My kids are getting older. In fact, not only are they both adults, but they're both married. Father's Day looks a little different than it used to.
As I look back, I realize that there was an investment I made that paid off in a big way, and I want to share it with you.
Like many parents, I wanted to teach my children that, to a large extent, they control what happens to them. One of the first ways I did that was to set up a "compensation system" for them to earn video games.
Some parents try to limit the amount of time their kids spend watching TV or playing video games. I tried something different. Instead, my kids earned their games by reading books. Here is a photo from way back then.
Paid With Play.
Here's how it worked. When they were younger, 10 books were enough to earn a small game. When they finished a book, it was their right, and my obligation, to take them to the bookstore for us to pick up the next book together. Likewise, when they finished the requisite number of books, it was their right, and my obligation, to take them to the computer store or game store for them to choose any game they wanted.
When they finished a hundred books, they got a bonus of earning the next game system. That meant if they had a Nintendo, they could now also get a PlayStation 3 or Xbox 360.
How Can You Encourage a Jump to the Next Level?
There came a point when I wanted one of my sons to start reading grown-up books. He was comfortable reading a certain type of book, and didn't want to read the kind of books that I read. So, I created a bonus system that counted a particular book as three books. I didn't force him; I just let the easier path to a reward "whisper" in his ear what to read. Once he finished that, he never went back to teen fiction.
It Is a Great Way to Learn About Your Kids.
I also used the bookstore visits to gauge how the boys were doing. For example, I might say, "I notice that you read five books in that series, maybe you'd like this book". Or, "That sure is a lot of science fiction; what was the last biography you read?" For the most part, though, I didn't care what they read. The key was to get them to want to choose certain books for their own reasons. Ultimately, their preference meant they were learning to love reading.
It Puts Them In Control of Their Destiny and Rewards.
My younger son likes competition. He also broke or misplaced many things. So, to earn back the Game Boy unit he lost, I challenged him to read five books in five days. These weren't easy books either. It was designed to stretch him, and also to teach him that he could read a book a night. The bet was that he either finished all the books in the allocated time, or none of them counted towards games or Game Boys. On the other hand, if he read a book a night for two weeks, not only would he get his Game Boy back, but the books would also count towards a game. It worked like a charm, and we were both happy.
So, Who Got the Better Bargain?
As they started to get into their teenage years, I needed to up the ante a little. So, 500 books meant they got a laptop of their choice. Both boys cashed in, and probably felt like they were taking advantage of their dad.
I got what I wanted, though; both my boys love reading, and know that they can accomplish anything they put their minds to … one step at a time.
Here is a recent picture of us. All of us love reading ... and none of us needs diapers.
Speaking of diapers, I've leveled up to become a grandfather. Watching my oldest become a father is the ultimate dividend.
I still remember my father joking with me to be careful of what I said about him, because I would have kids who would do the same to me.
Watching my granddaughter grow, explore, and enjoy the world is an incredible blessing.
Plus, I know Karma is a Bitch. ... wait till she starts using everything she's learned against him.
It is part of the cycle of life ... just like diapers.
Major Asset Class Performance Since 2020
Last week, we highlighted the growth of cryptocurrencies. This week, we're taking a look at the performance of various asset classes during the previous 5 years - including Bitcoin.
To start, let's get a sense of where things stand year-to-date.
This has been a "strange" year. As someone who follows Markets, I'm still surprised by how many times I'm tempted to say that.
In addition, I'm also surprised by how well global assets have fared year-to-date.
Here's a high-level overview.
via CapitalSpectator.
After a seemingly significant string of losses, U.S. stocks experienced a surprising rebound in May, marking their first monthly gain since January. This upturn propelled U.S. equities to the top of the performance leaderboard among major asset classes during the month. The rally was driven by broad strength across global markets, though some segments, particularly bonds in developed markets, faced declines.
Game theory suggests that the conflicting incentives between growth-focused and risk-averse investors create a dynamic equilibrium sustaining this paradox. However, this brings up an uncomfortable question for investors:
That is where a longer-term lens is particularly helpful, both for providing context and offering insights into portfolio mix and diversification strategies.
The infographic illustrates how major asset classes performed each year over five years, highlighting the impact of external shocks and policy changes. It emphasizes the importance of diversification by showing how different assets respond uniquely to economic shifts, enabling investors to identify risks and opportunities in recent market cycles.
via Visual Capitalist.
Bitcoin has performed better than I expected during the past five years, attracting both institutional and retail investors. Meanwhile, gold has seen renewed interest as falling interest rates and easing political uncertainty have led some investors to seek safer assets, reflecting a shift toward lower risk tolerance in segments of the market.
It's interesting to see the dichotomy between these two asset classes and their growth, despite their almost inverse profiles.
Meanwhile, 2025 has been a rocky year for many asset classes. If you like potentially meaningful (but likely meaningless) factoids, 2025 has seen the S&P 500's fifth-worst start to a year in history.
It will be interesting to see how the rest of this year plays out.
Posted at 04:28 PM in Business, Current Affairs, Ideas, Market Commentary, Trading, Trading Tools | Permalink | Comments (0)
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