"Economic measures better, but don’t overlook potential problems" by: John Sample

   I was absent across the pond last week playing golf in the southwest portion of Ireland. 
   I don’t know your feelings about global warming, but 85 degrees in Ireland is flat out hot for those people.
   Moreover, they rely on Mother Nature rather than an irrigation system to provide water for the grass. The courses were very dry and brown.
   I hate to say it, but it had a very Texas look to it. That makes it a quick transition into the announcement this morning that Texas was rated the No. 1 state for business in the U.S. as calculated by CNBC.
   It does not take much of an economist to note that oil prices have risen over 60 percent in the last year, climbing above $70 per barrel for West Texas Intermediate before settling above $65. 
   It was noted though that Texas is much more than oil these days. I see good times ahead, but you know how optimistic I remain. But you should be aware of the impact of a trade war on Texas being an export state.
   While I am waxing proudly about my home state, I wanted to let you know that your publisher celebrated his 50th reunion of graduating from Tivy High School in Kerrville. 
   I mention this as philosophical note that in life all is not earnings. I do believe that one of the greatest assets of the State of Texas is the quality of life and people in Texas. 
   I met your publisher when he moved to Kerrville and we became best friends which has lasted over the years. Moreover, we have been lucky that many of us in that class remain close and get together each year. 
   We have last some dear friends but we remain close. I just don’t think you can put a price on the quality of people. All it takes is to have been in corporate life and travel this country and realize what you have at home. The people of Texas is what makes Texas so great.
   The vast resources don’t hurt one little bit.
   This all to say that while so much has happened this year, the various equity indexes are basically just above where we started. I suppose you would say that this has been six months of a lot about nothing. . 
   In fact, most economic measures are far better than expected. One cannot however, overlook all the potential problems that are on the horizon.
   That wall of worry is real. I could go down the list and probably scare you but I find all these things as a balance against unbridled enthusiasm.
   Even at these levels you can still harvest values - just don’t be looking in the FANG arena.
   That group operates in its own environment and I would suggest to you that there are higher levels to come.
   I just got in to some earlier when prices were a little more realistic. 

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