Freedom’s Just the ONLY Word

The great Kris Kristofferson has written many classic songs, including the iconic road-trip anthem, “Me and Bobby McGee,” a song made famous by the sultry and gravelly voice of Janis Joplin. The most memorable lyric in the song is the following, “Freedom’s just another word for nothin’ left to lose.”

As beautiful a lyric as that is, I must disagree with the sentiment. To me, freedom isn’t just another word for anything. And it’s most definitely NOT just another word for nothing left to lose. So, if I may be so seditious to the music gods, I will offer my alteration of this lyric based on what freedom really means:

“Freedom’s just the ONLY word we can’t afford to lose.”

Now, given my penchant for freedom and what it means to me, I only wish there was an annual gathering of free minds that I could interact with over the course of several days that could supply me with the spiritual fuel and arm me with the intellectual ammunition I need to battle the anti-freedom forces all around us.

Oh, wait, there is such a gathering?

I jest, of course, because long-time readers know that I am referring here to FreedomFest, the world’s largest gathering of free minds. This year’s event is just a fortnight away, and the theme is “The Soul of Liberty,” a theme that I really love. The reason why is that my conception of “soul” is one that exists free of coercion, free of servitude and one imbued with libertarian freewill.

As the brilliant novelist/philosopher Ayn Rand wrote in “Atlas Shrugged,” “As man is a being of self-made wealth, so he is a being of self-made soul.” Indeed, I think we are beings of self-made soul, but in order for that soul to prosper, we require the freedom to choose. Yet as Ronald Reagan once warned, “Freedom is a fragile thing and is never more than one generation away from extinction.”

Now, while freedom is a beautiful concept, it’s also one under constant assault.

Anti-freedom, authoritarian forces on both extremes of the political and philosophic spectrum actually abhor the notion of liberty, as free minds thinking for themselves are viewed as a threat to their ability to impose control. And guess what, they are right.

Free-thinking humans are always a threat to wannabe demagogues, would-be dictators, authoritarians, nationalist movements or any other stripe of collectivism intent on telling you that they know what’s in your best interest and how you should live better than you do.

I reject this concept, and I do so by assuming the responsibility of thinking for myself. And, knowing that I have the responsibility of thinking for myself is why I love FreedomFest.

You see, in order to come to rational decisions about the world, one must be exposed to the best ideas. Moreover, one must also be exposed to ideas that one may disagree with, because it is only through carefully weighing opposing views that you can truly understand and properly defend your own views. And at FreedomFest, there are many opposing views presented, which is one of the reasons why I love it.

For example, one of the featured speakers last year was businessman and former Democratic presidential candidate Andrew Yang. Now, I wouldn’t vote for Andrew Yang, as we have very different views on politics and the role government should play in our lives.

Your editor exchanges ideas over libations with Andrew Yang at FreedomFest 2022.

Yang wants to provide everyone with a “universal basic income,” and I want to provide everyone with “universal basic reason.” Still, Yang was offered a platform at FreedomFest to talk about his new project, the Forward Party. Here is an area of agreement I do share with Yang, as the new party’s motto is “Not Left. Not Right. Forward.”

This year’s keynote speaker at FreedomFest is a man who my friend, colleague and FreedomFest founder Mark Skousen calls, “the man who has restored his faith in America.”

That man is Mike Rowe, executive producer of such TV series as “Dirty Jobs,” “Somebody’s Gotta Do It,” “How America Works” and “The Story Behind the Story.” Mike also is the author of the New York Times bestseller, “The Way I Heard It,” and he’s also a podcaster extraordinaire.

One reason why both Mark and I really like Mike Rowe is that he brings Americans together. Here’s a man who can comfortably talk with Chris Cuomo on NewsNation (and CNN before that) and Tucker Carlson on Fox News. Now, how rare is that!

I’m really looking forward to hearing Mike’s message about how he is making a difference in reinvigorating America’s work ethic through his mikeroweWORKS Foundation. I’m also looking forward to sampling some of Mike’s Knobel Tennessee Whiskey, as his sample offerings will no doubt result in one of the most popular booths at the Memphis bash.

