Federal Fiscal Deficit vs. National Debt

Democrats spend money when they don’t raise taxes; and, Republicans cut taxes when they don’t decrease spending. Tax and spending reforms are needed desperately.

“The government has basically three gigantic programs and it’s the US military, Social Security, and Medicare,” Marc Goldwein, a senior policy director at Committee for a Responsible Federal Budget (CRFB) said. As Nobel-Prize-winning economist Paul Krugman once wrote, the US government is “best thought of as a giant insurance company with an army,” and increasing interest payments.

If the government wants to get serious about its fiscal spending and reducing the national debt, all government spending would have to be reduced by 27% to get budgets balanced in the next decade — and, if tax increases, defense spending, Social Security, and Medicare are all off the table, 78% of federal spending would have to be cut, according to CRFB.

The federal deficit vs. Debt — they’re two separate concepts.

  • The deficit is the difference between the money that the government makes and the money it spends during a fiscal year. If the government spends more than it collects in revenues, then it’s running a deficit.
  • The federal debt is the running total of the accumulated deficits.

The combination of spending increases, tax cutsc, and increasing interest expenses on the debt inflates deficits. While the rise in spending tends to be bi-partisan, tax cuts tend to be enacted by Republicans.


Reference:

  1. https://news.yahoo.com/want-balance-budget-without-raising-100000676.html
  2. https://www.politifact.com/factchecks/2019/jul/29/tweets/republican-presidents-democrats-contribute-deficit/

Exercise as Medicine: Just Get Moving!

You can come up with a million reasons for not being physically active.

Roughly 3.2 million people die each year because of physical inactivity, according to WebMD. Regular exercise — aerobics, resistance, stretching and balance — especially among older adults, is critical to good health.

Healthspan is more important than lifespan. On average, people live up to 20% of our lives unhealthy. Institute for Public Health

But it’s important to know that stillness or lack of exercise is bad for your longevity and healthspan.  “Healthspan” can be defined as the period of one’s life that one is healthy, according to the Institute for Public Health. However, being “healthy” means being free from serious disease. A disease is considered to be serious if it is a leading cause of death.

Caring about extending the well period of one’s life should be intuitive – if one is past their healthspan, it means they are chronically sick, often with a degenerating condition. Therefore, most people would agree that staying within their healthspan is desirable.

To extend a person’s healthspan, first healthcare professionals must be able to measure it.  Once they can measure it, then they can improve it.

Unlike the average lifespan, which is now 79.3 years in the US, healthcare professionals don’t have a statistic to mark the end of the average healthspan. To address this, the World Health Organization (WHO) has developed an indicator, HALE – healthy life expectancy.

To improve healthspan, treatments are required, but treatments don’t necessarily mean drugs. First, there are many commonalities around lifestyle that could delay the onset of most, if not all, of the serious diseases. It might seem like common sense, but maintaining a healthy plant-based diet with regular exercise and without smoking and drinking alcohol and nurturing strong social relationships are the surest ways to promote one’s healthspan and limit the onset of most diseases.

Food, Exercise and Social Connections as Medicine to improve Healthspan.


Resistance:

  1. https://www.webmd.com/healthy-aging/ss/slideshow-truth-about-exercise-aging
  2. https://publichealth.wustl.edu/heatlhspan-is-more-important-than-lifespan-so-why-dont-more-people-know-about-it/
  3. http://apps.who.int/gho/data/view.main.HALEXREGv

Warren Buffett’s top 10 rules for success

Billionaire investor Warren Buffett, “Oracle of Omaha, has a set of rules, principles and philosophies when it comes to making a decision, investing, managing the business and also building success in life. And his success principles can be summarized with the top 10 rules below.

“Don’t be afraid to give up the good to go for the great.” – John D. Rockefeller.

