If you are a sports fan, one of the things you love about the athlete’s passion for doing the sport. In reality the athlete has spent years fine tuning their craft and really enjoyed the sport they are playing. It helps if the athlete is making enough money that it is their full-time job. Watching those players, others want to play the game and if they really enjoy playing, you can see the passion they are playing with. Everyone wants to bottle that passion or tap into it.

One of the ways to tap into passion is what author Adam Davidson’s book titled The Passion Economy, published by Alfred A Knopf, NY, 2020.

If you think about work in the 1900’s, people generally went to work for someone else in the urban areas, in the rural area family farming dominated. The family farm allowed people not to starve, but most farms did not bring in a lot of income. Farm families tend to be large, partly because the parents hope one of the sons carries on farming. The rest either have to buy a farm or head to the urban areas to find employment. As the making of things moved from craft or small-scale production to large scale production, many people were employed in reasonably repetitive work, which paid the bills and allow families to begin and grow. The people on the assembly line did their work but quality became an overwhelming goal at many auto companies that assemble cars on the assembly line, which is one of the reasons why outsourcing was adopted.

When service type jobs or what was known as office jobs became more prevalent in society, incomes were a little higher but it was reasonably repetitive for services that outside the founders, few had real passion for it. People were good at their jobs, but not necessarily passionate.

Technology and trade gave rise to the ability to be passionate about whatever interests you. If you go to the local convention center, you will find many different organizations gathering and money to be made about what people are passionate about. Many years ago, attended a political convention – we were trying to figure out how to elect our party. Beside the convention was a convention where people dressed up as their favorite comic character. Walking through that convention it was easy to see the passion and more money was being exchanged for comics, pictures, costumes, websites, etc. than at the political one.

Mr. Davidson believes the shift to a passionate economy comes with a handful of easy-to-learn rules, a shift of perspective and hard work to marry passion and business.

Scott Stern, professor of business at MIT’s Sloan School of Management offers 3 rules for businesses:

1. look inside yourself and make a thoughtful assessment of your abilities, interests, particularities and weaknesses. You will be able to narrow what you like to do and equally important do not like to do. The things you like to do will be what problems do you like to solve?
2. pick your customer. We have a wonderful tool called the internet. Your customer can be around the world. To find them can be a harder task, but doing market research to find paying customers is doable.
3. pick your competition. Who do you compete against and do not compete against? By picking your competition, you are deciding how your product or service will be viewed by your potential customer and what other products and services they will compare it to. Who are your partners?

Rules of the Passion Economy

Rule #1 Pursue Intimacy at Scale

Identify the set of things that you love to do and that you do well. People often succeed because they have a set of various skills that don’t normally go together.

Match your passion to the people who most want it. It may not be easy, but it is possible. But once you put your passions and abilities together with the right kind of customers, you’ll be amazed by how easy it can be to carve out a profitable niche in this economy.

Once you those customers, the next step is to listen.

Rule #2 Only Create Value that Can’t Be Easily Copied

In the passion economy you can sell and distribute all over the world, but to protect value you should be careful not to produce value at scale. Creating value at large volume is something only huge companies can do profitability. Leave scale for mass market, the passion economy is about quality and the conversation you have with your clients.

Rule #3 The Price you Charge should Match the Value you Provide

Prices should drive costs, not the other way around.

Market prices are based on the idea that whatever it is you are selling is a commodity that is no better and no worse that what everyone else is selling. Your products and services should be unique. The price you charge comes from frequent discussions with your client.

Passion pricing is a service

Part of your expertise is the way your particular passion can add value to your customers’ lives.

Pay attention to BATNA

BATNA means best alternative to a negotiated agreement. If you are fully in the passion economy, you are offering something unique with no exact competitor.

Charge a lot and then earn it A good way to think about the passion economy is what if you doubled your prices or rates. This forces you to start imagining what you need to do to deserve twice as much.

Realize that your pay may come in things other than money the work allows you to enjoy life better.

The price you charge should change constantly The world is in constant change, as time goes on through evaluating price you are forced to examine the products and services you provide, the value they bring to the people who pay you for them, and the potential customers who might value them even more.

The price you charge should feel good to you The world moved to standardized pricing was a central component of standardizing everything in the 21-century economy. In the passion economy, price is emotional. The entire point is to match your internal passions and skills with the specific needs and desires of a customer. The passion price is whatever you and a customer is right.

Pricing low is not a strategy One of the most common errors people make is finding out what the competition is charging and then pricing a bit lower. This is the wrong thing to do in the passion economy. It avoids asking the crucial question – what is the value I am creating that is beyond that of similar businesses or services, and who am I creating it for?

Pricing is your value Pricing should be at the very center of your business, your way of understanding your role in the world. Pricing is your value. Your should get full value.

