Finance/Children

Hi Taylor - The stock market has me so confused right now. One day it feels like the economy has Taylor recovered, then Kovar we’re in a freefall again. What’s your take on the drastic ups and downs? - Zeke

Hey Zeke - There are times in our lives when following the stock market too closely will only give us whiplash, and I think this is one of those times. The Dow can be a useful gauge for certain financial issues, but there are a few reasons you have to step away from the markets to get a clearer picture.

All sorts of people drive the market. Unfortunately, a lot of people make a lot of money based on short-term strategies. That’s why we’ll see the market go nuts in either direction when it seems like not much in the economy has changed. A bump in oil prices can cause a surge even as jobs data tells us the economy is still hurting. The jumpy stock prices have a clear connection to the fact that we don’t know how or when this pandemic will end. Some days investors feel better about the outlook, other days a spike in coronavirus cases might have stocks selling like hotcakes.

Unemployment is still high. Even as places reopen and some jobs data ticks up, we can’t lose sight of the jobs lost and the businesses operating at half capacity. There was a lot of talk about a V-shaped recovery, but as long as people are afraid of getting sick and companies aren’t fully staffed, it seems a little naive to be that optimistic. The Dow and the S&P will have good and bad days as we navigate this crisis, but we have to look past the trading days and study the actual economic data. When you do that, you see that we’re clearly not out of the woods and we can expect rocky financial times to continue.

Good investments await. Unlike with the housing crisis, our economy is on hold because all of our lives have come to a bizarre standstill. We aren’t watching a particular sector collapse, so the recovery should be a little cleaner (when it starts in earnest). This pandemic has brought a lot of things into focus for all of us, and we’ll see lasting changes as a result. If you think about the products and services that have been important to you over the last three months, that could definitely inform your investing strategy.

Don’t judge a book by its cover and don’t judge an economy by its market fluctuations. There are tough days ahead, but there’s no need to overreact and panic when your IRA takes a plunge. Stay safe out there!

Legal Disclaimer: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.

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Living with Children John Rosemond Copyright 2020, John K. Rosemond

John Q: Our son, Rosemond age 8, has been diagnosed with attention deficit disorder. His IQ is well above average but his actual performance in the classroom is problematic. He has difficulty paying attention and finishing his work. We got him a tutor – an older retired teacher – this year. He worked well with her, but that really didn’t solve the classroom problem. The tutor said he was easily bored with third-grade work and needed more of a challenge. She recommended moving him out of public school or even homeschooling. At home, he’s respectful and obedient. When we ask him to explain the problem to us, all we get is “I don’t know.” We don’t want to put him on the drug that’s been recommended, but we’ve been told it will correct his biochemical imbalance and help him concentrate. What should we do?

A: As a leading psychiatrist has admitted, the term “biochemical imbalance” is, in his very words, “nothing but a useful metaphor.” In other words, it has no basis in scientific fact.

To speak credibly about an imbalance in a system, one must first quantify the system’s state of balance. Concerning the brain’s chemistry, that has never been done; furthermore, it may be impossible to do. Is it not fascinating that mental health professionals frequently claim that certain children have brainbased biochemical imbalances, yet do so on the basis of no physical examinations whatsoever? No biopsies, blood sample analyses, MRIs, nothing. And yet they claim to know that these kids’ brain chemistry is out of whack. Nothing short of amazing or, more accurately, nothing short of hocus-pocus.

The drugs used to “treat” ADD/ ADHD are stimulants. They do not correct the fictional imbalance; rather, they create one. Furthermore, they have never reliably outperformed placebos in clinical trials but unlike placebos (e.g. sugar, bicarbonate of soda) they have verified side-effects like anxiety, depressed appetite, headaches, even psychotic reactions. Not that every child taking these medications experiences such side-effects, mind you, but the risk is significant.

As is the case with all other psychiatric diagnoses, no one has ever proven that someone “has” attention deficit disorder. One can “have” leukemia or some other verifiable physical disorder or disease; one cannot “have” what is nothing but a theoretical construct.

In the absence of scientific evidence that your son “has” a brain-based disorder that prevents him from paying attention and finishing schoolwork, I’d place my bets on the tutor’s explanation. She is an experienced professional educator. She has worked directly with your son. She knows him fairly well, much better, probably, than someone who’s only given him a battery of tests (that have their own problems, by the way).

The tutor says your son is bored, meaning he can do the work, but it’s not challenging enough for him. He’s a smart kid; he needs to be challenged. I’ve been witness to lots of kids diagnosed with ADD/ADHD miraculously cured of metaphorical hocus-pocus by simply being moved to different schools, the worst side effect of which is a period of adjustment.

Family psychologist John Rosemond: johnrosemond.com, p arentguru.com.

John Rosemond has worked with families, children, and parents since 1971 in the field of family psychology. In 1971, John earned his masters in psychology from Western Illinois University and was elected to the Phi Kappa Phi National Honor Society.