Growing up, we never discussed the stock market. It just wasn’t part of my household, my neighborhood, or (to my recollection) the national zeitgeist.

My parents probably had some money tucked away in a mutual fund or two that were  recommended by my Uncle. The Sunday newspaper had a thick section filled with the weekly summary of stock and mutual fund trading values printed in impossibly small print. The subject was a foreign language, full of arcane symbols.

The only investments ever discussed were savings accounts and certificates of deposits. I would take my birthday money to the bank along with my savings passbook. The clerk would fill out the deposit slip and enter the deposit amount in the passbook, initialing the entry.

Growing up with inflation

The bank paid 5% on deposits. We never shopped around for a better rate, because it would have been too inconvenient to travel elsewhere to transact business.  During my high school years, inflation grew to 5%, then 7%, then 10%, finally reaching a peak of 13.5% in 1980.   As I recall, the bank continued to pay about 5% on my savings.   Even with my measly high school math I knew I was losing ground.  Inflation was the story of the day.  It dominated the nightly news.  President Ford encouraged the nation to “Whip Inflation Now,” with his big red WIN buttons.

I don’t mean to bore you with tales from this old geezer’s childhood.  I’m telling you this in case you are too young to have lived through inflationary times. Continue Reading »