  1. Find Your Passion. Almost every successful person agrees that finding and following your passion is something important if you want to produce an amazing result in life. There is no guarantee that you will be able to find your passion in your first job, but you have to keep digging until you find it. Steve Jobs once gave a commencement speech at Stanford University and said: “Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it.” The only way you can produce outstanding work is through passion. Without passion, you will do things with the half-hearted approach and there is no way you can become the best this way. Thus, find your passion, do what you love and you will be able to produce amazing success in life when you do.
  2. Hire Well. If you want to be a billionaire, there is no way you can go about it all by yourself, you need to have a great team. And to have a great team, you must learn to hire well. Always remember that you cannot succeed alone in this world. You need other people’s help to bring you the success you want. And your people will be your greatest assets. According to Buffett, he emphasizes on 3 qualities when he hires, and they are, integrity, intelligence, and energy. Buffett also said that out of those 3 qualities, integrity comes first. He also jokingly said that you do not want to hire someone who has no integrity but has a lot of intelligence and energy. Integrity comes first. Without integrity, other qualities do not matter much
  3. Don’t Care What Others Think. It is important not to care what others think. And this is extremely important because you do not want to take into consideration what other people have to say, because you will be influenced and will never be able to hold onto your investing principles. If you was to listen to what others said, he will become like most people, living an average life. When it comes to achieving the success you want and living your dreams, there will be people telling you that achieving what you want is impossible and simply suggest you get a real job. Never listen to the naysayer. You have to follow your heart and do what you think is right. Circle of Competence” is what he has used as a way to focus his investment on only operating in areas he knew best. The concept basically explains that every one of us has developed useful knowledge on certain areas, and what we need to do is to operate in these areas that we are good at. When you care too much about what others think and say about you, you will restrict your own freedom and it will prevent you from living your best life according to your own terms.
  4. Read, Read, Read – The more you read, the smarter you will get and the more knowledge you will gain. When you become more knowledgeable, you will be able to make a better decision that will lead you to the success you want. Highly successful people are great readers and you have to adopt the same habit. Commit to reading every single day. If you find that you are busy and do not have much time to read, start small and read for 15 minutes a day. If possible, go for more. Read at least an hour a day. You can wake up earlier and make time for reading or you can make good use of your commuting time for reading. You need to be a lifelong learner and when reality changes, you need to change and adjust you strategy.
  5. Have A Margin of Safety – The concept of “margin of safety” is easy to understand, and requires great discipline and patience.  Buffett uses the metaphor of driving across a bridge to explain this concept. When you build a bridge, you insist it can carry 30,000 pounds, but you only drive 10,000-pound trucks across it. You have a margin of safety of 20,000 pounds. And when it comes to investing, you will never buy a business worth $50 million for $60 million. You will buy the business worth $50 million at a price below that to ensure there is a margin of safety. This concept is essential in the principle of value investing. It helps investors make better and wiser decisions before jumping into buying a stock. When an opportunity is presented, evaluate using the margin of safety concept before you decide.
  6. Have A Competitive Advantage – Buffett said that capitalism is all about somebody coming in and trying to take the castle. And what you need for your castle is a moat to protect your castle from your enemies. In the business world, your business needs to have a durable competitive advantage to survive for the long term. Today, the competition is tough and people can copy exactly what you do and produce the same product and put you out of business. This is why having a competitive advantage to protect your business like a moat protecting a castle is important. Buffett said that he will invest in businesses that have a competitive advantage because he wants to make sure that the business will still be around after years down the road.
  7. Schedule Your Personality – Build your business around your personality. In order to succeed in what you do; you must find your pace and your sweet spot so that you will enjoy your work and perform at your best. Buffett loves reading and he chooses to read to improve his knowledge, and then he acts as the strategist and manages his business from backstage. He organizes his business according to his personality. If you love drinking a cup of coffee before you start your work, do it. Organize your workspace according to your own taste, that will make you more productive. The key is to play to your strength and personality so that you can become the best at what you do.
  8. Always Be Competing – Buffett believes that one of the most common business killers is complacency. When people fall into their comfort zone and fail to improve their competitiveness, their businesses will eventually fail or be taken over by the competitor. And to stay ahead of the game, you must always be competing. Every business has problems in every industry. The key to making a business thrive is its ability to compete and stand out from the rest. And this is why you invest in a business that continues to thrive because you are always competing. Therefore, never rest on your laurels, keep competing, keep improving and innovating in your business.
  9. Model Success – There is no way you can succeed alone in this world. If you want to achieve great success in life, you need others. and, you must model other successful people, or better yet, get yourself a mentor. Take a look in the sports industry, every outstanding and professional athlete has a coach. Tiger Woods has a coach. Michael Jordan has a coach. You need a coach to guide you on the journey to success. Your coach can also remind you of your goals and inspire you to do your best. In business, having a mentor is said to be one of the most important keys to success. Success leaves clues and what you need to do to produce a great result is to model the success of others. Learn and study from others, and then learn, grow and improve yourself to become better.
  10. Give Unconditional Love – Finally, the most powerful force in this world is unconditional love. And everyone who wants to achieve success in life gives unconditional love.
  11. Bonus: Power of Compounding – “The power of compounding your money inside a successful business for a long time is nearly unmatched in capitalism.”

