June 2, 2010

Supervisors continue hearing for liquor license transfer

Chadds Ford supervisors are considering an inter-municipal
liquor license transfer for the Olive Branch Restaurant on Route 202. Owner
Brian McFadden bought Antonio’s restaurant and motel and is looking to
re-establish the use of both businesses.

Supervisors opened a hearing into the liquor license
transfer prior to the start of their June Board of Supervisors meeting and
continued the hearing to 7 p.m. July 7, just before the start of their July
meeting. Supervisors’ Chairman Deborah Love wanted the continuance so
Supervisor George Thorpe, who was absent from the June session, could read the
transcript and ask questions.

During the June 1 testimony, McFadden said the motel part of
the property— with 12 rooms—would become part of the Budget Host Inn franchise
and that he hired the operators of the Olive Branch in West Chester to operate
the restaurant.

He added that there is no abutting residential property so
serving liquor, beer and wine at the restaurant would pose no nuisance.

“We want to have a positive impact on the community,” he
said.

William Shehwen III, the applicant’s attorney, described the
restaurant as an Italian bistro/tapas restaurant and that dinner is the only
meal currently being served. Lunches, brunches and breakfasts would be added
later.

Shehwen also said the restaurateurs have been state
certified on the duties and responsibilities of operating with a liquor
license.

Restaurant manager Marie Cantatore, who has 30 years of
restaurant experience, said the restaurant is currently up and running as a
BYOB and stays open until 9 p.m. With the liquor license it would stay open
longer, until 2 a.m. with no one allowed entry after 1 a.m. per state law, she
said.

The dollar ratio between food and alcohol would be 50/50,
Cantatore testified.

She said they want to slowly expand, establishing a patio
bar in a breezeway between the restaurant and the motel and later possibly
turning the basement area into a piano bar and building a gazebo outside the
basement.

She said no outdoor music is planned, but would apply to the
township if those plans change.

Shehwen later said the piano bar wouldn’t happen before
September and the gazebo sometime next year.

Other business
Supervisors appointed Karen Eckard as the new assistant secretary/assistant
treasurer and right to know officer. Township Manager Joe Barakat said Eckard
has 10 years of municipal experience, most recently in Pocopson Township.

About Rich Schwartzman

Rich Schwartzman has been reporting on events in the greater Chadds Ford area since September 2001 when he became the founding editor of The Chadds Ford Post. In April 2009 he became managing editor of ChaddsFordLive. He is also an award-winning photographer.

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Crowds fill museum during annual Antique Show

Crowds fill museum during annual Antique Show

The Brandywine River Museum maintained a 39-year tradition
by launching the Memorial Day weekend with the opening of the annual three-day Antique
Show that raises money for the museum’s Volunteers Art Purchase Fund.

This year more than 400 people attended the Friday night
reception to see the wares offered by 31 antique dealers. Attendance through
Memorial Day was 2,143, according to figures provide by Lora Englehart of the
conservancy’s public relations department.

Jim Duff, executive director of the Brandywine Conservancy
and the museum, said the Antique Show and the winter Critter Sale have raised
enough money for the fund to purchase more than 200 works of art over the
years. Some of those purchases have been significant.

“Some very important pieces, like the James Peale still life
that was purchased a few years ago from New York. It’s one of the most
important pieces in our still life collection,” Duff said.

Duff added that many of the dealers, some coming from as far
as Alabama and New Hampshire keep returning to do the Chadds Ford show.

“There are many repeats. It’s quite wonderful that they want
to be back. That makes us happy and proud,” Duff said.

While many of the dealers traveled far, some were local. One
local antique dealer was Richard Worth of R.M. Worth Antiques of Chadds Ford.

One of the pieces he was showing for sale was a 1937 scale
model of the Hagley Mills that was made for E. Paul DuPont by one of DuPont’s
employees. It was a working model made of wood, Worth said. The selling price
was $12,800.

Accompanying the show was a special exhibit, “Crocks, Jugs, and Jars: Decorated American Stoneware” that
will run through July 18. It features an array of pottery demonstrating
decorative techniques used by craftsmen during the 18th and 19th
centuries when food in most American households was stored in salt-glazed
stoneware.

