Topley’s Top 10 – September 29, 2020

1. Zombie Company’s Grew During Covid.

Barrons

How do you identify a zombie firm? Principal Global offers a guide: companies that can’t cover interest costs twice with the previous year’s pretax earnings; whose spread between return on equity and cost of equity is less than four percentage points; whose one-year and average three-year sales growth is less than 3%; and whose Altman Z-Score—a measure of liquidity, solvency, and profitability sometimes used to predict bankruptcy—is below 1.8.

The Pandemic Has Swelled the Ranks of Zombie Companies. Here’s How to Recognize Them.

Alexandra Scaggs

https://www.barrons.com/articles/fed-signals-near-zero-rates-through-2023-even-if-recovery-quickens-51600281377

2. Bull and Bear Markets Since 1900…Alternating Cycles.

A long-term perspective of the Dow Jones Industrial Average DJIA since 1896 reveals the reality that there are extended periods of time in which the US equity market will generally trend upwards and also extended periods where the market will instead stagnate or move generally lower. There have been nine such alternating cycles completed since 1896, with each averaging 14 years.

Nasdaq Dorsey Wright.

www.dorseywright.com

3. The History of Public Debt Vs. Interest Rates.

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Holger Zschaepitz

@Schuldensuehner

4. Inflation…Stuff We Want is Pricier…Stuff We Don’t Want is Cheaper.

Zero Hedge

“Inflation Is Already Here”: The Fed May Have A Major Problem On Its Handsby Tyler Durden

https://www.zerohedge.com/economics/inflation-already-here-fed-may-have-major-problem-its-hands

5. Commodities and Sharp Increases in Inflation.

Commodities: Here is how key commodities performed during previous sharp increases in inflation expectations, according to Morgan Stanley.

Source: Morgan Stanley Research

The Daily Shot https://dailyshotbrief.com/the-daily-shot-brief-september-28th-2020/

6. Covid Gottlieb Update

Scott Gottlieb, MD

As reported Covid cases continue to rise around the U.S., the number of Covid hospitalizations – which is an important, objective measure of total disease burden – have stopped their decline, and may be starting to increase again.

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https://twitter.com/ScottGottliebMD/status/1310190199339655168/photo/1

7. There are four coronavirus vaccines in late-stage studies — here’s how they differ

Jaimy Lee

The vaccine candidates vary on everything from refrigeration needs to effectiveness goals and number of doses

Johnson & Johnson’s investigational COVID-19 vaccine entered Phase 3 clinical trials this week, making it the fourth vaccine candidate in the U.S. to do so and providing additional details that can help investors differentiate the pool of late-stage coronavirus vaccines.

Shares of J&J JNJ, +0.99%  were up 0.3% in trading on Friday, two days after the health care giant announced it had dosed the first of an estimated 60,000 participants in the Phase 3 trial for Ad26.COV2.S, which is also referred to as JNJ-78436735.

J&J’s vaccine candidate joins a group of late-stage vaccines being developed by AstraZeneca AZN, -1.36%   AZN, -0.78%  and the University of Oxford, BioNTech BNTX, -0.28%  and Pfizer Inc. PFE, +0.94%, and Moderna Inc. MRNA, +1.55%  At least three other vaccines developed by Inovio Pharmaceuticals Inc. INO, -28.33%, Novavax Inc. NVAX, -2.09%, and Sanofi SNY, +0.43%   SAN, +0.82%  are also being tested in early- and mid-stage clinical trials in the U.S.

One of the unique characteristics of this race to develop a vaccine is how different the candidates are, down to the type of vaccine.

“We have three categories of vaccines that are moving forward: there’s protein vaccines, which are coming with an adjuvant, to make them [stronger], we have the nucleic acid vaccines, and we have the viral vectors,” said Dr. Corey Casper, president and CEO of the Infectious Disease Research Institute, a not-for-profit biotechnology organization. “There’s pluses and minuses of all of them. None of them are perfect.”

