The Truth About Stress 

Stress is bad for you. It wears you down. Makes you irritable. Clouds your brain. And over the long run, it shortens your life.

 I knew that.

Until I read a review of The Upside of Stress by Kelly McGonigal.

McGonigal argues that stress, in itself, is not necessarily bad for you. What matters is how you think about it.

In one test cited, researchers asked 30,000 adults how much stress they felt in the past year – and whether or not they thought stress was a negative. Eight years later, the researchers checked in on them. And sure enough, most of the high-stress people had experienced both physical and mental health problems.

But not all of them. Those respondents that reported high levels of stress but did not view their stress as harmful did not suffer. And they had lower rates of death. Even lower than respondents that initially reported experiencing very little stress.

The bottom line, per McGonigal: The effect of stress on health is relative. If you view it as harmful, it will be harmful. If you view it positively, it can improve your health and increase your longevity.

The secret for making stress work for you, McGonigal says, is to understand what stress is biologically, and how to think about it when you have it.

“Stress arises, she says, when something you care about it at stake.” (We don’t stress about things we don’t perceive as important.)

Stress produces definite physical responses, such as a faster heartbeat, hypersensitivity, and the production of adrenaline and cortisol. And they arise unconsciously and instinctively.

You shouldn’t try to stop them, McGonigal says. They are normal. In fact, they are healthy. Studies show that these responses, and particularly the secretion of adrenaline and cortisol, allow for better performance under pressure.

Rather than trying to resist or deny your stress responses, do this:

  1. Notice them. Be aware of how they are affecting your body.
  2. Accept them for what they are: your body’s intelligent responses to a challenge you are facing concerning something you care about. Ask yourself, “What is at stake here and why do I care about it?”
  3. Rather than think of the source of the stress as a threat, try to think of it as something that can make you in some ways better.
  4. Consider the resources you have available to deal with that challenge and make a commitment to use them.
  5. Put the threat into perspective by recognizing the big picture.

And I would add this (from my own experience): Consider the worst-possible outcome of the challenge you are facing and imagine yourself being “okay” with it.

I’ve put this protocol into practice in preparing for a competition I’ve entered: the Pan American Jiu Jitsu tournament. I’m going to have at least two matches with high-level black belts that will be doing their best to beat the crap out of me – maybe break my arm or choke me into unconsciousness. To make matters worse, it’s a public event, which means that something more precious than my body will be at stake. My self-esteem!

I’ve been nervous about the competition since the day I decided to participate. I’m worried about making weight. I’m worried about getting injured. But most of all, I’m worried about losing and thereby disappointing my training partners and teachers, who are convinced I’m going to do well.

So, every time I feel anxious, I tell myself, “This is normal. It’s good. Your brain parts are helping you get ready.”

I’m getting ready by dieting, sprinting (for stamina), and with brutally tough training sessions with my instructors, who are much younger, stronger, faster, and more technical than I am. And this is helping. I’m getting in better shape and feeling more prepared, if not confident.

What I haven’t yet done is follow my own advice: I haven’t imagined myself losing and feeling okay about it afterwards. That, I’ll have to work on.

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UK Government Report: COVID Deaths Among the Vaccinated

This sounds wrong, but I have seen it published a few times without contradiction (so far). So, I’m giving it to you. The UK government released a report at the end of February that said that seven out of 10 deaths from COVID-19 during January in England were in people who were fully vaccinated. All told, there were 1,086,434 cases of COVID in vaccinated individuals, accounting for 73% of all cases that month.

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The Stock Market: What… 

Worried about your stock portfolio? Here are some facts from Mitch Zacks (by way of JS) that may ease your concerns:

* S&P 500 earnings have been going up while the index has been falling. That means the P/E ratio on the US stock market has moved lower. (That’s a good thing. It means stocks have gotten cheaper relative to corporate earnings.)

* Most analysts expect the US economy and US corporations to grow in 2022. At Zacks Investment Management, the expectation is 7%.

* And since corporate earnings and revenue track GDP growth, Zacks also expect corporations to have a good year.

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Frank Lloyd Wright’s Fallingwater

K and I visited Falling Waters about 10 years ago. It was a memorable day and a wonderful learning experience.

If you are a fan of Frank Lloyd Wright, you should check out Fallingwater. It represents a pivotal moment in his career – a masterpiece of organic architecture that thrust him back on the world stage after he’d largely been sidelined by The Great Depression.

The project was a commission from a prominent Pittsburgh family that asked Wright to design a weekend home for them near a waterfall in Pennsylvania’s lush Laurel Highlands.