The final rule for success by Warren Buffett has a lot to do with your personality and beliefs. Being a philanthropist, Buffett believes in helping society and giving back to the world. This could be the reason why he has been so successful. He is always looking to help and to give, rather than to take. When you operate in a giving and grateful mindset, you will put your customers first, and this is what makes a business enterprise thrive


Source:  https://www.thewisdompost.com/billionaires/warren-buffett/warren-buffetts-top-10-rules-success/1575

The Golden Rules to Building Wealth

Building Wealth, along with good health and emotional well-being, can be viewed as an important component for a happy life.

However, it is important to remember that wealth cannot by itself buy or guarantee happiness or love, but it can help us get peace of mind. It can offer us the freedom to do what we enjoy (which can lead to happiness), and let us take care of our physical, emotional and mental well-being.

Wealth means having enough personal capital to achieve financial freedom, to do what you want, when you want.

Here are three keys to successfully building wealth:

    • Wealth Building Mindset: Life is measured by the value we create for others –our family and friends, stakeholders, and society at large – and the useful things we do in life. For instance, Warren Buffett still makes a lot of personal wealth each year but donates 99 percent of it to the Bill and Melinda Gates Foundation. Wealth gives us the freedom to make the world (or even a tiny portion of it) better. It enables us to let our family members live a life of comfort. Yet, creating wealth is not an end in itself, but a means to an end, which is to make life better for ourselves and others and for making an impact in the world.
    • Continue to learn and grow (know your “circle of competence”): Just because you invested in the market doesn’t mean the market is obligated to generate wealth for you. It’s your duty to improve yourself continuously. The best ways to do this are to study the history of investing, to learn the strategies of successful investing and to sharpen your circle of competence. The market functions to an extent like Nature does – according to its own rules, regulations, laws and sentiment. It’s your duty to build the required skills to succeed in the market and build your “circle of competence,” a term coined by Warren Buffett. In his 1996 letter to shareholders, Buffett explained: “You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries, however, is vital.” A circle of competence is a subject area that matches our skill or expertise. To be successful, we must leverage it, which means we must focus on depth in specific areas that we understand well instead of superficial breadth. Understanding your circle of competence helps you avoid problems, learn from others, and make better decisions. That’s when the market yields to you and lets you generate wealth.
    • Mindset, Focus, Patience and Discipline are quintessential traits: The market is volatile and will always remain volatile. And, you won’t last in it ifii you cannot handle the market’s volatility and manage your emotions. Doing this means reining in knee-jerk reactions and instead, building long-term perspectives and sticking to them. This is why mindset, focus, patience and discipline are your best friends if you want to generate long-term wealth. You must become immune to impulsive emotions of fear and greed, learn to temper the craziness around you, and to focus on the long term. When you learn to rein impulsive emotions, you build: 1) The astuteness to identify valuable businesses worth investing in, 2) The discipline to buy them at attractive prices, and, 3) The wisdom to stay the course when the majority of the market changes direction impulsively.

It’s been the patient, disciplined and focused on the long term investors that has had the best success building wealth over the long term


References:

  1. https://www.smevalueadvisors.com/blog/index.php/wealth-creation/

10 Rules of Success According to Oprah

Oprah Winfrey is known as one of the most successful individuals globally and her estimated net worth is almost $3 billion! To her degree of success and power, it took a lot of perseverance and wisdom.

Here are the ten rules of success according to Oprah Winfrey.

