September 12, 2026, Issue 34

Welcome our new Sponsor

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So, hello Hair Concepts. You’re looking good on Dadsadvice.

The Downsizing Dilemma

As some of you know, Mrs. Dadsadvice and I have sold the house and have an accepted offer on a new one. The chore of packing up a house is never easy, but I will say that going large, like we did 8+ years ago, is much easier than downsizing. Almost every closet and cabinet poses a dilemma. Do we take this? Do we need that? My rule of thumb: If we haven’t seen or used something for 6 months, out it goes. Still, some items have sentimental value, which makes the decision even harder. Having just finished season 2 of Reacher, I have a newfound respect for the way Jack lives. A toothbrush in his pocket and ready for adventure.
What are your stories about moving? Have you downsized? Do you have a move planned? Let us know.

What did Canada do?

Did someone stick a hockey puck up Donald’s ass when he was a kid? Aside from his merry band of sycophants, I truly believe we are experiencing full blown Trump fatigue. Tariffs that add to inflation, a war in Iran that has no end or strategy that has added to inflation, and the new plan to bribe voters for an election win. Through all of the nonsense, the most annoying has to be the fight with Canada. The two countries have been solid trading partners for decades. Cars and parts, steel, lumber, many other items have been going back and forth for so long that the relationship feels more like close family than anything else. Until now. This trade war only hurts consumers and businesses on both sides of the border. And let me tell you, being in Canada while writing this with absolutely no bourbon in sight hurts too! Hopefully before too long, saner and cooler heads will prevail.

A Rough Time for Stocks, What Comes Next?

This last few days in the markets have not been pretty. One of the few bright spots, as mentioned in the last newsletter has been Apple. In anticipation of the release of the foldable iPhone, and again once it was revealed, the stock has jumped by a total of about 10%. While the shares are expensive on a valuation basis, I believe we should hold on here. The new improved Siri will come, and although it is crazy expensive, I believe you will see a ton of foldables in the coming months. Interesting that Samsung came out with their foldable model in 2019. With all the hoopla around this Apple version you’d think they were the first. Just proves again that Apple is a great marketing machine.
Gazing into the crystal ball at this moment is a little scary. We have wars on multiple fronts, none of which seem to have an endgame. The price of a barrel of oil is at $100. Just to recap, oil goes into almost everything we use from the gas in the car, to the plastics that make so many products, to polyester for clothing, to polypropylenes that are used everywhere. So, the inflation picture is not getting better. Sovereign debt levels are rising, and so are interest rates. With mortgage rates in the USA at 7%, and rising in Canada as well, you can expect a slowdown in an already slow housing market. This will affect home builders and companies like Home Depot and Lowe’s. The upcoming elections in the USA and in Quebec could have implications for the market as well, with most being negative. A win by the separatist PQ in Quebec could upset the markets there, while the expected Democrat takeover of Congress could potentially be bad news for the US markets.
Over the coming weeks, the plan is to raise some cash by selling some of the winning positions we are holding. Of course I will keep you updated, but stocks like HOOD and COF might be sale targets if they reach certain prices. NKE might be a case of one we got wrong and it may be time to move on from it, we shall see.

On the other hand, we need to acknowledge that corporate earnings have been absolutely outstanding. I’m almost looking at some stocks and wondering why they are so cheap on their valuation. One company whose earnings are upcoming at the end of the month is Micron (MU). The stock is trading at a forward price to earnings multiple of about 6, yet they are growing earnings at a 25%+ clip. As I have mentioned, since their last incredible quarter, the stock has actually fallen by about 20%. We have added to our position a few times and may do so again. Historically, memory stocks like Micron have been seen as cyclical, rising and falling with demand that flowed up and down. Now, with demand for memory from AI only increasing, and the need for ever increasing amounts of memory in our phones, computers, tablets, and even cars, I believe the demand will remain strong well into at least 2028. I am banging the drum to buy MU into earnings. I believe we will see crazy sales and even crazier margins.

Thought of the Day

The very latest crazy from the POTUS has got to be a promise to pay each adult citizen $5,000 if the Republicans hold onto control of Congress. First, this is likely illegal as it defines the word bribe. Second, he would clearly be sending checks to roughly 50% of the populace that did not vote Red. Third, those checks would amount to more than the defense budget for a country already $40T in debt.
My thought: We have to rush through our citizenship test; could be worth $10K!!

Always look forward to your comments, questions, and thoughts for Dad!