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The French Connection

11/14/2018

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Synopsis: “The Constitution only guarantees the American
people the right to pursue happiness. You have to catch it yourself.” 
― Benjamin Franklin


The agent approached carefully, warily, for no other reason than proper tradecraft.
 
“Excuse me monsieur, a moment please?” The Frenchman hollered over the din of the port come to life. He had to chuckle a bit as his American assignment stepped off the fast sailing ship, a sloop named Reprisal, in the port town of Auray.
 
“Monsieur, this way.” He waived, and his target came closer. It was a universal truth of intelligence operations, nothing stayed secret forever. So, how could you keep secret the identity of the most interesting man in the world? But the older man had certainly tried, dressing up as backwoods simpleton complete with a beaver fur hat. An inventor, scientist and writer, certainly. A genius and political theorist, perhaps. An agent provocateur? No, certainly not.
 
“I am sorry monsieur, but your ruse is up. You can take off that silly hat and disguise.”
 
The man looked over the top of his spectacles and arched an eyebrow. “Disguise?” he grumbled.
 
“Of course. You may fool the English into thinking you are a rube and a nobody. But the French know better.”
 
“I see, and what do you know of the English?”
 
“The English know you are siding with the rebellion. They probably know you are here.” He presented a copy of the St. James Chronicle of London dated November 14, 1776. Indeed, it indicated that he, Benjamin Franklin, was siding openly with the revolution in the North American Colonies.  “But my dear Mr. Franklin, lucky for us, they did not capture you on your treacherous journey across the Atlantic. Soon we will discover what brought you here. For now, welcome to France.”
 
Franklin’s young entourage, his grandsons, came ambling up as the French agent shook hands with the American envoy.
 
“Boys, take my hat and store it carefully. It is, after all, my favorite one.” Franklin smiled at his escort. “Not only am I siding with the Patriots my dear sir, I am here to represent them and formally request that I be taken to Paris to discuss terms of friendship. And perhaps to go shopping.”
 
Over the coming months, in parlors of elegant mansions along the Tuileries Gardens, the upper-class citizens of Paris wore the finest fashions and held elaborate parties. Franklin ambled onto the stage with a furry hat, no powdered wig, and a few simple suits. He never did update his wardrobe. Instead, he discussed science and politics, demonstrated wit and wisdom, and charmed the Parisians as no other American had before or, perhaps, since. The French grew to adore him and threw their own wigs into the ring against Britain the following year, turning the tide toward Independence. In 1790, when Franklin passed away at the age of eighty-four, his death sparked the largest funeral ever seen in Philadelphia with some twenty thousand attendees. Not to be outdone, the French National Assembly proclaimed three national days of mourning.
 
                                                        *****
 
Writer, scientist, printer, humorist, rake, statesman, inventor, political theorist; Benjamin Franklin was a man whose diverse talents were as immense as the country he helped establish. In 2018, some investors began to revolt against the idea of diversification as only US stocks handily beat their foreign counterparts and even bonds through the first few quarters. Days of mourning ensued for the death of diversification. But Ben’s likeness is on the one-hundred-dollar bill for a reason. Here are the lessons investors should have learned from the famous Mr. Franklin, in his own words: 
 
  • “He that can have patience can have what he will.” Don’t make long-term decisions based on short-term trends. Ever.
  • “A Penny Saved is a Penny Earned.” Vanguard research notes that a diversified portfolio invested inexpensively in broad-market index funds “gives an investor exposure to more than 9,000 individual stocks and almost 12,000 individual bonds—representing more than 99% and 83% of market-cap coverage for stocks and bonds, respectively.” For your core portfolio, you can do a lot with a little.
  • “Many people die at twenty-five and aren't buried until they are seventy-five.” Because of what cognitive psychologists call myopic loss aversion, hating our losses much more than we like our gains, normal volatility makes some investors miserable. Don’t ignore the progress of recent years because of the setbacks in the last few months. If necessary, turn off the television and hit the library.
  • “Never confuse Motion with Action.” Sure, 2018 has so far been a year that disappointed many investors. But moving things around just for the sake of doing something probably won’t help much.  While diversification does not ensure profit or protect against loss in a declining market, it can lower the amount of day-to-day volatility. It may make the overall journey seem less treacherous.
  • “By failing to prepare, you are preparing to fail.”  Franklin ‘retired’ at the age of forty-two because he had discipline, dedication, diversification…and a plan. 

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Photo: Bing.com, Free to share and use
Links & Sources:
  1. http://www.publicbookshelf.com/public_html/The_Great_Republic_By_the_Master_Historians_Vol_II/benjaminf_hc.html
  2. http://www.publicbookshelf.com/public_html/The_Great_Republic_By_the_Master_Historians_Vol_II/benjaminf_hc.html
  3. https://www.goodreads.com/author/quotes/289513.Benjamin_Franklin
  4. https://advisors.vanguard.com/VGApp/iip/site/advisor/researchcommentary?page=AdvisorAlpha
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Patrick Huey is the author of two books:  "History Lessons for the Modern Investor" and "the Seven Pillars of (Financial) Wisdom"; this is considered an outside business activity for Patrick Huey and is separate and apart from his activities as an investment advisor representative with Dynamic Wealth Advisors.  The material contained in these books are the current opinions of the author, Patrick Huey but not necessarily those of Dynamic Wealth Advisors.   The opinions expressed in these books are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. They are intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed in these books is no guarantee of future results.  As always please remember investing involves risk and possible loss of principal capital. 
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