The Wealth Feedback Loop

Engineers often utilize feedback loops when designing control systems.  A feedback loop is a control that integrates the system’s output back into an input stream to control future operations.  Here are some common examples of a feedback loop:

  • Your home’s thermostat: As the temperature drops below a set target, the thermostat provides input to the furnace to activate and warm your home.  When the temperature climbs above the desired setpoint, the thermostat signals your furnace to turn off.
  • A microphone sends an input signal into an amplifier/speaker and the speaker generates sound. If the microphone is held too close to the speaker, it captures the sound from the speaker and creates an unintended “circular” loop; this generates an unpleasant “squeal” we are all familiar with.
  • The NFL draft: Every year, teams with the worst record are provided the earlier opportunities to select the best players coming out of college. As these teams “rebuild” with more talented players, they should eventually improve their win-loss record and move down in the draft (in theory).

Continue reading

Moonwalking, No More? – September 2023 Commentary

On July 20, 1969, American astronaut Neil Armstrong became the first person to walk on the moon when he stepped out of Apollo 11 in an area called the ‘Sea of Tranquility’.  Scientists suggest that the force of gravity is 5 to 6 times weaker on the moon than here on earth.  Would that make you feel like you were almost floating as you walk or run?  By contrast, Bill recently enjoyed a bicycling trip in Nova Scotia, Canada.  He shared that on several days the force of gravity was very much on his mind as the route often felt like a never-ending climb.  More than half the group riders opted for e-bikes, or bikes that are assisted by an electronic motor.  When climbs occurred, those on e-bikes used “turbo-assist” to zoom by with ease.  This experience is a lot like investing – gradual ups, then downs; some rises were fast and steep followed by a fall.  [On a bike, the rise was work, and ride down was fun; in financial market, the rise is work and declines are frustrating.]   We generally don’t think about gravity; we take it for granted unless falling out of bed.  Nevertheless, it does act on everything, unlike being on the moon.

Continue reading

“Mission NOT Accomplished & Might Could” – August Commentary

Might Could

“Might could” is a southern way of saying “might.” It refers to a possible willingness or ability to do something. Grammatical “experts” claim you cannot link two verbs – “might” and “could” – next to each other unless one is a linking verb. “Might” is informal and used with less likely events (“May” is formal and used relating to actions more likely to happen). “Could” is used to express ability and often refers to past actions. How about a few more southern phrases…”I’m fixin’ to”; or “pitchin’ a fit”; “more than one way to skin a cat”; “you could drive a preacher to drink”; or “as all get out.” [Special thanks to our own Diane Carpenter, Client Concierge, for recently sharing about “might could”; that’s often how commentary titles arise!]

Continue reading