About Rich Schwartzman

Rich Schwartzman has been reporting on events in the greater Chadds Ford area since September 2001 when he became the founding editor of The Chadds Ford Post. In April 2009 he became managing editor of ChaddsFordLive. He is also an award-winning photographer.

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Adopt-a-Pet

Adopt-a-Pet

Emma
is an adult spayed female brown and orange tabby domestic short hair catthat is available for adoption through the
Chester County SPCA. She came to the shelter as a stray in January. Her finder found her on
the road and brought her to here to find a safe new indoor home. She is a very
affectionate cat. Emma loves attention and even likes to give kisses. She is a
sweet and gentle girl who is looking for aresponsible
care giver who will give her the love and attention she deserves. If you are
able to provide that home, visit the Chester County SPCA at 1212 Phoenixville
Pike in West Goshen or call 610-692-6113. Emma’s registration number is 96798155.
To look at some of the other animals available for adoption, visit the shelter
or log onto http://www.ccspca.org/

About CFLive Staff

See Contributors Page https://chaddsfordlive.com/writers/

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Criticizing Rand Paul and Title II

Rand Paul disappointed a lot of people just 24 hours after
he won the Kentucky Republican Party nomination for U.S. Senate last month. The
newly elected nominee fell flat on his face when MSNBC’s Rachel Maddow called
him out for saying he disagreed with Title II of the Civil Rights Act of 1964.

That was the portion of the act that made it illegal for
private businesses to discriminate against blacks and other minorities. Though
Dr. Paul, an ophthalmologist, said he supported the rest of the act—the
portions that struck down discriminatory laws in the public (read that
governmental) sector—he failed to support his position on Title II. He
stumbled, babbled and tripped on his own tongue.

We’d like to think that even people who disagree with him on
that point would be willing to have an honest and open discussion on the
matter. The nominee was given an opportunity to explain himself and clarify his
position on NBC’s Meet the Press the following Sunday, but he bailed out with a
ridiculous excuse of being treated unfairly by a biased liberal press.

This was inexcusable. It made him look cowardly and that he
was being muzzled by his Republican handlers.

Ardent libertarians expressed disappointment in Dr. Paul’s
inability to represent his position. Several writers, such as Jacob Hornberger
and Sheldon Richman wound up giving examples of businesses in the south that wanted
to desegregate on their own but were thwarted by local law enforcement. The
candidate himself failed to make such references.

John Stossel also told Megyn Kelly of Fox News that business
people should have the right to discriminate if they so choose. They will lose
business, he said, but that’s their own affair.

In a recent column Mr. Stossel wrote: “In cities throughout
the South, beginning in 1960, student-led sit-ins and boycotts peacefully
shamed businesses into desegregating whites-only lunch counters. Those
voluntary actions were the first steps in changing a rancid culture. If
anything, Washington jumped on a bandwagon that was already rolling.

“It wasn’t free markets in the South that perpetuated
racism. It was government colluding with private individuals (some in the KKK)
to intimidate those who would have integrated.”

Of course, Messrs Hornberger, Richman and Stossel are a
bunch of middle-aged white guys so they either don’t care or are racists,
right? Wrong.

Consider the opinion of Elizabeth Wright, a black woman and
founding editor of Issues & Views. A brief online bio says of the
newsletter: “Its editorials countered notions of victimization and collective
entitlement prevalent in the black community. …The newsletter’s conservatism
was derived from the wisdom of earlier generations of American blacks, like
Booker T. Washington, who attempted to steer their people towards greater
economic self-reliance.”

She, too, criticizes Dr. Paul for his failure to challenge
the liberal position, saying his lack of preparation and ultimate reversal of
position reflected nothing more than politics as usual.

In her piece “The Civil Rights Myth: Integration & the
End of Black Self-Reliance,” Ms. Wright points to the ignorance of many people,
that American blacks had created “multitudes of institutions
throughout the segregation period, even before slavery was officially ended.
These were institutions such as restaurants,
stores, motels and movie theaters
. There were banks,
insurance companies, newspaper publishers
. It is assumed that all
blacks were helpless victims, financially crippled drudges, with no resources
to pool among themselves. In fact, most of black entrepreneurial success originated in
the South
, the poorest region and the one of greatest need.”

