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

Emotional Numbness

The President has declared opioid usage a national health emergency, and I applaud anything to help those people trapped in addiction.  Missing from the discussion, however, is the historical sweep of drug addiction.  There has never been a time in my lifetime that there was NOT a drug problem of some type. As a boy, I remember my father making me watch a TV show…

Cold Reality

Iceland is a fascinating little island-nation with a population of a mere 335 thousand, much less than the city of Virginia Beach for example.  Often called the “land of fire and ice,” it is indeed a land of contrasts from glacier-covered active volcanoes to magnificent art galleries.  Despite a jaw-breaking language, the population is remarkably well-educated and well-read. While I believe that people are just…

A Fake Hatchet Job ?

Hundreds of times, I’ve posed the question of “is 6% a good portfolio return?”  The answer, of course, is — it depends!  If you take very little risk and get a 6% return, it is a good return.  If you take a lot of risk and only get a 6% return, it is a terrible return.  Your return has no meaning without knowing how much…

Parsing Capital Goods Orders

Economists have been waiting for the economic data to become misleading due to the impact of our terrible hurricane season.  Fortunately, the monthly “durables report” helps separate the one-time data from the more durable.  It is one of the more important monthly reports. Overall, capital goods order rose another 2.2% in September, following a 2.0% jump the previous month.  That is a very strong increase,…

It Matters

Janet Yellen has been Chairman of the Federal Reserve System since the retirement of Ben Bernanke, but her term expires in February, and President Trump is looking for her replacement.  She has indicated that she would like to continue in her current job, but is opposed by the Area 51 Republicans primarily because she was originally appointed by former President Obama.  The first choice of…

Clear Sailing

As a long-time member of the National Association of Business Economics, I follow their surveys closely.  In their latest, it is clear they see no prospect of recession during the next two years.  Here are some thoughts: Look at the sharp rise in earnings from the third quarter (Q3) of this year to the next quarter.  Obviously, other members are more optimistic than I am,…

A Time and A Place

During the Great Depression, Democrats faced a moribund economy and needed to jump-start it.  To do so, they adopted Keynesian economics which calls for deficit spending.  This is sometimes called “demand-side” economics and is the mirror image of “supply-side” economics, which has been adopted by Republicans. One calls for the government to increase its demand for goods & services, while the other calls for businesses…

Losing Our Focus

Political parties are obstacles to clear thinking.  My Democratic friends are incensed that Trump & Company colluded with the Russians, while my Republican friends call it a “big nothing-burger.”  Their thinking is polluted.  Neither has identified the all-important issue:  THE RUSSIANS HACKED OUR ELECTION!  We should be talking about punishment for the Russians.  We must have an agreement with the Russians never to do this…

Good Guy Finished First

University of Chicago professor Richard Thaler wins this year’s Nobel prize for economics for his groundbreaking discovery that human beings are . . . well, human! You see, for the sake of convenience, economists have always assumed that people act rationally, in their own best interest.  Supply-siders like to believe taxpayers would set aside any tax savings and invest it to “create jobs,” despite over-whelming…

Labor Market

Even though the United States LOST 33 thousand jobs in September, the jobs-market is HOT!  The unemployment rate is only 4.2%.  The more important U-6 level of unemployment, which includes the long-term unemployed and those only marginally attached to the workforce, like those who hold serial part-time jobs, has fallen to only 8.3%, which is the lowest level since 2007. The only reason the U.S.…

Advantage: Males ?

On the first Monday of each month, the Department of Labor releases its closely-watched “jobs report.”  Democrats focus on the unemployment rate and advocate more help for the unemployed.  Republicans focus on the labor force participation rate (LFPR) and complain people are obviously lazy.  (The LFPR loosely measures what proportion of the population either works or wants to work, with the rest being too lazy…

One More Time

I like guns. How many times have I started a blog with that simple statement?  After each mass tragedy, I try to explain all gun owners are not gun nuts and not all gun nuts are “Area 51” Libertarians.  There are degrees of madness. My father originally taught me about guns, when I was a little boy.  They were tools, like hammers or saws.  You…

Letting Grudges Go

Many times, my late mother cautioned me not to carry a grudge.  She wisely said the weight of that grudge gets heavier over time. I’ve just finished watching the epic new documentary by Ken Burns on “The Vietnam War” and  thought of her advice frequently.  That film is a seminal and definitive work on a long-running national agony and is highly recommended.  During the closing…