The Mendoza Line

The Mendoza line is baseball jargon from the seventies for the supposed threshold for offensive futility of hitting at an average of .200.  Players can be above or below the Mendoza line (named for major leaguer Mario Mendoza, a lifetime .215 hitter).  There are several Mendoza lines on Wall Street currently…lines that when crossed get everyone’s attention.  For example, the Mendoza line for the ten year treasury appears to be 5%, above that and money flows from stocks to bonds.  Gasoline has a Mendoza line at $4 per gallon, above $4 and the economy begins to slow.  Bitcoin has seen somewhat of a Mendoza line at $26,000 and has made a recent significant rally to $34,000 plus.  For stock traders, the 200 day weekly average is at 3945, which is a line we do not want to see crossed.

Inspiration

“Open your eyes, look within.  Are you satisfied with the life you’re living?”
-Bob Marley

“The lack of money is the root of all evil”
-Mark Twain

“Success is the ability—to go from failure to failure—without losing your enthusiasm.”
-Winston Churchill

“It’s what you do in the present that will redeem the past and thereby change the future.”
-Paulo Coelho

Inspiration Archive

Disclaimer

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Projections and forward-looking statements regarding estimated investment outcomes are based on assumptions that we believe are reasonable at this time. However, actual results may vary materially from stated expectations, and we make no guarantees of the future performance of an investment in our accounts described on this website. The performance results do not reflect the deduction of other fees or expenses a client may incur in the management of such client’s investment advisory account. A client’s return with respect to an investment would be reduced by any fees or expenses a client may incur in the management of its investment advisory account. Please contact us to learn more about our fees. Past performance is not a guarantee of future results.

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