Here’s what we know so far:

Vaccine type: The AstraZeneca and J&J vaccines are viral-vector vaccines, while Moderna and Pfizer’s candidates are messenger RNA vaccines. An mRNA vaccine has never been approved by the Food and Drug Administration, while there is only one approved viral-vector vaccine, Merck & Co. Inc.’s MRK, -0.20%  Ebola vaccine, which received FDA approval in December of last year. The Novavax vaccine, which is expected to soon move into Phase 3 trials, is a protein-based vaccine, similar to the common flu shot. The challenge with this type of vaccine, despite its proven safety profile, is that it often requires an adjuvant to boost its effectiveness. Dr. Michael Farzan, a professor of immunology and microbiology at the Scripps Research Institute, this week told Mizuho Securities analysts that it’s easier to quickly ramp up production of an mRNA vaccine, but it may be more difficult to scale this kind of vaccine.

Trial size: J&J is the leader in terms of trial size, with plans to enroll 60,000 participants. AstraZeneca, BioNTech/Pfizer, and Moderna each committed to enrolling 30,000 participants, though BioNTech and Pfizer recently expanded their target group to 44,000 people.

Dosing: J&J’s vaccine is the only single-dose vaccine to enter late-stage studies in the U.S., though separate clinical trials in Northern Ireland and the U.K. will test a two-dose regimen. The other three candidates require two doses, spaced between roughly three to four weeks apart, depending on the vaccine. “The single dose could be a source of commercial differentiation, and also means [J&J’s] pivotal trial could read out more quickly (since it only takes one dose to immunize a person, not two doses spaced a month apart),” Bernstein’s Vincent Chen wrote on Sept. 17.

Adherence to medication in the U.S. is a well-documented issue — one study estimates that 1 of 8 Americans prescribed drugs for atherosclerotic cardiovascular disease don’t take them, citing cost, while other research found that up to 30% of prescriptions are never filled. However, GlaxoSmithKline GSK, +0.15%, which markets the Shingrix shingles vaccine, has data through March showing that 80% of people return for the second and final dose of the vaccine, according to a company spokesperson.

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Refrigeration requirements: BioNTech and Pfizer’s vaccine, BNT162b2, and Moderna’s mRNA-1273 are both mRNA vaccines that require freezing levels of storage, in the range of negative 94 degrees Fahrenheit for BNT162b2 to negative 4 degrees Fahrenheit for mRNA-1273. AstraZeneca’s vaccine will likely require refrigeration but not freezing, according to a company spokesperson. “Our current expectation is that the final packaged multi-dose vials will require refrigeration to ensure product quality,” he wrote in an email. It’s unclear at this time whether J&J’s vaccine will require refrigeration or freezing.

The need to refrigerate vaccines generally (and not just the COVID-19 ones) has long been an issue for vaccination programs, according to Casper. ”Even in highly industrialized countries…it is very challenging to keep vaccines refrigerated, just at refrigeration temperatures,” he said.

Effectiveness goal: The FDA in June issued guidance that called for COVID-19 vaccines to be at least 50% effective at preventing infections with COVID-19 or by reducing severity of disease. AstraZeneca’s candidate is targeting an effectiveness rate of 50%; however, the effectiveness goals for BNT162b2, Ad26. COV2, and mRNA-1273 are 60%, according to the individual trial protocols.

Dr. Stanley Plotkin, a vaccine expert and a former pharmaceutical executive, this week told SVB Leerink analysts that achieving between 60% and 70% protection should aid “long-term containment of the pandemic,” though he doesn’t expect the first generation of COVID-19 vaccines to achieve those efficacy levels.

Timeline: Despite the prevalance of vaccine timeline talk among administration officials, companies have been cautious sharing dates for when they expect to publish the first batches of Phase 3 data. Here’s a tally created by Mizuho’s Difei Yang: Though AstraZeneca’s trial in the U.S. is still on hold due to an adverse event, the company previously said it expected to get late-stage data by the end of the year, Moderna expects a Phase 3 readout in “November or December,” and BioNTech and Pfizer expect Phase 3 efficacy data by the end of October. J&J said this week it expects to file for an emergency use authorization in early 2021.

The race so far: Analysts have mixed views on which vaccine is the front-runner. SVB Leerink analysts told investors in a Sept. 18 note that the trial protocols seem to favor BioNTech and Pfizer, when compared with Moderna. J.P. Morgan said Sept. 22 that the Phase 1 data provided so far by AstraZeneca, BioNTech/Pfizer, and Moderna didn’t have a “real standout in terms of the safety profile. That said, mRNA-1273 tends to have slightly higher rates of fever, chills, headache than competitors.”

