SUNSET AT THE LAKE.

The Picture Speaks for Itself. This is one of the most beautiful sunsets I have seen. It appears to be the result of a combination of water vapor, clouds, and light, having occurred right after a moderate rain storm. Of course, you might want to say that God created it and sent it to us.

Hedging Your Bet With Options. I know I have talked a lot about options; however,I doubt that many of my readers have tried to apply them to their investment philosophy. Some don't want to bother, while others stay with the notion that options are too risky. The best way to demonstrate the conservative nature of an option strategy known as covered calls is to give you an example of my own experience. I little less than two years ago I bought 1000 Shares of AT&T. A year later, I bought another thousand shares. Unfortunately, my timing wasn't the greatest and the shares are now worth only 25.05 for a paper loss (since I haven't sold) of $6,100. To lose $6,100 from my investment portfolio would be a disaster for me; however, there is more to the story. Over this ownership period, I sold numerous calls (which give the purchaser the right to buy my stock at a pre-specified price). For this, I received call premiums of just over $7900. Subtracting that from my loss gives a profit of $1,800. Looked at another way, I started with 2000 shares and I still have 2000 shares but I received $7,900 cash flow in the interim. I also received $3,700 in dividends for a total cash flow of $11,600 that I could re-invest or pay my utility bills if I choose. This illustration demonstrates 2 things: 1. The conservative nature of some option strategies and 2. The importance buying investments that produce cash flow rather than depending on buying at a low price and selling higher.

Who Is A Racist. In a way, we all are are racist to a certain degree but many of us have made considerable progress in overcoming bigotry and judging people as individuals rather than as members of a racial or religious group. Still, we receive virtually no credit for the progress we have made since I was a 10-year old at Fruitdale School. That's why I feel insulted when backers of the current president accuse me of being a racist when I disagree with his policies. Likewise, I resent those who would call me a racist because I want to control who is allowed to come into our country. Jessie Jackson views LeBron James as a runaway slave. I view him as a young man of many talents who used his freedom to move to a position more suited to accomplishing his goals. Which one of us is a racist?

I Will No Longer Avoid Controversy. There is considerable controversy in our society. Both right and left leaning voters have strong negative opinions about the other. Both are entitled to their opinions and I plan to use this forum to state mine. Readers can feel free to comment. I reserve the right to eliminate those who exhibit excessive hostility in response.