Page 11 - Boca Exposure - June '21

Boca Exposure, Page 11
Reality Check √ – Healthy Answers On Living

And Loving Life: ‘When My Nap Became A Snap!’

By Dale Brown, B.S., and the importance of living a healthy lifestyle. Dale, waste of time and it’s better to fight the urge to sleep until
M.A., C.E.C. Dale is a a Bocaire resident, can be reached at dalebrown@ they go to bed. This may be the case for many people, but
motivational speaker lovingmondays.com. the truth is that napping is not only good for you, it increases
who has spent many Have you ever noticed how some people have the productivity, sharpens the senses and lifts the spirit.
years as a Certified Life ability to sleep anywhere, any time? There is a reason that children are sent to their rooms
Coach and has written Mother’s Day always brings me back to my childhood, to nap when they are tired and cranky. When they wake
numerous articles and and how my mother reacted to so many situations. When up, they are loaded with vim and vigor. This practice
e-books relating to self- I was growing up, I loved to nap. Fortunately, my Mum works equally as well for adults to relax and calm the
improvement and ways to not only allowed it but would never disturb me during my nerves. The pandemic provided the perfect scenario for
build a high-performance afternoon rest. Even when friends, aunts and uncles would taking an afternoon nap. With nowhere to go, no pressing
team. Her education and criticize her for giving into my “lazy” nature, she recognized work to be done, it was easy, “peasy” for me to curl up
years of experience in how beneficial a nap could be to rejuvenate your mind and for what became known as my “snap” (small 30-minute
physical fitness and training of elite athletes has enabled body. She would say, “There will come a day when a nap shut-eye).
her to sharpen her knowledge in many health-related will become a luxury, so enjoy it when you can!” “Does a nap in the afternoon make up for midnight
areas. The following is one in a series of columns devoted I get comments from people who tell me that if they nap, tossing and turning or lack of quality sleep?
to many topics that deal with the mind/body connection they have trouble sleeping at night. Others say napping is a The answer is yes! Napping is beneficial to someone
who does not get enough sleep at night. Studies showed
that sleep is indeed cumulative, meaning that if you have a
poor night’s sleep you can make it up by napping the next
day. Research supports the fact that an afternoon nap may
be perfectly compatible with a finely-tuned biological
clock. A natural sleep/wake cycle includes being awake
The Bull Is Back... Will Raymond James Financial Services, Inc. for about 16 hours and then asleep for eight.