Of course, Mike Rowe is only one of the many fantastic speakers already inked for FreedomFest. The lineup also includes Steve Forbes, John Fund (National Review), Steve Moore (Heritage Foundation), Tulsi Gabbard (a former Democratic congresswoman), Michael Shermer (Skeptic magazine), Enes “Freedom” Kanter (a former NBA basketball player), David Boaz (Cato Institute), Bryan Kaplan (GMU), Douglas Brinkley (“America’s Historian”), Grover Norquist (Americans for Tax Reform), Art Laffer (famed economist), Richard Epstein (New York University law professor), Amity Shlaes (historian), Magette Wade, Barbara Kolm (VP of the Austrian central bank) and many more. Go here for the full lineup.

Returning as master of ceremonies is Lisa Kennedy, host of Fox Business, along with my most excellent friend and cohost, the sublime Heather Wagenhals. There’s the Anthem film festival, a libertarian comedy festival and a full three-day investment conference, including such financial gurus as Alexander Green (Oxford Club), Louis Navellier and David Bahnsen. Plus, there will be a special interview with Jeremy Siegel, the “Wizard of Wharton,” and Burt Malkiel (Princeton).

There’s even a FreedomFest “jam session” where musically inclined attendees can go on stage and play music together. And here’s a bit of breaking news, your editor will be there playing and performing, too, and you may even hear a few original songs from my upcoming album, “Tender Warrior.”

And last but definitely not least, my fellow financial editors at Eagle Publishing will be at FreedomFest — including Bryan Perry, George Gilder, Roger Michalski, Paul Dykewicz — and of course, Mark Skousen.

The full agenda — speakers, panels, debates and breakout sessions — is now posted online. Go to www.freedomfest.com/agenda to check it out. I guarantee you will be impressed. You can also click on the name of each presenter to see when and on what topic they will be speaking. Click here to find out more.

When registering, use the code EAGLE50 to receive a discount. I hope to see you at FreedomFest in “Music City,” Memphis, Tennessee, July 12-15, because after all, freedom’s not just another word, it’s the ONLY word we can’t afford to lose!

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ETF Talk: The ‘i’s’ Have it, and It’s Not All About Size

Contrary to juvenile jokes everywhere, sometimes the best things come in small packages.

Caviar, Cognac and, most relevant to this e-letter, small-cap exchange-traded funds (ETFs). (Not that you can’t enjoy the other two while reading this e-letter.)

So, as the Federal Open Market Committee struggles with some larger issues at present, let’s dive into the advantages of small-cap ETFs. These ETFs allow an individual to purchase a diversified portfolio of smaller companies at a reasonable price. Further, instead of doing extensive research into one small company, small-cap ETFs do the work for you and can offer exposure to multiple small companies in a broader portfolio. Often, these ETFs can generate high returns as they grow and become larger businesses.

Now, let’s get down to business and explore why the “i’s” have it, and it’s certainly not all about size when talking about the iShares Russell 2000 Value ETF (IWN). IWM is a passively managed ETF that provides broad exposure to the Small-Cap Value segment of the U.S. equity market. In fact, its wide array of holdings makes it one of the most diversified funds in the segment.

As a noteworthy aside, IWM does indeed dip its toe into micro-cap territory, which can make it a bit of a riskier play. But micro-cap stocks are a valid and potentially appealing approach to small-caps. With this said, IWM is on par with its counterparts on all other fronts, and its varied approach may be of intrigue to interested investors.

Unlike other ETFs in this space, IWN has amassed assets of over $11.18 billion, making it one of the largest ETFs attempting to match the Small-Cap Value segment. Created in late 2000 and sponsored by Blackrock, IWM, as of this writing, allows investors access to 2,015 small-cap domestic stocks in a single fund. The ETF can be useful for investors looking to diversify their U.S. value stock allocations and generate long-term portfolio growth.