She asks why whites of the ‘50s and ‘60s failed to support
those endeavors. She answers that by saying, “One reason is that ever since the
days of Abolition, whites had grown used to having this mass of people to pity.
These black victims of the “bad” whites made the “good”
whites feel expansive and noble, as they still do.”

The public accommodations provision of the Civil Rights Act
effectively pulled the rug out from black entrepreneurship. Without that
provision, competition from black business owners would have brought about
desegregation. Wanting the green dollar, white businesses would have welcomed
the black customer.

Rational self-interest works better, and in a more benign
way, than government force. It breeds respect instead of pity, self-reliance
rather than dependency.

Ms. Wright’s full essay in Alternative Right is well worth
reading, by liberals, conservatives, libertarians, blacks and whites alike. It
can be found at http://www.alternativeright.com/main/the-magazine/the-myth-of-civil-rights/

About CFLive Staff

See Contributors Page https://chaddsfordlive.com/writers/

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Police log for June 3

• Pennsylvania State Police from Troop J, Avondale, reported
arresting two Wilmington men in Pennsbury Township on May 28 for DUI and
possession of controlled substances and paraphernalia. The men were identified
as Antoine Jones and Justin Boc. No other information was reported.

• At a sobriety checkpoint on Route 1 in Kennett Township
during the Memorial day weekend, state police made four DUI arrests and two
others were arrested for drug possession, a police report said.

• State police from the Media barracks reported a DUI arrest
on Route 1 just north of Route 202. The report said Thomas James Quartermus,
50, of Glen Mills, was stopped after he was observed driving erratically. He
was then found to be DUI and placed under arrest. The incident happened at 9:21
p.m. on May 29.

• Two West Chester men were charged with disorderly conduct
following an incident at the Sentinel Motel on Route 202 in Chadds Ford on May
30. According to a police report, Eugene McHugh, 45, and Kevin W. McDermott, 51
were charged after they tried to engage another person in a fight.

• Someone stole the Hampton Inn’s weekend deposits from a
safety deposit box at the hotel, a police report said. The theft, of more than
$2,400 in weekend deposits, happened sometime between 4:30 p.m. on May 31 and 5
a.m. on June 1.

About CFLive Staff

See Contributors Page https://chaddsfordlive.com/writers/

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Blogging Along the Brandywine: “Crowbar” Sue Minarchi

Blogging Along the Brandywine: “Crowbar” Sue Minarchi

The village of Chadds Ford
is quickly getting to know Sue Minarchi, the energetic and effervescent
president of the Sanderson Museum on Creek Road.

Two summers ago, before
she became president, I started calling her “Crowbar Sue.”

Why?

Well, as always, we were
trying to save money at the Sanderson, and instead of hiring a contractor, Sue
and I had decided to take on a little do-it-yourself project. The challenge was
in removing the shelves and Plexiglas© photo display which unfortunately had
been permanently installed in the late 1960’s over an architecturally
significant detail in the mid 19th century home —a second front door.

I was there with the claw
end of my hammer prying out the individual nails holding the super structure
together.

“Wait a minute,” she said
and came at the sides with her crowbar.

SKKRRRRREEEE ….CRRAACK
went the framing …and voila! There was the old door still intact!

This is the way Sue
Minarchi takes on all her challenges – head on!

Sue grew up in Montville,
New Jersey in historic Morris County just north of where Washington’s troops
were quartered during the bitter winter of 1779-80.

“My father owned a
trucking company and my mother was a stay-at-home mom,” she said.

As a business administration
major with a concentration in marketing at Montclair State University in
Montclair, NJ, Sue’s post graduate life took her to Michigan and Louisiana
before moving to Unionville 10 years ago. “Now, I feel like I’ve lived here all
of my life,” she said.

So how did Minarchi get
involved with the little museum in the village of Chadds Ford?

Minarchi, an art student
of Karl Kuerner relates, “Karl originally invited me to see the Sanderson
Museum and I became involved as a museum guide. Soon thereafter, I was
invited on the Board and the rest, as they say, is history.”

Shorthand for, Minarchi,
like many others, had been bitten by the Sanderson bug.