Linking to dividend paying stocks, the economy is large and people can make money in many different ways, although most investors will invest in large companies, it is important to know how smaller companies make money. They are customers of the larger companies, the large companies know how to do volume and make profits. Large companies are wonderful at identifying trends in the economy and adapting to them and making money. Some of the brands you think are smaller companies are owned by large companies.

There are more questions than answers, till the next time – to raising questions.

President Trump likes to say America’s economy is the best ever, perhaps he meant to say China’s economy is the best ever.

In an article by Daisuke Wakabayashi of the New York Times News Service, another month, another trade surplus of more than $100 billion for China. According to the Chinese General Administration of Customs, the trade surplus in July was $112.5 billion. It is the 3rd straight month in which Chinese exports exceeded $100 billion.

The war in Iran increased oil and gas prices, which has helped spur demand for Chinese electric vehicles and renewable products such as solar cells.

Chinese manufacturers hurt by overcapacity and relentless prices competition has sought growth aboard by inundating overseas markets with low-cost goods.

The growth in exports has helped stabilize the country’s finances as domestically, there is a persistent weakness in the domestic economy. Chines exports are benefiting from the global spending for artificial intelligence.

When President Trump imposed tariffs, everyone believed that would hurt Chinese manufacturing of exports. Oil exports increased 22% from June but are down 25% from a year earlier. The Chinese have tapped into their stockpile of oil and have done a super job in reducing the use of fossil fuels.

Linking to dividend paying stocks, when you buy into these companies you expect some diversification of income streams which allows profits to be made no matter the economic cycle. Diversification is a good thing.

There are more questions than answers, till the next time – to raising questions.

When President Trump began his second term, he turned to Elon Musk and the DOGE committee to cut costs. It turns out cutting costs in government is generally much harder than it is in the private sector. The reason being government is expected to do some things, in private business if a company wants to end a business line, they can and do. When companies do not make enough profits, they bring in a cost cutter as the CEO.

In an article from Reuters, Diageo new CEO Dave Lewis unveiled a $1 billion cost cutting plan, saying the world’s top spirits maker must adapt to a prolonged period of weak growth.

Diageo controls liquor brands such as Johnie Walker whiskey, Guinness beer, Smirnoff vodka, Captain Morgan rum. Baileys Irish creq liqueur and a host of others.

Mr. Lewis is nicknamed Drastic Dave for his history of cost cutting at Tesco and Unilever.

The cost cutting is expected to take 3 years and includes and cutting back on capacity for growth than never materialized. The North American spirits market is expected to decline next year, stabilize in 2 years and growth thereafter.

Linking to dividend paying stocks, if a company is not growing then it needs to cut costs. Investors want to invest in companies than can and do grow, otherwise the stock trades at a lower multiple. The company can still make money, it is just not making as much, which leads to investors asking are their better alternatives? Do you want to exit or cut a position, put the company on your watchlist and wait for a couple of years to raise your holdings? Only time will tell if that is a good idea, but it is always worth asking.

There are more questions than answers, till the next time – to raising questions.

As an individual investor you should have some diversification in your portfolio and eventually it is good that the companies you own have diversification because if one sector is not doing as well, another one will do better. In addition, governments pass laws and some are good and some are not helpful.

In an article by Michelle Chapman of the Associated Press, Walt Disney reported solid quarter. The company had a blockbuster movie in Toy Story 5 (it appeals to both adults and kids) and US theme parks were a strong draw of domestic users.

In the government not helping, President Trump’s tariff and immigration policies has meant international tourism is down and they have been a good portion of visitors to Disney’s theme parks. The company had to pivot and offer more summer promotions which has increased US visitors and people who have annual passes are coming more.

The Experience division, which includes Disney’s 6 global theme parks, its cruise line, merchandise and video game licensing, reported operating income up 20% tp $3.02 billion and revenue totaled $9.97 billion. Operating income rose 27% at domestic parks, while operating income declined 13% for international parks and experiences.

Toy Story 5 pulled in $1 billion in the box office globally. After people saw Toy Story 1,2,3 and 4 and bought more merchandise which helped the consumer products division.

Revenue streaming business which includes Disney + and Hulu climbed 11% to $5.53 billion. The combination of adding more subscribers, price increases and higher advertising revenue.

Linking to dividend paying stocks, when government policies are not helpful, companies have to pivot, change and investors expect larger organizations to do this. How well they do, is the reason to hold onto the stock or look for alternatives. Disney lost some international tourists but picked up domestic tourists, which was good.

There are more questions than answers, till the next time – to raising questions.