  1. Rather than overwhelming yourself with the big picture, ask yourself what the next right move is. It’s easy to feel intimidated by everything on your plate, so instead of facing such an enormous proposition, take things one step at a time. Make the best next move you can, then make the next move, and then the next one, each time going as carefully and as thoughtfully as you can. Success isn’t one giant leap — it’s a series of baby steps. And, if you make one misstep, understand that your life and your career won’t be defined by that one mistake. You have more steps to take, and you’ll arrive at success eventually.
  2. When you see an opportunity, take it. Success has been a result of grace and blessings, but there’s also been opportunity. The key to being successful is to recognize when opportunity is in front of you and seize it.  “Luck is preparation meeting the moment of opportunity,”
  3. Forgive yourself for your past mistakes. You’re not the person you were five, ten, twenty, or more years ago. A lot of wisdom just comes with age, so don’t beat yourself up for youthful transgressions. You didn’t know any better — but you know better now! Look at those past mistakes as teachable opportunities, learn as much as you can from them, and then move forward.
  4. Never stop improving yourself. This means continually working on your personality, your skill set, and your network so that you are in the best possible position to make a difference. You always need to be improving if you want to get ahead. If people are saying that about you, take it as a compliment. You’re doing a lot, and others are noticing.
  5. Go as hard as you can. Recognize and take responsibility that you have control only over your own performance. You can’t control what others are doing. All you can do is the best you know how, all the time. It’s like a race: you just run hard until you read the finish line, and all you can do is make yourself run more quickly, not make your competition run more slowly. That’s what brings you success: building yourself up, not looking behind you to see where your competition is.
  6. Don’t just dream — believe. It’s OK to have big dreams for yourself; we all do. But if you’re going to be successful, you’ve got to do more than dream. You have to believe that the life you aspire to lead will one day be yours. Winfrey always knew that she would live a big, fulfilling life; she had that strong belief in what her future held. Do the same, and hold firmly to that belief, even in the most difficult of times, and you’re likely to get exactly where you want to be.
  7. Remember that people are more alike than they are different. We’re all seeking the same thing, We all want to reach our fullest potential. Sure, we all go about that in different ways, because we all have different skills and different passions, but at the end of the day, we all just want to be true to ourselves and be, the “truest expression” of ourselves.
  8. Find your purpose in life. If you’re going to be successful, you need to figure out why you’re here on Earth. Most entrepreneurs already feel like they know their purpose, but if you don’t, stop! Put everything on pause, take some time for genuine soul searching and self-reflection, and find your purpose. Find your why!
  9. Keep yourself grounded and centered. It’s easy to get lost in your work, and it’s easy to let your ego inflate, but if you keep your focus, stay compassionate, and always seek to understand and connect with others, you’ll improve your chances of success substantially.
  10. Try to remember that everything will be OK. If you’re aiming for big time success, you’ve got to be patient and take the long view. Yes, it’s natural to be a little scared, but never lose faith that everything will work out just fine.

Source:  https://moneyinc.com/10-rules-success-according-oprah-winfrey/

Benefits of Consuming Dark Chocolate and Cacao

Dark chocolate can lower stress, inflammation and improve memory

Consuming dark chocolate and/or cacao has several benefits to brain function, including reducing stress levels and inflammation, and improving mood, memory and immunity, according to two studies. The natural stuff in dark chocolate and cacao is chock-full of ingredients called flavanols, antioxidant compounds found in cocoa beans.

Researchers at Loma Linda University Adventist Health Sciences Center in Southern California studied how consumption of dark chocolate with a high concentration of cacao — at least 80 percent — has positive health benefits and effects.

Tests revealed that dark chocolate or cacao can stimulate the body to produce nitric oxide. Nitric oxide relaxes blood vessels to allow an increased flow of blood and oxygen to the heart, brain, and other organs of the body.

In the past, research has shown that cacao is a major source of flavonoids. Because they are extremely potent antioxidants and anti-inflammatory agents, flavonoids benefit brain and cardiovascular health, the researchers said.

“For years, we have looked at the influence of dark chocolate on neurological functions from the standpoint of sugar content — the more sugar, the happier we are,” Dr. Lee S. Berk, associate dean of research affairs at Loma Linda and principal investigator on both studies, said in a press release. “This is the first time that we have looked at the impact of large amounts of cacao in doses as small as a regular-sized chocolate bar in humans over short or long periods of time, and are encouraged by the findings.”

Tests have found that the equivalent of four cups of flavanol-rich cocoa dramatically increased blood flow to the arms and fingers of people after only four days. Such an increase can help people fighting diseases ranging from high blood pressure, hardening of arteries, and stroke to diabetes, vascular dementia, and preeclampsia, a serious condition that affects pregnant women.