So far this year, AstraZeneca’s stock is up 8.1%, shares of BioNTech have rallied 87.9%, Pfizer’s stock has dropped 8.8%, J&J’s stock is down 0.5%, and shares of Moderna have soared 250.4%. The S&P 500 SPX, +1.61%  is up 0.5% year-to-date. 

https://www.marketwatch.com/story/there-are-four-coronavirus-vaccines-in-late-stage-studies-heres-how-they-differ-2020-09-25?mod=home-page

8. Source of U.S. Government Receipts

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Mario Gabelli

9. Psychological Tricks to Make You Pay More

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Daniel Crosby –Chief Behavioral Officer at Brinker Capital

https://www.linkedin.com/in/danielcrosby/

10. Work Smarter, Sooner

How to develop a strategic mindset

September 27, 2020 | Creativity

It took me a long time to learn the difference between working harder and working smarter.

Jason, my husband, also got pretty far in life on sheer work ethic. Growing up, we’d powered through difficulty by staying up later, waking up earlier, and bearing down on the problem at hand. Grinding became part of our identities, a strength we were proud of and assumed could be deployed in nearly any challenge.

But at some point, each of us discovered that working harder isn’t always the solution.

In my freshman year of college, for instance, I nearly failed neurobiology as a result of my tried-and-true “work harder” mentality. I’d assumed that if I sat in the front row at lectures, took assiduous notes, and then spent hours and hours rereading those notes, I was nearly guaranteed an A.

After bombing the hourly exam and then the midterm, I realized I needed to change my approach. I attended office hours religiously. I began asking more questions in class (“I’m sorry, professor. I don’t understand what you just said. Can you explain that equation again?”), and working through practice problems rather than re-re-re-reading my notes.

The happy ending of that story is that I passed the class and graduated college—with neurobiology as my major.

For Jason, working double the hours of anyone else was the way he got everything done. Then he married a wife with a pretty demanding career, and we had two children. Suddenly, staying at the office until late in the evening wasn’t a viable option.

So Jason had to think about how to work more efficiently. He delegated more responsibilities to people on his team. He prioritized and learned to let go of items low on the list. He established an advisory board to help him think through his company’s most challenging problems.

The happy ending to his story is that his business continued growing (and we stayed married).

Can the young people in your life learn the virtues of working smarter earlier in life than Jason and I did? New research by psychologist Patricia Chen suggests so. In one experiment, Chen and her collaborators asked students to try a challenging, unfamiliar task, where they competed to separate more egg whites. Half of the students first read a short article about how successful people adopt a strategic mindset, periodically taking a step back from what they’re doing to ask themselves questions like: How else can I do this? Are there things that I can do differently? Are there ways to do this even better? Compared to a placebo control condition, students encouraged to adopt this strategic mindset tried more strategies and performed better.

Don’t preach the gospel of hard work without preaching the gospel of smart work.

Do model, explicitly, what it means to approach challenges with a strategic mindset. The next time you’re frustrated—whether it’s opening a jar of pickles, managing your Zoom account, or figuring out how to handle logistics for this school year—wonder aloud, “How else can I do this? Whom can I ask for advice? Is there an approach I haven’t thought of?” And when at first you don’t succeed, ask, ask again.

With grit and gratitude,
Angela

https://angeladuckworth.com/

Disclosure

Lansing Street Advisors is a registered investment adviser with the State of Pennsylvania..
To the extent that content includes references to securities, those references do not constitute an offer or solicitation to buy, sell or hold such security as information is provided for educational purposes only. Articles should not be considered investment advice and the information contain within should not be relied upon in assessing whether or not to invest in any securities or asset classes mentioned. Articles have been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Securities discussed may not be suitable for all investors. Please keep in mind that a company’s past financial performance, including the performance of its share price, does not guarantee future results.
Material compiled by Lansing Street Advisors is based on publicly available data at the time of compilation. Lansing Street Advisors makes no warranties or representation of any kind relating to the accuracy, completeness or timeliness of the data and shall not have liability for any damages of any kind relating to the use such data.
Material for market review represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results.
Indices that may be included herein are unmanaged indices and one cannot directly invest in an index. Index returns do not reflect the impact of any management fees, transaction costs or expenses. The index information included herein is for illustrative purposes only.