As an investor in a commodity based business, you are always have two aspects, if the commodity price increases the companies make more money, as a consumer you like to pay less. If you can make more money than you spend on the commodity it is a bonus. We saw gold prices jump as Central Banks around the world increased their gold holdings. With the war in Iran and the Strait of Hormuz being shut more than it is open, the supply of crude going to the Far East went down or prices went up. For the companies that are in the business, higher prices are the result and very often once those prices go higher, they always seem to come down slower.

In an article from the Associated Press, the biggest names in the oil and gas business reported their quarterly earnings and profits are up, a lot. Profits at BP doubled to $3.9 billion. Saudi Aramco reported a 44% increase in net profit to $32.69 billion. ExxonMobil profits double to $14 billion, Chevron reported quadrupled to $12 billion.

Shares of major oil companies are up around 20% this year and Wall Street analysts have increased expected share prices.

When big oil companies make more money, it draws the ire of politicians including President Trump who said he is not happy with ExxonMobil and Chevron’s results. President Trump wants them to cut gasoline prices, but the problem is the Strait of Hormuz and the flow of oil and gas. Will the President Trump subsidize big oil to lower gas prices? If not, there is a solution.

Linking to dividend paying stocks, when commodity prices rise, there is money to be made in the sector. The trick is to be in the sector when prices are low and allow the cycle to raise prices. If the companies pay a dividend, you can collect the dividend while you wait for prices to rise and then sell some of your holdings or rebalance them when prices are high and look for the other commodity based companies.

There are more questions than answers, till the next time – to raising questions.

Every country has their own currency, and it has been part of being an independent country. That is the good thing, the bad thing is the currency now trades relative to other currencies. Whatever product and services the country trades most with, the currency will be linked to it. For example, many of Australia’s raw materials goes to China, which means if the Chinese currency is higher, Australia’s currency is enhanced. There are other countries that depend on money sent back from citizens abroad.

When a currency trades, there will always be some currency traders who believe the economy will do well and others who believe the economy is not doing so good. Similar to stock trades – there will be those that are long and those that are short. A government is always biased their economy is doing well and it takes drastic actions before the government changes it view. Currency traders pay attention to the economy, but governments have measures try to prop up the currency.

The classic example is when George Soros shorted the English Pound, the government of the UK poured billions to try to prop up the Pound, but the economy was weak and interest rates were raised and George Soros made billions. A few months later he lost money on an Asian trade gone wrong.

In an article by Rae Wee and Ankur Banerjee of Reuters, the Japanese economy is weaker in part because of the Iran war made oil and gas prices higher. Japan imports 90% plus of its oil and gas. The Japanese money is called a yen.

The thing that makes this particular situation a little different is the Bank of Japan has spent $70 billion to try to prop up the yen in late April and early May. The US Treasury Department under Secretary Bessent is helping prop up the yen. Secretary Bessent was a currency trader with George Soros fund, prior to coming to the White House.

Mr. Bessent has been explicit about concerns regarding yen weaknesses, lending greater creditability to the prospect of sustainable yen strength, noted Carol Lye, portfolio manager at BGIM, a unit of Franklin Templeton.

Mr. Bessent has said that the US would consider increasing the size of the Federal Reserve’s repurchase facility called FIMA. The Treasury Department’s most recent currency report said the yen was undervalued and excess volatility in the currency’s trading was undesirable.

Currency analysts said the US used its holdings of euros to buy yen, bolstering its value without shaking confidence in the dollar. Secretary Bessent said it is important to have a stable yen. It is important to note Japan is one of the largest holders of US debt.

The Japanese Central Bank is looking at raising interest rates in September.

Linking to dividend paying stocks, many times these companies are global which is great thing. However, being global means there is a currency risk of what sort or another. For your investments, how much is the currency risk?

There are more questions than answers, till the next time – to raising questions.

If you move to leadership positions, you have to determine how you lead and what your values and ethics are beside to have and keep power. There are many writers and one of the most famous is Machiavelli’s The Prince. It is very easy to read or buy a copy and How to seize power. How to build on to power are things you need to learn. You may not use all the lessons, but those in power are very often not eager to let go of the power, particularly when you control vast assets. If you are involved in organizations that have less than $15,000, seizing and holding onto power often means showing up. The responsibility is there because someone needs to do it.

In a book called Machiavelli for Women by Stacey Vanek Smith, published by Gallery Books, NY, 2021, the author outlines some areas where it is important to incorporate Machiavelli’s ideas.

It should be note Machiavelli was essentially in the foreign service of a city state Florence when Italy was a series of city states. Naturally with city states, there are always those that gain power and want to expand it, and Machiavelli was trying to use his wits to keep Florence independent. Machieavelli career had its highs and lows, and one of its lows was he was exciled from the city and that is when he was able to reflect and write a story of how to gain and keep power.

Ms. Smith agrees the workplace is not fair, never has been, and you should take the lay of the land, identify the obstacles and look for ways forward.

