“You have to love a nation that celebrates its Independence Day... with family picnics where kids throw Frisbees, the potato salad gets iffy, and the flies die from happiness."

Erma Bombeck, American humorist

Independence Day - A Short Primer

July 13, 2023

By the time you receive this letter most remnants of the July 4th holiday will have likely been put away. The streamers, banners, and red, white & blue clothing will be dutifully shelved until next year’s celebrations. Many will continue to fly their American flags and rejoice in that fact that summer is fully upon us.
For most, Independence Day consists of parades, family gatherings, and of course, fireworks – love ‘em or hate ‘em… many of our pets decidedly fall into the latter camp. Regardless of how you choose to observe the day, there are interesting facts surrounding the holiday that are largely misunderstood or completely unknown to the majority of Americans.

The July 4th holiday was originally sup-posed to be July 2nd, as the Continental Congress officially voted for independence from England on July 2nd, 1776. John Adams wrote: “The Second Day of July 1776, will be the most memorable in the History of America. I am apt to believe that it will be celebrated, by succeeding Generations, as the great anniversary Festival.” In the end, it was decided to celebrate it on July 4th since that was the day the Declaration of Independence was formally adopted. With this year’s holiday awkwardly falling on a Tuesday, it might be nice to simply celebrate it on the first Friday of July – but who are we to stand in the way of over 200 years of tradition.

Speaking of our Founding Fathers, in an ironic coincidence, signers John Adams and Thomas Jefferson died on July 4th, 1826. Not only did they pass away on the same day, but it was also the 50th anniversary of the Declaration of Independence. And just five years later James Monroe would also die on July 4th. On the less morbid side, though, President Calvin Coolidge was born on the holiday.

Many people enjoyed a day off on Tuesday the 4th, but that was not always the case. Massachusetts became the first state to declare Independence Day an official state holiday, but it wasn’t until 1941 that July 4th was declared a Federal holiday.

We all celebrate the 4th in slightly different ways, but one common thread seems to be fireworks and grilling. In regard to fire-works, the numbers are simply incredible. Americans spend more than $1 billion annually – with up to 75% of that around the July 4th holiday. I must not be pulling my weight, as most years I settle for a $29.99 variety pack from Walmart – needless to say my kids are underwhelmed. Luckily, our neighbors put on a pretty good show, and I do chip in for that, so it all equals out. The utmost caution must be used, however, as the 4th leads to 16,000 people being hospitalized with firework-related injuries. Light fuse and run!

When it comes to grilling, Americans also go all out for the holiday. It has been estimated that over 350 million hamburgers are eaten on the 4th, with Nevada leading the way for most per capita. I would not have guessed that, but Texas is second so that tracks. Approximately 150 million hot dogs are consumed on the 4th with West Virginia leading the way. Laid end to end they would stretch from the District of Columbia to Los Angeles more than five times.

Speaking of hot dogs and the 4th, I would be remiss if I did not mention Nathan’s Annual Hot Dog Eating Contest. For 50 years now this tradition has witnessed both men and women compete to see who can eat the most hot dogs - including buns - in 10 minutes. This year’s winner Joey Chestnut ate 62 in that short time span for his 8th consecutive victory. For this, he earned $10,000 and the coveted Mustard Belt. That’s a decent chunk of money, and I’m sure that belt is something to behold, but I can’t imagine the toll that must take on his body. And who would actually want to watch this in person?

Switching gears a bit away from the historical aspects of the holiday, there are also some interesting stock-market related tidbits surrounding the 4th. A study of the S&P 500 over the last 70 years showed that the 5 trading days preceding, and following, the holiday tended to be stronger than average. Maybe not enough to finance an awe-inspiring fireworks display, but enough of a bump to at least stay invested during that time.

Further, even though July has long been considered the “doldrums” of summer, lately the market has had its own thoughts. Over the past 10 years, July has actually been the best month for US stock performance, with the S&P 500 rising 3.3% on average according to an analysis from Goldman Sachs. Explanations vary, with some believing it may just be a statistical anomaly, and others opining that retail investors tend to be more active in the summer months – especially over the last decade with advances in technology making remote trading all the more accessible for the average investor.

Summer should be a time of relaxation and stress-free quality time with friends and family, and we fully understand that the stock market may be the last thing on your mind. Rest assured, though, doldrums or not, we will be watching your accounts dutifully each and every day so you can partake in whatever it is that makes your summer something special.

The article above is an excerpt from the Q3 Quarterly Market Commentary. Here is a link to the most recent issue. Complete the form below if you would like to get this emailed to you each quarter.

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