According to Zacks Investment Research, Inc., IWM has a Rank of 1 — making it a Strong Buy. The ETF’s ranking is based on expected asset class, return, expense ratio and momentum, along with other factors. Nasdaq.com calls IWN “an excellent option for investors seeking exposure to the Small-Cap Value segment.”

IWM has net assets of $48.91 billion and a weighted market cap of $2.98 billion. Furthermore, it has a 12-month trailing dividend yield of 2.24% and an expense ratio of 0.19%, which makes it reasonably priced for its strong potential upside.

Courtesy of stockcharts.com

As is apparent from the chart above, IWM is no less vulnerable to market volatility than any other fund or stock. However, as it is so broadly diversified, IWM has had the strength to move out of any serious downward spikes. Currently, the fund is trading above its 50- and 200-day moving averages. Furthermore, it has an appealing median daily volume of $5.37 billion.

IWM’s heaviest holding allocation is in the financial sector, making up about 25% of its portfolio, with Healthcare and Industrials helping to round out its top three holdings’ categories.

Its top 10 holdings account for roughly 4.97% of its total assets under management and include Super Micro Computer, Inc. (SMCI), 0.47%; ShockWave Medical, Inc. (SWAV), 0.44%; Inspire Medical Systems, Inc. (INSP), 0.37%; Apellis Pharmaceuticals, Inc. (APLS), 0.36%; EMCOR Group, Inc. (EME), 0.35%; Saia, Inc. (SAIA), 0.34%; Iridium Communications, Inc. (IRDM), 0.34%; Karuna Therapeutics, Inc. (KRTX), 0.33%; Texas Roadhouse, Inc. (TXRH), 0.32%; and Celsius Holdings, Inc. (CELH), 0.31%.

In summary, the iShares Russell 2000 Value ETF is one of the largest ETFs in its space. It offers interested investors great exposure to a broad range of small-cap U.S. companies and can potentially generate long-term profits. While there is risk with investing in small-cap ETFs, any good investor knows that where there is risk, there is reward.

As usual, interested investors should conduct their due diligence and decide whether the fund is suitable for individual investing goals. And as T.E. Lawrence, a.k.a. “Lawrence of Arabia,” once said, “Big things often have small beginnings.”

I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You may just see your question answered in a future ETF Talk.

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In case you missed it…

My Very Own Watergate Connection

Over the past year, there’s been renewed interest in “Watergate.” Perhaps it’s because of the recent scandals in Washington, or perhaps it’s that our polarized nation is now fascinated with political intrigue. Whatever the reason, proof of the newfound fascination with Watergate can be seen in the recent airing of two TV series that explore this fascinating episode in American political history.

The first series was the May 2022 drama, “Gaslit,” starring Sean Penn and Julia Roberts. I very much enjoyed this Watergate series, as the story centered around Martha Mitchell, the outspoken wife of Nixon administration Attorney General John Mitchell. In May of this year, HBO released “White House Plumbers,” a five-part series starring Woody Harrelson and Justin Theroux that tells the story of how Watergate masterminds, E. Howard Hunt and G. Gordon Liddy, accidentally helped topple the Nixon presidency.

I have yet to watch “White House Plumbers,” but it’s on my to-do list, as I am one of the many Americans fascinated with Watergate and its colorful characters. Yet, my fascination with Watergate isn’t recent. In fact, I have a long, personal history with this subject, one that includes a direct connection to the head “plumber,” G. Gordon Liddy.

In March 2021, I wrote about that connection in this column, largely in memory of a most fascinating man whose life and work fanned a nascent flame of intensity in my youthful soul. So today, I present you that article, because if you are as interested in Watergate as the public seems to be, then I think you’ll also be interested in my very own Watergate connection.

The Influence of an Unlikely Hero

As a youth open to the world’s influence, you never know what will captivate your interest, and what will lead you to the paths you take in life.

It was August 1974 when I, along with the rest of the world, watched then-President Nixon resign from his office in disgrace. And while I was only 10 years old, thinking about that event brings me right back to the Southern California suburban home where I grew up, and right to the scene of my family watching our RCA console TV and, astonished, taking in the historic moment.