“I have an interest in preserving history and often wonder
about the person who might have used a particular artifact and how it was a
part of their life. And, of course, I have my own little collection of items
that have been a significant part of my life.”

“I think there is a lot of
Chris in me,” she said.

In September of 2009 after
leading the board’s steering committee in restoring the outside of Sanderson to
its mid 19th century appearance when it was owned by the Bullocks and Harveys,
Minarchi was elected president of the museum.

She is currently
spearheading the Steering Committee’s efforts with a major landscaping project
as well as getting bids for a new HVAC system in order to better preserve the
eight-room collection.

And she does all of this
with a full-time job as Project Manager for Synthes, a leading global medical
device company in West Chester.

Minarchi once said she
wanted to run the Sanderson as if it were her own company and added, “The
Sanderson Museum is a gem that I’d like to be able to share with visitors both
locally and nationally. Our collection spans the better part of several
centuries and contains artifacts of worldwide significance and interest.

So don’t underestimate
this pretty lady with a crowbar in her hand. You will find with the right
tools, she can accomplish anything!

About Sally Denk Hoey

Sally Denk Hoey, is a Gemini - one part music and one part history. She holds a masters degree cum laude from the School of Music at West Chester University. She taught 14 years in both public and private school. Her CD "Bard of the Brandywine" was critically received during her almost 30 years as a folk singer. She currently cantors masses at St Agnes Church in West Chester where she also performs with the select Motet Choir. A recognized historian, Sally serves as a judge-captain for the south-east Pennsylvania regionals of the National History Day Competition. She has served as president of the Brandywine Battlefield Park Associates as well as the Sanderson Museum in Chadds Ford where she now curates the violin collection. Sally re-enacted with the 43rd Regiment of Foot and the 2nd Pennsylvania Regiment for 19 years where she interpreted the role of a campfollower at encampments in Valley Forge, Williamsburg, Va., Monmouth, N.J. and Lexington and Concord, Mass. Sally is married to her college classmate, Thomas Hoey, otherwise known as "Mr. Sousa.”

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Bits & Pieces for June 3

• Roger Steward, owner of Jimmy John’s is hosting a “Funday”
to help rebuild the restaurant that was gutted by fire last month. The event
will be at the Radley Run Country Club, 2-6 p.m., June 27. There will be live
music. A $15 donation at the door is suggested.

• The Chadds Ford Civic Association is planning a canoe trip
down the Brandywine as part three of its four-part effort to raise money for
the Brandywine Battlefield Park. The canoe trip will take place on Sunday, June
13, from 11:30 a.m. until 3 p.m. The meeting point is the Wilderness Canoe
Outfitters, 2111 Concord Pike, Wilmington. A safety program will be given along
with outfitting for gear. The cost is $65 per canoe. To sign up for the event,
go to http://the.chaddsfordcivicassn.org/4theLoveoftheBattlefield/BattlefieldEvents.htm

• Another event to raise money for the park will be held
Saturday, June 5, at the park. This will feature Loic Barnieu portraying
General Marquis de Lafayette at 1 p.m. At 2 p.m. Alan R. Hoffman, author of
“Lafayette in America,” will talk about Lafayette’s return to America in the
1800s. The lecture is free, but donations will be accepted, a press release
said.

• The Brandywine River Museum will host a bonsai display in
the museum courtyard this weekend, June 5 and 6 from 9:30 a.m. to 4:30 p.m.
Members of the Brandywine Bonsai Society will demonstrate training techniques
and answer questions regarding special care of the trees.

• The Brandywine River Museum will offer free admission to
active duty military personnel and their families through Labor Day 2010 as
part of the Blue Star Museums’ program, a partnership of the National Endowment
for the Arts, Blue Star Families, and more than 600 museums across America.

• Sculptor Stan Smokler exhibits metal works inspired by the
sea at Steel Currents, open June 4 through July 18 at the Delaware Museum of
Natural History. The opening reception on Friday, June 4, is part of the City
of Wilmington’s “Art on the Town” loop. Smokler’s welded steel
sculptures represent abstractions of a horseshoe crab, lobster, seaweed,
nautilus and other marine life. Each piece is accompanied by the artist’s own
interpretations and those of Elizabeth Shea, Ph.D., the Delaware Museum of
Natural History’s Curator of Mollusks and specialist in the biodiversity of
deep-sea cephalopods. The exhibit runs through July 18. Admission is $7 adults,
$6 seniors, $5 children (3-17), free for children 2 and younger.