 


References:

  1. https://www.upi.com/Health_News/2018/04/25/Studies-Dark-chocolate-can-lower-stress-and-inflammation-improve-memory/3201524661285/
  2. https://news.harvard.edu/gazette/story/2007/02/cocoa-shows-promise-as-next-wonder-drug/

Anti-Aging Laboratory Breakthroughs

In Boston labs, experiments have shown that aging is a reversible process, capable of being driven “forwards and backwards at will,” said anti-aging expert David Sinclair, a professor of genetics in the Blavatnik Institute at Harvard Medical School and codirector of the Paul F. Glenn Center for Biology of Aging Research.

“Our bodies hold a backup copy of our youth that can be triggered to regenerate”, said Sinclair, the senior author of a new paper showcasing the work of his lab and international scientists.

The combined experiments, published in the journal Cell, challenge the scientific belief aging is the result of genetic mutations that undermine our DNA, creating a junkyard of damaged cellular tissue that can lead to deterioration, disease and death.

“It’s not junk, it’s not damage that causes us to get old,” said Sinclair. “We believe it’s a loss of information — a loss in the cell’s ability to read its original DNA so it forgets how to function — in much the same way an old computer may develop corrupted software. I call it the information theory of aging.”

Epigenetic changes control aging

While DNA can be viewed as the body’s hardware, the epigenome is the software, writes CNN Health. Epigenes are proteins and chemicals that sit like freckles on each gene, waiting to tell the gene “what to do, where to do it, and when to do it,” according to the National Human Genome Research Institute.

The epigenome literally turns genes on and off. That process can be triggered by pollution, environmental toxins and human behaviors such as smoking, eating an inflammatory diet or suffering a chronic lack of sleep. And just like a computer, the cellular process becomes corrupted as more DNA is broken or damaged, Fr. Sinclair said.

“The cell panics, and proteins that normally would control the genes get distracted by having to go and repair the DNA,” he explained. “Then they don’t all find their way back to where they started, so over time it’s like a Ping-Pong match, where the balls end up all over the floor.”

In other words, the cellular pieces lose their way home, much like a person with Alzheimer’s.

“The astonishing finding is that there’s a backup copy of the software in the body that you can reset,” Sinclair said. “We’re showing why that software gets corrupted and how we can reboot the system by tapping into a reset switch that restores the cell’s ability to read the genome correctly again, as if it was young.”

It doesn’t matter if the body is 50 or 75, healthy or wracked with disease, Sinclair said. Once that process has been triggered, “the body will then remember how to regenerate and will be young again, even if you’re already old and have an illness. Now, what that software is, we don’t know yet. At this point, we just know that we can flip the switch.”

To prove the theory and with the help of other scientists, Sinclair and his Harvard team have been able to age tissues in the brain, eyes, muscle, skin and kidneys of mice.

To do this, Sinclair’s team developed ICE, short for inducible changes to the epigenome. Instead of altering the coding sections of the mice’s DNA that can trigger mutations, ICE alters the way DNA is folded. The temporary, fast-healing cuts made by ICE mimic the daily damage from chemicals, sunlight and the like that contribute to aging.

In his lab, Sinclair said his team has reset the cells in mice multiple times, showing that aging can be reversed more than once, and he is currently testing the genetic reset in primates. But decades could pass before any anti-aging clinical trials in humans begin, get analyzed and, if safe and successful, scaled to the mass needed for federal approval.

Here’s how to eat to live longer, new study says

But just as damaging factors can disrupt the epigenome, healthy behaviors can repair it, Sinclair said.

“We know this is probably true because people who have lived a healthy lifestyle have less biological age than those who have done the opposite,” he said.

His top tips? Focus on plants for food, eat less often, get sufficient sleep, lose your breath for 10 minutes three times a week by exercising to maintain your muscle mass, don’t sweat the small stuff and have a good social group.


