Contrarian Investing on Daylight Savings

by User Submitted

Submitted by LoS Reader “Matthias”

This weekend, per decree of our government, we all have “sprung forward” into “Daylight Savings Time”. One hour was taken from our schedule, that could have been spent on any sort of profitable or enjoyable activity. What did we get in return? A government IOU; a promise that this hour will be returned in six months time. Without interest.

Clearly, Congress is trying to push the American public into a ridiculous bargain. We could die in the coming six months, never to receive that hour back, or we could be getting the cold next fall, which would make the hour that much more un-enjoyable. And even if we subscribe to the notion of a risk-free government obligation, the time we are fronting the government should at least bear interest at the appropriate 6-month treasury rate. For the conspiracy theorists: Does anyone know, what the government does with the 300 million hours, that are being temproarily extracted from the lives of the American public? Is it the chronological fuel supply used to keep Dick Cheney’s cyborg heart running and provide him immortality?

Recommendation: With the entire country being in a short position of 1 hour per person, I went the other way. I set my watch not forward, but BACK. I have tentatively set my watch back 23 hours, which intuitively balances risk and reward, but I am not certain of the appropriate hedge ratio.

Lastly, how much of the run-up in Phoenix’ real estate market do you attribute to Arizona’s exemption from the national Daylight Savings tax? The regulatory risk of Arizona joining the rest of the country at some point must be properly discounted.

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