About CFLive Staff

See Contributors Page https://chaddsfordlive.com/writers/

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Mind Matters —Aesop’s fable and beyond

When one of my children was in third grade, the class played
out renditions of Aesop’s Fables on the little meeting house stage of West
Chester Friends.

One story in particular has stayed with me for over twenty
years. May be it was those cardboard waves being pulled to and fro by some
unseen 8-year-old hands that keeps the image so alive. Standing on the “shore”
by the “water,” a child lectures to the “struggling” boy caught between waves’
movements. The lecturer notes how the swimmer didn’t heed the warnings, should
have known better, didn’t know how to swim in the first place, and so on. As a
result, the boy drowns.

Beyond the image of these third graders, Aesop’s message
carried, then and now, a most poignant lesson. Aesop, another young thespian
reminds us, tells us that when a person is drowning (or in trouble in some way)
save the lecture for later. Do the rescuing and the helping first.

Aesop noted this thousands of years ago, but we humans don’t
do well remembering the wisdom already given us. Time and again, we lecture or
criticize, when what is needed is support, aid, sometimes even an out and out
rescue.

My Mother got Aesop. I remember her telling me about the
time my brother, as a 2-year old, climbed out an open window and onto the roof
below, naked save for a superman cape and an intention to fly. She
instinctively knew that that was not the time for a lecture, but a very
persuasive coaching back to the window and into safety—the stern talking to
come later.

Recently, I saw a documentary (Sergio, HBO Documentary, 2010
Chasing The Flame, LLC) about Sergio Vieira de Mello, who had been the United
Nations High Commissioner for Human Rights and the Secretary-General’s Special
Representative in Iraq. When, in August, 2003, the Baghdad Canal Hotel was
bombed by terrorists (who may well have been targeting Sergio himself), Sergio
and a colleague became pinned in the rubble for many hours. Two U.S. military
rescuers who worked diligently to free the two men recalled their efforts, even
to the point of a re-enactment of events. Sergio did not survive; his companion
did; but his legs were amputated at the site of entrapment. I note this story
here as it relates to Aesop’s fable (not as it relates to the horrors of such
primitive surgery in horrific circumstances).

All four men manifested bravery and persistence. However,
the two rescuers exhibited, it seemed to me, the polarities of Aesop’s tale.
One soldier commended Sergio’s selflessness (even to the point of sending a
letter to the U.N. describing his experience with Sergio). This soldier
perceived Sergio as compassionate and courageous, uncomplaining about his own
state, yet constantly concerned about the well-being of his staff. The other
soldier, meanwhile appeared still angry that Sergio never followed his lecture directives
to “pray to Jesus, God will save you.”

Despite the adage that there are no atheists in foxholes,
Sergio would not succumb to this religious soldier’s admonitions. And so, the
one soldier was bereft that Sergio could not be saved, and saw in this man a
bright beacon of compassion, the other soldier remained caught in “he didn’t
follow my directives, therefore, it was Sergio who failed.” To my mind, this
latter rescuer didn’t get the Aesop memo.

So what does this have to do with anything in our world now?
I look at the oil spewing into the Gulf and I think, while the government needs
to thoroughly investigate the whys and wherefores of BP, Halliburton, and
whatever corporations are involved, the most important focus now is how to
resolve the problem at hand and not expend energy (hmmm!) on blame.

The alcoholic may need a treatment center, but don’t lecture
him about that when he’s inebriated. Wait until morning for “The Talk.” The
teenager may text home at 2 a.m.—well beyond curfew. No time for text message
battles—the lecture can come after everybody gets some sleep.

Beyond Aesop’s fable, I would like to voice another
observation about the oil disaster in the Gulf. My clients can be wonderfully
wise. Often their concerns go well beyond their personal life to all life on
earth. Recently, several women have expressed their worry about the oil gushing
into the Gulf. One noted, “Mother Nature is not happy with us.” Another put
forth the idea of having a world day of humble prayer for forgiveness to the
earth for what we have done to her. These women may be onto something. For all
the linear thinking (beyond even the blame game) about how to solve this tragic
disaster, no one has considered that maybe the Halliburton’s and the BP’s (and
we are all accountable to some extent) ought to lay prostrate on those tarred
Gulf shores and shed tears for what they (and we as humans) have done in
plundering the earth’s resources without ever so much as a “Thank you, we are
humbly grateful for all your bounty.”