Topley’s Top 10 – September 28, 2020

1. Small Caps Have Historically Outperformed Large-Cap Post Trough

2. Blackrock…U.S. Inflation Market Pricing vs. Our Estimate 2015-2025

Chart of the week
U.S. inflation market pricing vs. our estimate, 2015-2025

U.S. inflation market pricing vs. our estimate, 2015-2025

Forward-looking estimates may not come to pass. Sources: BlackRock Investment Institute and the Federal Reserve with data from Refinitiv Datastream, September 2020. Notes: The chart shows a market measure of what five-year inflation expectations based on the consumer price index (CPI) will be in five years’ time. We show it using the five-year/five-year inflation swap. The line is shifted forward five years. The orange dot shows the BlackRock Investment Institute’s current estimate of average U.S. CPI inflation for the same five-year period of 2025-2030.

We expect annual growth in the U.S. consumer price index (CPI) to average in the range of 2.5% to 3% between 2025 and 2030, as the chart shows. This is broadly consistent with inflation moderately above the Fed’s 2% target (CPI inflation tends to run above the Fed’s preferred gauge based on the personal consumption expenditures, or PCE, price index), and a jump from current market-implied inflation. Rising global production costs are the trigger. The Covid shock is driving up costs in contact-intensive services, and could speed up deglobalization and the remapping of supply chains for greater resilience against a range of potential shocks. Less offshoring could give domestic workers more bargaining power on wages, especially in places where the political pendulum is swinging toward addressing inequality. So-called superstar companies – many in the tech sector – could gain greater ability to pass on higher production costs to customers, having achieved dominant market shares.

https://www.blackrock.com/us/individual/insights


3. 69% FEWER S&P 500 COMPANIES ISSUING NEGATIVE EPS GUIDANCE FOR Q3 THAN AVERAGE

By John Butters  |  September 25, 2020  FACT SET

For the second quarter, 53 S&P 500 companies issued quarterly EPS guidance, which was the lowest number of S&P 500 companies issuing EPS guidance for a quarter since FactSet began tracking this metric in 2006. Are fewer S&P 500 companies issuing EPS guidance for the third quarter as well?

The answer is yes. To date, 67 S&P 500 companies have issued EPS guidance for Q3 2020, which is 36% below the five-year average of 104. If 67 is the final number for the quarter, it will mark the second lowest number of S&P 500 companies issuing EPS guidance for a quarter over the past 10 years (Q4 2009), trailing only the record-low number of 53 in the previous quarter. However, it will mark a 26% increase over the previous quarter as well.

No. of S&P 500 Cos Issuing Quarterly EPS Guidance 5-year

The low number of S&P 500 companies issuing EPS guidance for the third quarter is due to a substantial decrease in the number of S&P 500 companies issuing negative EPS guidance for the quarter. Of the 67 companies that have issued EPS guidance for Q3 2020, only 22 have issued negative EPS guidance. This number is 69% below the five-year average of 70.5. In fact, if 22 is the final number for the quarter, it will mark the lowest number of S&P 500 companies issuing negative EPS guidance for a quarter since FactSet began tracking this metric in 2006. The current record is 28, which occurred in the previous quarter. At the sector level, eight of the 11 sectors have seen fewer companies issue negative EPS guidance for Q3 2020 relative to their five-year averages (rounded to the nearest whole number), led by the Consumer Discretionary (1.0 vs. 15.5) and Health Care (1.0 vs. 11.2) sectors.

https://www.factset.com/?utm_feeditemid=,utm_device=c,utm_term=%2Bfactset,utm_source=google,utm_medium=ppc,utm_campaign={utmcampaign},hsa_cam=8835391608,hsa_grp=91984082834,hsa_mt=b,hsa_src=g,hsa_ad=412551945106,hsa_acc={9972562989},hsa_net=adwords,hsa_kw=%

4. Energy Consistent Worst Sector Performer for 5 Years.

Low Energy” Energy-Bespoke Investment Group

US stocks are looking to close out the week on a positive note with the S&P 500 up over 1%.  One sector that hasn’t been participating in the rally, however, is Energy.  While it just moved back into positive territory for the day, the sector remains at the back of the pack in terms of sector performance.  If these levels hold for the remainder of the trading day, it will be the69th time in the last 200 trading days that Energy has been the worst-performing sector. That works out to more than once every three trading days.  Talk about a sector that’s in liquidation mode!