References:

  1. https://edition.cnn.com/2023/01/12/health/reversing-aging-scn-wellness/index.html

Dietary Fat is Health Food

“Nothing beats the true healing power of food and food is the best medicine for chronic disease.  It works faster and better, and is cheaper than medication. And all the side effects are good ones.”  ~ Dr. Mark Hyman

Many Americans have long been told that consuming dietary fat makes them fat, contributes to heart disease, and generally erodes their health. Now a growing body of research debunks long held beliefs about dietary fat, revealing the immense health and weight-loss benefits of a high-fat diet rich in eggs, nuts, oils, avocados, and other delicious superfoods, explains Dr. Mark Hyman, M.D., author of “Eat Fat, Get Thin” and director of the Cleveland Clinic Center for Functional Medicine, and founder and director of The Ultra-Wellness Center.

We now know that refined sugars and ultra process carbs, not fat, are the true causes and villains of obesity and heart disease. Overconsumption of refined sugars and processes carbohydrates causes a spike in the body’s production of the hormone insulin, which increases the storage of fat, especially dangerous visceral fat, explains Dr. Hyman. Instead, consuming healthy fats and plant based food, which are packed with powerful antioxidants and photochemicals is what your body and mind need.

Fat is one of the body’s most basic building blocks. The average person is made up of between 15 and 30 percent fat!

Essentially, dietary fat does not cause a spike in insulin.  Unlike eating refined sugars and processed carbs, eating fat makes your body burn fat, rather than store fat. Fats like butter and coconut oil boost your body’s metabolism, suppress hunger, lower triglycerides, reduce fat storage, and even improve athletic performance.

By increasing dietary fat into your diet, and eliminating sugar and process carbs, studies demonstrate that you can lose more weight, improve your metabolic health, and begin to feel and look better.

“Dr. Mark Hyman has helped thousands of people lose weight and lead happier, more energetic lives,” writes Toby Cosgrove, CEO of Cleveland Clinic. “His powerful insights on the dynamics of dietary fat will change the way you think about everyday eating, and show you how easy it is to enjoy a healthier, more satisfying diet.”

In short, the right fats can improve your mood, skin, hair and nails, while protecting you against Type 2 diabetes, dementia, cancer and much more, according to Dr. Hyman. Among his favorite sources of fat include:

  • Avocados.
  • Nuts—walnuts, almonds, pecans, macadamia nuts, but not peanuts (one study showed a handful of nuts a day reduced death from all causes by 20 percent).
  • Seeds—pumpkin, sesame, chia, hemp.
  • Fatty fish, including sardines, mackerel, herring and wild salmon that are rich in omega-3 fats.
  • Extra virgin olive oil (a large study showed that those who consumed 1 liter a week reduced heart attacks by 30 percent).
  • Grass-fed or sustainably raised animal products.
  • Extra virgin coconut butter, which is a great plant-based source of saturated fat that has many benefits. It fuels your mitochondria, is anti-inflammatory and doesn’t cause problems with your cholesterol. In fact, it may help resolve them.

References:

  1. Dr. Mark Hyman, Eat Fat, Get Thin, Little, Brown and Company. February 23, 2016.
  2. https://www.ecowatch.com/dr-mark-hyman-10-reasons-why-you-should-eat-fat-to-get-thin-1882141535.html

Dark Chocolate (Cacao) and Stem Cell Regeneration

Dark chocolate (or cacao) is the number one longevity food on earth. 

According to researchers, “The raw cacao bean is one of nature’s most fantastic superfoods due to its mineral content and wide array of unique properties.” And according to Dr. Li, dark chocolate or cacao is one of the best foods for improving the stem cell response inside your body.

Dark chocolate, containing 70 to 80 percent cacao or higher or its more processed cousin cocoa, is rich in polyphenols, antioxidants that help protect from disease-causing free radicals. Cacao is also rich in magnesium, which helps our minds and bodies to relax.

Dr. Li specifically mentions drink two cups of dark, hot chocolate as the best way to get your daily dose of cacao, which can actually double the number of stem cells flowing in your bloodstream at any given time.

Dark chocolate containing 70 to 80 percent cacao or higher is packed with nutrients that can strengthen your body’s defense systems and positively affect your overall health.

Dark Chocolate is Heart Healthy

You may have heard this benefit before—and it continues to ring true through vast research today. Epidemiologists have long-established a connection between consuming foods with flavanols—a potent antioxidant found in dark chocolate—and a lower incidence of death from cardiovascular disease.

With the help of over 750 million stem cells, your body regenerates itself each and every day. Dark chocolate can mobilize your stem cells to carry out their job to the fullest. At the University of California, San Francisco, researchers found that participants who received a chocolate drink made with cocoa twice a day for thirty days had twice as many stem cells in their circulation as their control group.