Trying not to lecture here when the need is for the
solution, not the blame, I do wonder if some soulful humility (the word itself
comes from the Latin word humus—meaning Earth) might be in order in addition to
some non-linear problem solving.

In The Heart of Being Hawaiian (Watermark Publishing, 2008),
Sally-jo Bowman reminds us of “ho’oponopono.” This is the Hawaiian family
tradition whereby people seek to solve problems, not by focusing on blame, but
by “making right” relations that are not working. It would seem that our
relationship, not only with each other, but also with the earth, has gone awry.
Perhaps we all need to take heed how to “make right our relationship” with
Mother Earth. Time for “ho’oponopono.”

* Kayta Curzie Gajdos holds a doctorate in counseling
psychology and is in private practice in Chadds Ford, Pennsylvania. She
welcomes comments at MindMatters@DrGajdos.com
or (610)388-2888. Past columns are posted to www.drgajdos.com.

About Kayta Gajdos

Dr. Kathleen Curzie Gajdos ("Kayta") is a licensed psychologist (Pennsylvania and Delaware) who has worked with individuals, couples, and families with a spectrum of problems. She has experience and training in the fields of alcohol and drug addictions, hypnosis, family therapy, Jungian theory, Gestalt therapy, EMDR, and bereavement. Dr. Gajdos developed a private practice in the Pittsburgh area, and was affiliated with the Family Therapy Institute of Western Psychiatric Institute and Clinic, having written numerous articles for the Family Therapy Newsletter there. She has published in the American Psychological Association Bulletin, the Family Psychologist, and in the Swedenborgian publications, Chrysalis and The Messenger. Dr. Gajdos has taught at the college level, most recently for West Chester University and Wilmington College, and has served as field faculty for Vermont College of Norwich University the Union Institute's Center for Distance Learning, Cincinnati, Ohio. She has also served as consulting psychologist to the Irene Stacy Community MH/MR Center in Western Pennsylvania where she supervised psychologists in training. Currently active in disaster relief, Dr. Gajdos serves with the American Red Cross and participated in Hurricane Katrina relief efforts as a member of teams from the Department of Health and Human Services' Substance Abuse and Mental Health Services Administration.Now living in Chadds Ford, in the Brandywine Valley of eastern Pennsylvania, Dr. Gajdos combines her private practice working with individuals, couples and families, with leading workshops on such topics as grief and healing, the impact of multigenerational grief and trauma shame, the shadow and self, Women Who Run with the Wolves, motherless daughters, and mediation and relaxation. Each year at Temenos Retreat Center in West Chester, PA she leads a griefs of birthing ritual for those who have suffered losses of procreation (abortions, miscarriages, infertility, etc.); she also holds yearly A Day of Re-Collection at Temenos.Dr. Gajdos holds Master's degrees in both philosophy and clinical psychology and received her Ph.D. in counseling at the University of Pittsburgh. Among her professional affiliations, she includes having been a founding member and board member of the C.G. Jung Educational Center of Pittsburgh, as well as being listed in Who's Who of American Women. Currently, she is a member of the American Psychological Association, The Pennsylvania Psychological Association, the Delaware Psychological Association, the American Family Therapy Academy, The Association for Death Education and Counseling, and the Delaware County Mental Health and Mental Retardation Board. Woven into her professional career are Dr. Gajdos' pursuits of dancing, singing, and writing poetry.

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Know Your Finances: Rethinking gold



Richard from Wilmington asks…Is the stock market getting ready to crash again? Should I sell my stocks?


The short answer is: I don’t know. No one can predict the market’s unique behavior in the short-term.


The long answer is: No, I don’t think the market is about to crash again. True, it has taken no prisoners since its corrective dive from the recent April 23 peak. The S&P 500 is down 12 percent since the peak and all gains for the year have been wiped out. All is not lost; let’s not forget that despite this current volatility, portfolios are at much higher levels than in 2008.


