The Evening Read & the Chocolate Factory

Regretfully, tonight's reading material comes almost completely from the latest issue of the Economist. I have been at Albert J. Ellis airport (never head of it? Exactly.), where the wifi is woefully inept. I am also in mobile mode, so the headlines will not be linked. 

Nonetheless, here are some interesting reads. 

The tragedy of Argentina - (Economist)

Saudi America: the economics of shale oil - (Economist)

Soros trims Herbalife bet after gain that hurt Ackman's Pershing Square - (Bloomberg)

Rosenberg sees inflation after calling housing bust in recession - (Bloomberg)

I'll refrain from giving a complete breakdown of the trading action today, as the mystery will likely have been revealed by the time I get this latest rant off to the presses. I will say this: broad indices want to visit new highs, regardless of the length of their stay. Also, I will look to start taking some GLD profits off of the table. 

The Golden Ticket Illusion

I was struck by a thought while in flight: The ambition of man knows no bounds. Consequently, the skepticism of man knows no more tempting a target than ambition. 

With all of the recent talk of income equality, it is easy to be skeptical of one's ambition. And I am well aware that the privilege and influence of the grotesquely affluent often makes it seem as though the game is rigged. 

But I fear that the rage over inequality may grow so blind that instead of questioning Willy Wonka about his business practices and ensuring he is not bribing cocoa exporters, we will camp in mobs outside the candyman's shop and ransack the recent good fortune of Charlie's golden ticket. 

Let me go a little deeper into this analogy (even if it is rather terrible). 

Charlie, at first glance, was extraordinarily lucky. So much so that a bystander would not see anything more than the exuberant young man delighted that he is one of the chosen few, and ask "why not me?" But is he just lucky? 

His family, cramped beyond measure in a house not fit for a pet, presented him with what little money they could muster for his birthday. They insisted that Charlie take an enormous risk. Take that money and shoot for the moon. Not to mention the regular pain he must have put his digestive tract through with his dream-inspired chocolate consumption. 

In conclusion, yes, he was lucky. But he was also willing and encouraged by his family to take an adventurous risk and subject his body to enormous discomfort. And to the outsider, they might not have been aware of Charlie's situation before he struck gold. 

So, with regard to closing the gap between the haves and have nots, let us be sure that we do not bludgeon the "Charlies" of the world to death. 

Heads, it's chocolate. Tails, it's gold.