References:

  1. https://www.vosgeschocolate.com/blogs/vosges-haut-chocolat-blog/guest-post-7-pleasantly-surprising-health-benefits-of-dark-chocolate
  2. https://althealthworks.com/holistic-doctor-shares-this-ancient-healing-food-helps-your-body-recruit-stem-cells-to-regenerate-itself-from-the-inside-out/

Small Cap Stocks Performance

Historically, small-cap stocks have been shown to outperform the rest of the market over the long term.  And, small-caps tend to underperform during bear markets but outperform in bull markets.

Some of the best stocks to buy in the past 25 years started as small-cap stocks. Amazon was a $7 stock in 1998, and Tesla had a market valuation of just over $1 billion in 2010. Of course, not every small-cap company becomes a giant. Investing in small companies can be rewarding, but it also comes with risks that investors need to understand.

Over the long-term, small caps tend to outperform because of greater growth opportunities. A massive company is limited by its existing size. It’d be exceptionally difficult for, say, Apple Inc. to triple its revenues and free cash flow anytime soon.

However, a $1 billion company can much more easily grow to be multiples of its current size. Many small caps stay small because they have structural problems, management lacks the capability to grow the business, or their niche simply isn’t large enough to support a bigger enterprise. That said, many small caps can graduate to greater things, earning shareholders tremendous returns along the way.

Small-cap stocks tend to experience more price volatility and to suffer more stock price destruction than their larger cap peers during bear markets and when equities are broadly struggling due to inflationary and recessionary fears.

Small cap stocks typically underperform entering recessions and periods of economic weakness but outperforms coming out of them. In the long run, small caps tend to be winning investments. Yale professor Roger Ibbotson and financial consultancy Duff & Phelps analyzed nearly a century of data to find that small caps have outperformed large companies by 1.6% on average every year through 2020.

Fearful investors who throw in the towel during market downturns risk missing out on the rewards when the market possibly reverses course in 2023.

“This is one of the best times to invest in small company stocks that we’ve seen in a very long period of time,” says Gregg Fisher, founder of global small cap hedge fund Quent Capital, which manages $1 billion in assets. “The odds historically of a huge rally off this massive decline are high.”

The small-cap benchmark Russell 2000 Index (RUT) generated a total return (price appreciation plus dividends) of -20.4% for the year-to-date through Dec. 16. That trailed the S&P 500’s (SPX) total return of -17.9%.

No surprises there. Risker and “growthier” equities such as small-cap stocks tend to underperform when markets are volatile and headed south (bearish).

By the same token, however, small-cap stocks also tend to outperform the broader market when equities are catching a bid. No one can know for certain if we’ve already seen the bottom of our current bear market. Once the equity malaise lifts, however, the best small-cap stocks to buy should theoretically be among the market’s top outperformers.

To find the best performing small cap that have continued to grow through the bear market, Search for companies with a market value between $300 million and $2 billion that also had positive sales growth over the past 12 months and a share price of at least $5. Financial institutions, REITs, utilities, royalty trusts and limited partnerships were excluded, as were companies that have been public for less than one year.

Over time, small-cap stock prices tend to be more volatile than those of larger companies, and stock values fluctuate more dramatically. But, in general, the longer the evaluation period, the greater the likelihood that small-cap stocks outperform the large-caps.

in recent months small-cap stocks have fallen sharply amid a broader pullback on fears of a Federal Reserve Board rate hike, especially in high-priced growth stocks. Since small-cap stocks are more likely to be in their growth phase and are often unprofitable or minimally profitable, they get hit harder during “risk-off” moments like the one that started 2022. In other words, small-caps tend to underperform during bear markets but outperform in bull markets.


References:

  1. https://www.fidelity.com/insights/investing-ideas/small-caps-2023
  2. https://www.forbes.com/lists/best-small-cap-companies
  3. https://money.usnews.com/investing/slideshows/9-of-the-best-small-cap-stocks-to-buy-for-2023
  4. https://www.fool.com/investing/stock-market/types-of-stocks/small-cap-stocks/
  5. https://www.fool.com/investing/stock-market/types-of-stocks/small-cap-stocks/how-to-find-small-cap-stocks/