There are 2 types of Princes – the ones that inherit and the ones that take control of the kingdom by conquest. It is the same in the business world. The ones who inherit the company are generally known to the people in the company. For the princes that conquer, it is tricky position, the prince has the power but who supports him? how does he gain support to keep the power?

Some lessons:

1. every job tends to have a band range for the salary, in general women have tend to be at the bottom or below the midrange; men were paid above the midrange. After a few years, the difference in salary begins to add up. Women should ask to be paid at or near the top range during their performance reviews.
2. every job has responsibilities the employer is looking for. Women tend to want to be competent close to 100%, men in general believe that 60% is okay and they will grow into the job.
3. in every negotiation – confidence is key. Practice it and show confidence and you will be seen.
4. most of service work is about ideas and gaining resources to implement them. How do your present your ideas and gain funding for it? Are you a mentor; part of a support network? understand how the process works.
5. you may love your job and the company, but if they are underpaying and undervaluing you, build a nest egg or emergency fund, so you can have more options. Moving to a new company – start up or competitor.
6. the book has more information and is worth reading.

Linking to dividend paying stocks, when you own these companies one of your responsibilities is to vote as a shareholder. Many times, the motions pass overwhelming but every once in a while, your vote counts because the vote is close.You are evaluating leadership and whether you want the person to hold onto power or vote him out. You use Machiavelli’s principles all the time, you just do not call them that.

There are more questions than answers, till the next time – to raising questions.

When President Trump imposed tariffs, one of his rationalizations was the other country was going to pay for it. It was also supposed to encourage companies to bring back manufacturing back into the US. If you believe him, maybe the next story will change your mind.

In an article by Tara Deschamps of the Canadian Press, there is a company in Montreal called Gildan Activewear. If you shop at Walmart or many other stores, you might have seen the brands Hanes, American Apparel and Playtex for undershirts and undergarments. The company specializes in these garments and has factories around the world, but remarkably few in the US.

President Trump imposed the tariffs by executive order on an emergency basis and was sued. The court heard the case and decided that all tariff money collected had to be sent back to whoever paid the bills.

As many people know, the company that imports the item pays the tariff. The company has the option to increase prices to cover the tariffs, absorb the tariff and there are multiple combinations of what they can do, but they pay the tariff.

Gildan estimated they will receive $220 million back from the US Government and it is unlikely to be passed along to customers because the company did not hike the price as high as it could have (it absorbed some of the costs), when tariffs were invoked at the same time as its costs were rising.

The price of cotton, energy has gone up, so there is lot of structural inflation still in the environment.

The CEO of Gildan, Glen Chamandy said a significant portion of tariff refund will be reinvested in the business to build the company’s brands, market them and accelerate product innovation and packaging enhancements.

Linking to dividend paying stocks, if an individual won money in the lottery they have some choices – pay down debt, buy new assets, save for the future or giveaway the money. Companies do the same thing, if you were a shareholder, you hope they beside invest in the business give shareholders a one-time bonus. However, ensuring the company long term future is very important.

There are more questions than answers, till the next time – to raising questions.

In the US almost every Tuesday until the midterms tends to mean somewhere there is a political vote – to who will run for each party and then finally in the November midterms. After that, depending on the results, the campaign for the Presidency will heat up as President Trump second term will end. In the meantime, the economy or pocketbook issues or affordability is one of the key issues.

In an article by Paul Wiseman of the Associated Press, key economic measures are reported quarterly by the Commerce Department and growth is running at 1.5%. Growth in the US GDP (gross domestic product) decelerated from 2.1% in the first 3 months of 2026 to 1.5%. Consumer spending which accounts for 70% of economic activity increased to 3.2%, up 0.5%.

Business investment excluding housing rose at 8.4% down from 10.6%, but still strong thanks to the AI investments.

Imports rose at 11.5%, once again thanks to computer chips and other AI investments.

Olu Sonola, head of US economics at Fitch Ratings noted AI investments remains a powerful growth story, but the import surge underpinning the buildout is a reminder that an AI boom does not automatically translate into an equally large boost to the US GDP.

The Commerce Department said its Personal Consumption Expenditures (PCE) rose 3.7%, down from 4.1%.

The American economy has been surprisingly resilient in the face of the Iran war and the spick in energy prices it caused. The job market bounced back this year from a lackluster 2025, giving consumers the wherewithal to spend.

Linking to dividend paying stocks, we all have a bias and bias tends to be country and regional based or we picked stocks what we are located. Since that is a bias, examining how the US economy and in particular what part where your stocks are concentrated allows you to determine how the companies should be doing. There is nothing wrong with a bias, just understand you have one and adjust your investments accordingly in terms of how much diversification you have or want to have.

There are more questions than answers, till the next time – to raising questions.