The chart below shows the rolling 200-day total number of days that Energy has been the worst-performing sector in the S&P 500.  While the current level of 69 is extremely high, earlier this month the rolling 200-day total was even higher at 71.  Over this same period of time, no other sector has even seen close to as many days of ranking at the bottom as Energy.  The next closest is Utilities as it has been at the bottom of the pack in terms of performance on 36 of the last 200 trading days.  It hasn’t just been the last 200 trading days that have been rough for the Energy sector.  Over the last five years, the sector has been the worst-performing sector on just over 23% of all trading days.  Is this what it felt like for the horse and buggy companies in the early 1900s or the ice-harvesting companies after the invention of electric refrigeration?  

https://www.bespokepremium.com/interactive/posts/think-big-blog/low-energy-energy

5. S&P 500 Cash +35% Year to Date.

From Barry Ritholtz The Big Picture Blog

6. IPO Boom—80% of Money Raised=Healthcare, Technology or SPACS

WSJ-By Corrie Driebusch

This year, more than 80% of the money raised by initial public offerings falls into three buckets: healthcare, technology and newly popular blank-check companies—shell firms whose only purpose is to acquire a private target and take it public. That is the most concentrated the IPO market has been since 2007, according to Dealogic, when new listings of banks and lending institutions flooded the market before the financial crisis.

More than 235 companies have joined the U.S. public markets this year, on track for the most since 439 companies went public in 2000, according to Dealogic. They’ll soon be joined by giants Airbnb Inc. and Palantir Technologies Inc., which will go public later this year after long tours as private companies.

IPO Market Parties Like It’s 1999

Even in the midst of a recession, investors are pouring money into newly public companies at levels on par with the dot-com era

https://www.wsj.com/articles/ipo-market-parties-like-its-1999-11601052419?mod=itp_wsj&ru=yahoo

7. Dollar Rally This Week…Shorts Kept Selling Into Rally?

@MacroCharts

Dollar Positioning (updated). Despite the Dollar’s sharp rally this week, Futures traders SOLD another $2.5 Billion – now the biggest Short Dollar position in 9 years. If this USD rally continues, a lot of traders look headed for an expensive lesson in risk management.

9:00 AM · Sep 26, 2020·TweetDeck

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8. Who Has The Power Over Federal Law Enforcement?

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9. Institutional Money Pours Into Suburban Subdivisions

Wall Street’s New Suburban Subdivision Is Full of Renters-Bloomberg

Patrick Clarkand Noah Buhayar

Institutional money is pouring into single-family rentals

Demand for housing, affordability issues fuel industry

Wall Street won big buying up homes during the foreclosure crisis and renting them out. Now, it’s headed back to the suburbs in hopes of scoring again.

With the pandemic driving demand for larger living spaces, institutional investors are pouring money into single-family rentals. In addition to buying houses on the open market, they’re bankrolling subdivisions — inventing a new kind of suburban living that’s easier to afford, but where the financial benefits of homeownership go to Wall Street firms.

Blackstone Group Inc.Brookfield Asset Management Inc. and JPMorgan Chase & Co.’s asset-management arm have each made fresh bets on the industry since Covid-19 cases started surging, targeting a type of property big investors ignored until 10 years ago.

The investments come as publicly traded single-family landlords outperformed apartment owners, and social-distancing efforts make traditional commercial real estate, including hotels and retail properties, less appealing.

“It’s been a combination of the sector coming of age as well as the performance during the pandemic,” said Dana Hamilton, head of real estate at Pretium, whose Progress Residential manages roughly 40,000 rental homes. “Single-family rentals have been an island of strength during the storm.”