The markets frequently do not act rationally to events and this is a good example of that. Economists and analysts have continuously been debating whether or not the domestic economy has been truly slowly healing or instead masking continued sickness.


Greece’s debt problems, and by extension the weakening of the European Union’s Euro currency, has been a perfect foil for market bears to take profits and run for the hills. The fear is that Greek and possibly Spanish and Portuguese sovereign debt failures will spread globally and affect the balance sheets of large banks. The worst case chain of events would go like this: large banks with European debt exposure would seize up again and restrict lending, struggling companies that can’t borrow would cut expenses or even fail, jobs would suffer even more, consumers would revisit recessionary spending patterns, companies and their earnings would suffer from weak demand, and stock prices relative to their earnings would look really expensive again.


Greece is not the only issue spooking the markets. The financial reform bill has a lot to do with it. The bill that Congress is dealing with has elements that could hurt large banks’ income in a variety of ways, such as from higher capital reserve requirements and loss of derivative income.


The Gulf oil spill is also hurting market sentiment. Energy is a large sector of the economy (10 percent of the S&P 500) that is under a microscope and deep water drilling activities are temporarily suspended.


It is true that things are less than perfect. But, this is certainly not 2008 all over again. Banks are healthier, housing indicators are rebounding, and first quarter corporate earnings were the strongest they have been in several years. While it is possible that Greece’s problems could have a spillover affect on global debt markets, I don’t see it as a high probability event.


The bottom-line is that following the sell-off of recent weeks, the market is oversold by just about any measure. I expect the markets to remain bumpy for a while, but if you are a long-term investor try not to be influenced by short-sighted reactionary selling.


Dave from West Chester asks…Gold seems to be a safe haven investment right now. Are there risks?


Yes! There are risks to buying gold at its all time high. Gold as a safety net is a mirage. When large investors decide to sell the asset it will drop like a rock and the little guys won’t know what hit them. I believe gold is our latest speculative bubble where the greater fool theory is alive and well. The greater fool theory is when perennially optimistic investors keep buying as long as they think they can find greater fools who can pay more for their overvalued asset!


Demand for gold has been strong for the last five years, most dramatically so over the last two years. Global crises and debt issuance and, up until recently, a weak dollar, have intensified the lure of gold as a safety net. Gold no longer backs any currency and, beyond its limited value in jewelry, electronics, and medicine, has little intrinsic value. It is worth only what investors speculate it is worth.


Contrary to popular belief, gold is not an exceptional hedge against inflation. Sure, if you time it right you can make a boatload of money, but we can say that about most volatile investments. Gold has been publicly traded since the late 1970s. It lost half its value in the 1980’s and lost 25 percent of its value in the 1990s. Treasury-inflation protected bonds do a better job with a lot less volatility. The stocks of well-managed companies that have pricing power do an even better job at protecting against inflation.


Gold has a mystique and an allure, but it is a speculative investment. The party may continue for a while but it’s too late to make an entrance.

About Ellen Le

Ellen is the Founder and President of Ascend Investment Management. She was born in Philadelphia and has lived in the Delaware Valley for most of her life. When she is not researching investments and managing portfolios, she pursues her interests in tennis, bridge, hiking and art. Beginning her investment career in 1981 as a stockbroker at E.F. Hutton and Co., Ellen now has over 20 years of investment management experience. Prior to founding Ascend in 2006, she managed high net worth assets for many years at Bank of America, Mellon Bank, and most recently at Davidson Capital Management. At Davidson Capital Management, Ellen served as a Senior Vice President and Senior Portfolio Manager of the firm. She managed assets for more than 50 family relationships and was a core member of the firm’s Investment Committee.Ellen earned a BA in History from Brown University and a MBA in Finance & Investments from The George Washington University. She is a member in good standing of the Chartered Financial Analyst (CFA) Institute, which is a global organization dedicated to setting a high ethical standard for the investment profession. Her professional memberships include the Delaware County Estate Planning Council, Women Enhancing Business (WEB), and the Chadds Ford Business Association. She is a docent with the Delaware Art Museum and an active volunteer with the Brown University Alumni Association.

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