Here’s the interesting part: The body’s clock is set with
It Keep Charging? Arthur Rottenstein two distinct dips in alertness within a 24-hour period –
one at 2 a.m. and another about 2 p.m., corresponding to
Registered Securities Principal
On August 18, 2020, the S&P 500 set a record high for the first time 561-241-6616 the midday dip. It’s not surprising that some countries
since COVID-19 ushered in a bear market on February 19. The cycle divide their sleep into two blocks. A siesta (or afternoon
from peak to peak was just 126 trading days, the fastest recovery in ArthurRottenstein@ break) is typical in many countries, allowing time to
the history of the index, erasing losses from an equally historic plunge RaymondJames.com
of almost 34% in February and March. 1 bocaratonfinancialplanner.com rest before returning to the work day. It is believed that
Based on the traditional definition of market cycles, the new record divided sleep may be even more recuperative than sleep
confirms that a bull market began on March 23 when the index closed
at its official low point. This also confirms that the February-March taken in a single block.
bear market was the shortest on record, lasting just 33 days. 2 How do you get the most out of your nap?
Although the strong comeback is good news for investors, there
is a striking disconnect between the buoyant market and an economy If you still have reservations about how to get into the
still struggling with high unemployment and a public health crisis. Joseph Carpenito groove when your eyelids droop, consider the following
The market is not the economy, but the economy certainly affects the
market. So it may seem puzzling that the market could reach a record Financial Advisor suggestions to get you going ... or should I say snoozing?
high not long after the largest quarterly decline in gross domestic When? After lunch is a good time, because it will not
product (GDP) in U.S. history. 3 561-241-6616
Joseph.Carpenito@ interfere with your circadian rhythms.
raymondjames.com. Caffeine? Not good. It may interfere with a person’s
301 Yamato Road, Suite 3160 ability to sleep.
Boca Raton, FL 33431 Time to eat, and what? One or two hours before nap
time, eat foods high in calcium and protein that promote
sleep.
Optimism vs. exuberance Where? Some place clean and peaceful … no phones,
Whereas GDP measures current economic activity, the stock market is forward looking. The rapid bounceback suggests that investors believe doorbells, etc.
the pandemic will be controlled in the not-too-distant future and that business activity will return to normal. Whether this optimism is warranted
remains to be seen. The current economic situation remains tenuous, but there are hopeful signs. Lighting? Wear eyeshades, or darken the room to
A vaccine could be available in early 2021, later than anticipated but offering light at the end of the tunnel. In the meantime, the virus stimulate melatonin, the sleep-inducing hormone.
4
continues to suppress business activity. The 10.2% July unemployment rate represented a big improvement over the previous three months, but
it was still higher than at any time during the Great Recession. Recent projections of corporate earnings suggest they will not contract as much as Temperature? Body temperature drops when you fall
5
expected, but they will still contract. GDP is projected to make up ground in the third and fourth quarters but remain negative for the year. 7 asleep, so make sure you have a coverlet handy.
6
The extreme of market optimism is irrational exuberance, and there may be some of that at work in the current situation. The proliferation of
low-cost trading apps has encouraged less-experienced investors to trade aggressively, which might be driving some of the market surge. 8 Nap length? Remember not to fall into a deep sleep.
Set your alarm for fewer than 40 minutes for a power nap
Economic stimulus
The single, most important factor behind the market recovery is the deep commitment from the Federal Reserve to provide unlimited support to be effective.
through low interest rates and bondbuying programs. For some investors, the fact that the economy is still struggling has a strangely positive effect Still feeling guilty about slinking off to your easy
in guaranteeing that the Fed will keep the money flowing. 9
Further support from the federal government is more uncertain, but the strong market suggests that investors may be counting on a second chair? Why not try one of the shorter options to fit your
stimulus package. 10 internal clock and daily schedule.
Nowhere else to go Nano-nap (10 to 20 seconds) … nodding off on
Low interest rates make it easier for businesses and individuals to borrow, but they have reduced bond yields to the point that many investors someone’s shoulder or closing your eyes during a boring
are willing to take on greater risk in equities in order to generate income. Money that might normally be invested in the bond market has poured
into stocks, driving prices higher. This situation has its own acronym: TINA, There Is No Alternative to Stocks. 11 movie or lecture.
Micro-nap (2 to 5 minutes) … effective for shedding
Big tech at the wheel
While the S&P 500 is generally considered representative of the U.S. stock market as a whole, the recovery has centered around technology that sleepy feeling.
companies, which have helped provide goods and services throughout the pandemic. The Big Six tech stocks — Apple, Facebook, Amazon, Netflix, Power nap (5 to 20 minutes) … increases alertness,
Microsoft, and Alphabet (Google’s parent) — were up collectively by more than 43% for the year through August 18. By contrast, the rest of the
companies in the S&P 500 were down collectively by about 4%. The Big Six tech companies now represent more than one-fourth of the total stamina, motor learning and performance.
market capitalization of the S&P 500 and thus have an outsized effect on index performance. 12 Snap (my favorite) (30 minutes) … improves
One question facing investors is whether to chase the winners or look to stocks and sectors that still lag their previous highs and may have
greater growth potential. Chasing performance is seldom a good idea, but there are solid reasons why certain stocks have been so successful in muscle memory and clears the brain of useless built-up
the current environment. information…helps long-term memory.
Are stocks overvalued? Heavy-duty nap (60 minutes) … sleep that is good
The most common measure of stock value is price/earnings (P/E) ratio, which represents the stock price divided by corporate earnings over the for repairing bones and muscles.
previous 12 months or by projected earnings over the next 12 months. The projected P/E ratio for the S&P 500 on August 18 was 22.6, the highest
since March 2000 at the peak of the dot-com bubble. Big tech stocks were even higher, trading at 26 times their projected earnings, and the Big The next time you find yourself nodding off after
Six were higher still at more than 40 times projected earnings. 13-14 lunch, or wish you had a place you could retreat for a
A different measure of stock value compares the total market capitalization of all U.S. stocks with GDP. By this measure, the market was 77.6%
overvalued on August 18, by far the highest valuation ever recorded. The previous highs were 49.3% in January 2018 and 49.0% in March 2000. warm, comfy place to nap, give yourself permission to
This extreme ratio illustrates the current disconnect between the stock market and GDP, but a significant GDP increase during the third quarter do it. Proudly announce that you will be taking a “snap”
could bring it down. 15
In considering these valuations, keep in mind that these are extraordinary times, and traditional expectations and measures of value may … you are neither lazy nor unproductive.
not tell the whole story. If nothing else, the extreme volatility and rapid market cycles of 2020 have illustrated the importance of maintaining a Some of the most notable figures in history are known
diversified all-weather portfolio and the danger of overreacting to market movements. While new records are exciting, they are only signposts
along the road to achieving your long-term goals. to have been nap-takers, such as Winston Churchill,
The return and principal value of stocks and bonds fluctuate with changes in market conditions. Shares, when sold, and bonds redeemed Napoleon Bonaparte, Albert Einstein, Leonardo Da Vinci
prior to maturity may be worth more or less than their original cost. Investments seeking to achieve higher yields also involve a higher degree
of risk. Diversification is a method used to help manage investment risk; it does not guarantee a profit or protect against investment loss. The and John F. Kennedy. I feel honored to take my place
performance of an unmanaged index such as the S&P 500 is not indicative of the performance of any specific investment. Individuals cannot invest among these famous people if only for one reason…to
directly in an index. Past performance is not a guarantee of future results. Actual results will vary.
take a snap!
1, 3, 6, 8, 11, 13) The Wall Street Journal, August 18, 2020 Sleep well.
2) CNBC, August 18, 2020
4, 9) The New York Times, August 18, 2020
5) U.S. Bureau of Labor Statistics, 2020
7) The Wall Street Journal Economic Forecasting Survey, August 2020
10) CNBC, August 14, 2020 First Quarter
12, 14) The Washington Post, August 20, 2020 Third Quarter
15) Forbes, August 18, 2020 June 2 June 17
Arthur Rottenstein is a Registered Securities Principal and Branch Manager with Raymond James Financial Services, Inc. in Boca
Raton and founder of Portfoliorepair.com. He has been managing the financial affairs of a number of select families in South Florida New Moon Full Moon
since 1982. Please feel free to call for an appointment at (561) 241-6616 or email him at arthur.rottenstein@raymondjames. June 10 June 24
com. Please feel free to visit his website at bocaratonfinancialplanner.com. Securities offered through Raymond James Financial
Services, Inc., member FINRA/SIPC. Investment Advisory services offered through Raymond James Financial Services Advisors, Inc.