AskDong

A few years ago I switched most of my credit card usage to American Express Starwood Card.  Part of the promotion I had signed up for entailed me spending at least $15,000 in six months to be eligible for a 15,000 bonus points.   Last week, I received a very short letter saying that American Express had neglected crediting my account with the bonus points because I had met the spending the requirement.   I knew I had met the requirement, but had completely forgotten about the points.   I never noticed in the last 2 years that I had never actually gotten my Starwood points.

This week, my Starwood Preferred Guest account was credited with 15,000 Starwood points.   I now have a very hefty balance (a little less than 100k,  25k from the bonus sign up) as the credit card has been the primary way in which I’ve spent money over the last few years.   The balance is large enough that I’m ready to cash in my chips.

On Friday, Obama enacted a new tariff on Chinese made tires of up to 55%.  Obama had until this week to make a decision, but decided to act early.  This decision was a true test of Obama’s commitment to free trade.   Right now, I feel the same way as Greg Mankiw, disappointed.   I am a strong believer of Free Trade.  Protectionalism serves some people’s interests, but not everybody.

This is not to say there are not real problems with the U.S. economy and especially in the manufacturing sector, but restricting free trade is treating the symptoms rather than the causes.   The U.S. is like an unemployed teenager going crazy buying video games with his birthday money from his grandparents when he should be looking for a summer job.  Restricting free trade might stop him from buying video games, but it doesn’t help him get a job.

The more troubling aspect right now with regards with the tariffs is that China is looking to retaltiate with restrictions on Chicken and Auto Part imports.  If China were to retaliate, we would have few winners and plenty of losers.   A trade war is the last thing we need to see during what are still unertain economic times.

It seems like the only posts I seem to be making these are my investment updates.   While I’d like to say I’ve been extra busy, that’s not completely true.   My blog just has not been the top priority for me.   I’m actually thinking about restructuring it so that it’s more in tune with how I want to write.   I need to structure it in way that’s geared to fewer posts.

I haven’t decided anything, so I really should be talking about my investment update.  August was another solid month.

I’m nearly back to where I was before the stock market tumble that began with the fall of Lehman brothers.

That said, I’m still not complete believer of the stock market recovery.  Things are immeasurably better but there are still problems, and I believe the market has gotten ahead of itself.   Personally, I expect a pull back this fall as trader come back from vacation and people take profits.   In that light, I’ve begun to acquire some put options on the NASDAQ as hedge for my portfolio.   As long time readers will know, I owned puts in the past.  Some I still own, others I’ve sold and locked in profit.  Those put options served as a fantastic hedge, and my portfolio escaped the worst of the carnage.