Memorial Day- Freedom Is Not Free

This article originally appeared May 29, 2010.


Residents in Southwest Florida hold a Memorial Day ceremony.

Ever wonder why veterans sell poppies for donations so close to Memorial Day? It is because of a popular poem entitled, "In Flanders Fields" written by a Canadian physician and Lieutenant Colonel John McCrae in May, 1915. McCrae was a surgeon in charge of a field hospital during the second battle of Ypres during World War I. McCrae wrote the poem after his friend, and former student, Lieutenant Alexis Helmer, age 22, was killed in battle. He noticed the poppies flourished over the disturbed earth of the battlefield days later. The term "Flanders fields" is a geographic region which includes parts of Belgium, France, and the Netherlands. McCrae wrote:
"In Flanders fields the poppies grow
Between the crosses, row on row,
That mark our place; and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.

We are the Dead. Short days ago
We lived, felt dawn, saw sunset glow,
Loved, and were loved, and now we lie
In Flanders fields.

Take up our quarrel with the foe:
To you from failing hands we throw
The torch; be yours to hold it high.
If ye break faith with us who die
We shall not sleep, though poppies grow
In Flanders fields."

-Lt.Col. John McCrae, MD, 1915


Formerly known as Decoration Day, this Federal Holiday is a time of remembering those men and women who died in military service. The name was officially changed to Memorial Day in 1967, and is celebrated on the last Monday in May. One of the longest standing traditions with Memorial Day is the running of the Indianapolis 500 which began in 1911. Many visit cemetaries and memorials. Flags are placed on the gravesites of veterans. Parades held. A moment of silence takes place at 3PM local time. Many people recognize Memorial Day as the unofficial beginning of summer.

Please take a few moments this Memorial Day weekend to remember those who have fallen for our country. They paid the ultimate price for the freedom which you and I enjoy. God Bless America!

As Good As It Gets... Really?

Once again we have seen another record breaking week on Wall Street. The market has seemingly shrugged off the continued systemic, economic, political and military concerns which have not been resolved around the world. Interest rates remain at historic lows. Unemployment levels seem to be holding around 6 to 7%. Perhaps the U.S. markets are still the best place to invest. Perhaps a case can be made for the continued upside in the market. But, as Paul Harvey used to say, lets look at "the rest of the story."


Chart courtesy of www.chartoftheday.com

The above chart shows Standard & Poor earnings growth peaked several quarters ago. At that time earnings growth surpassed their highest recorded level since 2009, immediately before the Financial Crisis. Earnings growth has been declining since then. Can the market continue its parabolic rise at a time when earnings growth has been declining? Many so-called gurus think so. Or are portfolio managers trying to get into the market so they are not left behind?


Chart courtesy of www.realtimestockquote.com

The weekly ten year Dow chart seems to show there is still some upside potential. However, any further increase will create a steeper "rising wedge" formation which is a bearish sign. Some profit taking may actually be prudent at this time.

These are just a few points to keep in mind. There are definitely still opportunities to invest in this market. A well diversified portfolio remains the key to long term growth and wealth accumulation. And its not about how much you make in the market-- its about how much you keep.

Note: The above is for educational purposes only. You should speak with your own personal financial advisor regarding any decision to buy, sell, or hold specific assets in your portfolio.