Same Homes

For decades, Americans have flocked to the suburbs in search of more space, better schools and a respite from the grind of city life. Those qualities have become more relevant in the era of Covid-19 and unrest in U.S. cities that has President Donald Trump promising to defend the suburban lifestyle.

Read more: Air Conditioners Break Faster in Work-at-Home Era

Whether landlords are shopping for existing homes or building them from the ground up, they want the same things that families have always favored. That means spare bedrooms, big garages and good neighborhoods.

Still, the new wave of investment shows how the single-family rental industry could change the U.S. housing market, providing affordable homes whose residents don’t benefit as values rise.

“It’s not a replacement if you’re trying to build wealth, but it gives you more options if you’re trying to figure out where to live, or you’re trying to build credit,” said Cheryl Young, an economist at Zillow.

On a September morning, several work crews were busy at one of American Homes 4 Rent’s new communities in Lake Stevens, Washington, about 35 miles (56 kilometers) northeast of Seattle. Rent is about $2,700 a month for a four-bedroom home with a fenced-in backyard in the 27-house development, which snakes down a street that ends in a roundabout backing up to a wooded area and an elementary school.

There’s little to distinguish the neighborhood from several others nearby developed by traditional homebuilders, and tenants are moving in just about as fast as the houses can be finished.

Rising Prices

American Homes, founded in 2012 by the self-storage billionaire B. Wayne Hughes, spent its early years building property-management systems to operate homes acquired in the aftermath of the foreclosure crisis.

After rising home prices made it harder for the company to score bargains, it decided to start building rental houses for itself. These days, it’s opening new communities at a pace of roughly one per week, chief executive officer David Singelyn said in an interview. The company’s share have gained 51% since the market hit a bottom on March 23.

Christopher Bernard, 34, signed a lease on a new American Homes property in Eagle Mountain, Utah, about 40 miles south of Salt Lake City, after he and his wife couldn’t close on a newly built home in the area. The rental house has nicer finishes, and costs less per month than what they would have paid on a mortgage.

“Someone who owns their house isn’t any different from someone who’s renting,” said Bernard, who teaches at a nearby university. “I’m proud because I can let my child run around on the lawn.”

Read more: Invitation Homes Eyes Next 80,000 Houses as Suburbs Boom

American Homes, which raised $625 million through a joint-venture with JPMorgan’s asset-management arm, isn’t the only company betting on purpose-built rentals. Amherst Group, another early industry player, hired a former construction executive as chief operating officer this summer with an eye to buying land and building its own homes. A former Colony Capital Inc. executive is raising $1.2 billion in equity and debt to build 5,000 rental homes.

Read more: Ex-Colony Executive Seeks $1.2 Billion for Single-Family Rentals

It won’t be easy for institutional landlords to remake the suburbs. Competition for construction workers, building materials and land could hold back rental developers, while low mortgage rates are helping boost home prices, making it harder to buy properties to convert for tenants.

Popular Bet

Mom-and-pop landlords still own the vast majority of single-family rentals, with large investors controlling roughly 2% of all rental homes, according to John Burns Real Estate Consulting.

Still, the industry has become a popular way for Wall Street to capitalize on the surging demand for housing, particularly as millennials look for more space and struggle to find homes they can afford to buy.

“If you take a step back, there’s not enough homes, and not enough affordable housing,” said Drew Flahive, who leads Amherst’s single-family rental business. “Our main focus with this business is creating supply that’s in such high demand.”

(Updates with American Homes 4 Rent share gain.)

https://www.bloomberg.com/news/articles/2020-09-23/wall-street-s-reimagined-suburban-subdivision-is-full-of-renters?sref=GGda9y2L

10. Take a Break Today, or You’ll Break Apart

Ryan Holiday

Author of The Obstacle is The Way — Portfolio/Penguin Random House

16 articles Following

Some people aren’t strict enough with themselves. But some of us are too strict. 

The work from home situation in the pandemic has highlighted this difference in many of us. While many folks have struggled to get by financially, those lucky enough to keep working seem to fall into two camps. Some are spending all day in their pajamas, others are working longer hours than before. We feel obligated to answer every email, to accept every phone call, to show up for every Zoom call. Plus untold additional family and personal obligations.

