to anything that is commonly accepted among others, kinda like saying “everybody else believes this is true, so don’t bother me with any other facts.” According to “conventional wisdom,” hedge…

The Romney-Rand/Ryan Ticket

I have a long-time love/hate relationship with Ayd Rand, who wrote many things, including the powerful Atlas Shrugged.  I believe I have read everything she ever wrote and have seen movies of several of her works.  As a writer, I respect and envy the clarity with which she writes.  As a writer, I understand why she colored her characters in such black & white terms of…

The Cost of Being Civilized?

My first assignment as a graduate assistant years ago was to research and teach a class on a theory of motivation by Victor Vroom from the University of Michigan.  His theory was a giant step forward in the ability to “quantify” motivation.  Basically, it says my motivation to do something is a function of (1) how bad I want it to do it and (2)…

“The Righteous Mind”

I enjoy watching Greta van Susteran on right-wing Fox News.  I enjoy watching Rachel Maddow on left-wing MSNBC.  And, I enjoy watching Fareed Zakaria on semi-centrist CNN.  When he recommended this book by Jonathon Haidt last week as “required reading,” I decided I would read it.  Humorously, Haidt appeared on Zakaria’s show this morning, after I went to the trouble of reading his book. Sadly,…

Something For Everybody

Everybody must have been happy yesterday, because the Dow rose 217 points, to the highest level in 3 months. The Republicans were happy because they could lament the fact that unemployment rose from 8.2% to 8.3%  More significantly, the combination of unemployed plus under-employed (called the U-6 rate) rose to a scary 15%.  The Democrats were happy because 163 thousand jobs were created, far more…

Philosophical Consistency or Political Expediency

As a boy, I was taught that gentlemen don’t discuss politics.  As a candidate in Army OCS, I was instructed never to engage in partisan activities, especially anything controversial.  Not surprisingly, I still avoid all things Republican or Democrat.  And, most of all, I RUN from any discussion of abortion politics! Imagine then my consternation at a recent dinner party when I was seated next…