Instead of designing a house that looked onto the falls, Wright built ithe falls into the house, mirroring the pattern of the surrounding rock ledges with cantilevered concrete “trays.”

Fallingwater became a museum in 1964 and has been a hit ever since. We saw it about a decade ago. Like many of Wright’s extant structures, the house has been getting continuous repairs to keep it standing. But even with that going on, it was a great afternoon to walk though it and admire his genius.

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Five Causes of The Great Depression

On Black Monday, Oct. 28, 1929, the Dow Jones dropped nearly 13% in one day. That started a period of catastrophic declines that destroyed almost half of the Dow’s value in a single month. By 1932, at the nadir of the financial crisis, the nation’s public companies had lost 89% of their value. And the US economy didn’t fully recover from the damage that had been done until after WWII.

Why did it happen? Experts point to these contributing factors:

  1. Credit-fueled Consumption: After WWI, consumers went on a spending spree, using credit to buy everything from radios and washing machines to real estate and cars.
  2. Financial Speculation: The economic boom of the 1920s bred a frenzy of get-rich-quick scams. But the riskiest gambling took place on Wall Street, with more and more investors buying stocks on margin.
  3. The Federal Reserve: To fuel recovery after WWI, the Fed had lowered interest rates. Spending increased… but so did uncontrolled borrowing and speculation. As a result, in 1929, the Fed slammed on the brakes, jacked up interest rates, and caused a (justified, in my view) panic. The high interest rates made it difficult for businesses to borrow the money they needed to survive, and many ended up closing their doors.
  4. The Gold Standard: In 1929, the United States – like many other countries at the time – was on the gold standard, a system that directly links the value of a country’s paper currency to the value of a fixed amount of gold. A slowing economy, combined with the stock market crash and subsequent wave of bank failures, had led to crippling levels of deflation. And being on the gold standard made it impossible for the Fed to increase the money supply to stimulate the economy.
  5. The Smoot-Hawley Act: Signed into law in 1930, the Act raised already-high US import duties by an average of 20%. It was intended to protect the interests of American farmers and other US businesses, but the move backfired when foreign countries retaliated with their own tariffs. International trade plummeted by 65%, with US exports falling from $7 billion in 1929 to $2.5 billion in 1932.
These are the “five” causes that, as I said, “experts” often cite. And for good reason. From a long-distance and retrospective viewpoint, they all played a role in the drama. But the last three “causes” weren’t really causes, but effects.
At bottom, there were really two causes of The Great Depression: irresponsible speculation and irresponsible debt. (I’ll explain more next week.)
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George Bernard Shaw wrote more than 60 plays, but he also wrote a lot of personal letters. I read once that he sent somewhere in the region of 250,000 letters and postcards during his lifetime, the majority in response to strangers seeking either advice, money, a photograph, an autograph, or Shaw’s presence at an event. Here are three of his replies:

Letter to the Philosophical Institution of Edinburgh, 1928 

“I am fully conscious of the honor done me by the Philosophical Institution of Edinburgh in asking me to lecture; but the condition that my subject should be non-controversial makes it impossible for me to accept the invitation. I never speak in public except on violently controversial subjects in a violently controversial way.”

Letter to the Hull Conference of Crematorium Authorities, 1926 

“A dinner! How horrible! I am to be made the pretext for killing all those wretched animals and birds and fish! Thank you for nothing. Blood sacrifices are not in my line.”

 Letter to the Southwick Cricket Club, 1938 

“Too old. Loathe cricket. No connection with Southwick; don’t even know where it is.”

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To grabble is to grasp or grope – probably from the same Old English/Germanic origin as grapple (wrestle). Example from “The Tall Men” by William Faulkner: “A fine loud grabble and snatch of AAA and WPA and a dozen other three-letter reasons for a man not to work.”

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A letter from a young, determined-to-become-wealthy, nephew: 

“I’ve been looking at a lot of art recently as I would like to expand on what I already have. I’ve found this piece and would like to know your opinion on it and if you think it would be a good investment. I have the link below and a picture of it in case the link doesn’t work.”

My response: 

Thanks for asking. No, I don’t think it’s a good investment.

As near as I can tell, this artist has no reputation in the world of “serious” art. He’s not collected by museums. Or institutions. Or wealthy people. He’s just an old fart like me trying to make money selling his art on Artsy.

If you absolutely love his work, buy the least expensive piece you can find (that you like). But expect the value of it to drop by 70% the moment you purchase it. I will explain more by sending you chapters of the book Im writing on this subject. Working title: The Art and Science of Investing in Art. Stay tuned!

– Your Uncle and Art Advisor

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Mazzy Star: A new discovery…

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