No wonder that, according to a recent study done by EPIC Provisions, 60-70% of work from homers are feeling burned out. As it happens, this is an issue that dates way way back. 

Musonius Rufus, like a lot of the Stoics, was a strict man. He was strict with himself. He was strict with his students. He believed in hard work, he did not ease up, just because other people did or because he had been successful.

A friend would describe one evening, when in Athens, when they were enjoying the Saturnalia—quite pleasantly, in fact: “We did not, however, let our minds go lax,” he wrote, “for, Musonius says, ‘to let one’s mind go lax is, in effect, to lose it.’”

Unfortunately, this is a common belief, not just among the Stoics. People think they are too important, the stakes of their work are too high, that there is not a minute to lose. So they never relax. They never shut off their minds. They never check out, or let go. And far too often they end up losing it. 

EPIC’s survey found that those who are feeling burnout associate it with feeling the need to respond immediately, be on all the time and stuck to their computer. Taking a mental break and eating healthy snacks helps both personally and professionally. 

I certainly relate to that. 

“The mind must be given relaxation,” Seneca said, “it will rise improved and sharper after a good break. Just as rich fields must not be forced…so constant work on the anvil will fracture the force of the mind.”

All muscles need rest. The brain is no exception. Fields must be alternated. Computers must occasionally be shut down or rebooted. To not do this is to risk injury, poor yields, or damage. We are not in this life for the short term. We are trying to build sustainable, enduring success.

I’ve been excited the last week to work with EPIC on a campaign to encourage people to take more breaks. It’s important stuff. If you don’t take a break…you might end up being the one breaking.

Me? I like to get up early, tackle my important projects and then around 10 or 11, I get up from my desk and take a break. It’s too early for lunch and too late for breakfast, so I’ll grab a snack. I’ll read a book. Or go for a walk or call a friend. Sometimes I just stare out the window. I do the same in the afternoon, usually in the pool with my kids. But the point is: I let the mind go lax. 

On purpose. So I don’t lose it. 

Do yourself a favor and give yourself permission to do the same. 

#TakeAnEPICBreak this week! so you can continue to be your best self. 

#sponsored

https://www.linkedin.com/pulse/take-break-today-youll-apart-ryan-holiday/?trackingId=u%2FSFwjaSvRqE%2BGVCgCdRSg%3D%3D

Disclosure

Lansing Street Advisors is a registered investment adviser with the State of Pennsylvania..
To the extent that content includes references to securities, those references do not constitute an offer or solicitation to buy, sell or hold such security as information is provided for educational purposes only. Articles should not be considered investment advice and the information contain within should not be relied upon in assessing whether or not to invest in any securities or asset classes mentioned. Articles have been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Securities discussed may not be suitable for all investors. Please keep in mind that a company’s past financial performance, including the performance of its share price, does not guarantee future results.
Material compiled by Lansing Street Advisors is based on publicly available data at the time of compilation. Lansing Street Advisors makes no warranties or representation of any kind relating to the accuracy, completeness or timeliness of the data and shall not have liability for any damages of any kind relating to the use such data.
Material for market review represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results.
Indices that may be included herein are unmanaged indices and one cannot directly invest in an index. Index returns do not reflect the impact of any management fees, transaction costs or expenses. The index information included herein is for illustrative purposes only.

Topley’s Top 10 – September 25, 2020

1. Insider Selling Fastest Pace Since 2012

INSIDERS SELL– S&P 500 execs sold shares of their own firms at a rapid pace in the last month. The selling picked up so much versus buying that a measure of insider velocity tracked by Sundial Capital showed the fastest exit since 2012. About $975 million of stock was dumped last week, more than twice the prior week, SEC data compiled by Bloomberg show.  Their purchases increased by roughly 10% to $11 million.

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Topley’s Top 10 – September 24, 2020

1. Small Caps Lag In 4th Quarter

Now is not a good time to be actively investing in small-cap U.S. stocks. That’s because small-caps typically lag their larger counterparts during the fourth quarter. 

Take a look at the accompanying chart, which plots the average monthly return advantage that the smallest stocks have over the largest. (The exact definitions of these two hypothetical portfolios are provided on the website maintained by Dartmouth College professor Ken French.)

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