A few years later, I began to read about this still-fresh historical wound on society, and I started exploring the reasons why the president had resigned (rather than undergoing the indignity of being impeached and removed from office). At the heart of that resignation was, of all things, a burglary. Specifically, it was one of the most famous burglaries in American history, the crime known as the Watergate burglary.

In reading about Watergate, one quickly comes to learn the name G. Gordon Liddy.

Gordon Liddy was one of the key figures in the scandal, because he was the person who basically organized, planned and sent his team of former intelligence industry operatives into the Watergate complex to bug the Democratic Party headquarters in June 1972.

On March 30, 2021, George Gordon Battle Liddy died. He was 90 years old.

So, what’s so important about G. Gordon Liddy, and why am I writing about him today?

Well, because G. Gordon Liddy helped shape my mind. He also helped me forge my own will, and he helped me become the man I am today. Let me explain.

In 1976, “Will: The Autobiography of G. Gordon Liddy” was published. My father told me that he heard that the book was very interesting, so he purchased it for himself. But I had the habit of beating my father to the punch when it came to reading, so I grabbed his copy of “Will” and read it before he had the chance.

This book was a huge eye opener for me. Not only was it a fascinating tale of politics and intrigue during that time, it also was the story of how G. Gordon Liddy took control of his own destiny and basically created the man he would become (for better or for worse).

As I read Liddy’s book, I was mesmerized by the story of his personal transformation “from a puny, fearful boy to a strong, fearless man,” as he writes it. This transformation took place via a regime of intense exercise and physical bravado, including capturing, killing and then eating rats. He did this to overcome his fear of rats, so that now, the rats would fear him!

This overcoming of fear really resonated with me as a youth, and I sought out to do the same thing in my life. No, I never ate a rat, but I did decide to confront the local bully at my junior high after reading Liddy’s book. Although this bully was substantially larger than me, he crumbled when I punched him in his ugly mouth. Yes, I can still picture the bloody, busted lip and the tears on his cowardly face. From then on, he feared me.

Fast forward some 14 years, after high school, after college and just as I was leaving the U.S. Army, I had the pleasure of not only meeting G. Gordon Liddy, but of also actually working alongside the man.

Liddy was setting up an academy where he would train security people in executive protection, firearms, military and intelligence operations and hand-to-hand combat. Through some mutual acquaintances, I was brought to Liddy’s attention to see if I could help with the project as one of the instructors.

Your youthful editor with Watergate icon G. Gordon Liddy.

The photo here was my first meeting with “Gordon,” as he liked to be called. One of the most interesting conversations we had was about a project he planned to call “Hurricane Force.” It was to be a private security force made up of former special operations personnel, and it would conduct operations such as child kidnapping recoveries and other “high-risk ops” where law enforcement wouldn’t or couldn’t intervene.

I never participated in Hurricane Force, and I don’t really know if anything came of it. But just the idea of being considered for a private special ops force was supremely interesting to me, especially when talking to G. Gordon Liddy about it over drinks at a Miami hotel.

The more important takeaway here is that in life, sometimes you are influenced by an unlikely hero. Sometimes that hero is less than 100% good. After all, Liddy’s attempted subversion of the 1972 election is not something I endorse. And I don’t endorse criminal behavior such as burglaries, or break-ins or any of the other crimes Liddy was convicted of.

I do, however, endorse the man’s mindset, which cultivated an iron will strong enough to abide by principles in life, principles that Liddy would not abandon even at the price of going to prison.

Sure, he could have testified against his co-conspirators and likely gotten a much-reduced sentence, or no sentence at all, for his role in the Watergate burglary. But what he chose to do was live by his convictions, convictions that told him if you engage in an operation with others, you never give up those others just to save your own tail.

Stated more colloquially, you never “rat” on your friends. Instead, you eat the rat, and make him fear you.

R.I.P., Gordon, your influence will remain with me always.

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Voltaire on Fools

“It is difficult to free fools from the chains they revere.”

–Voltaire

There are millions of ideas vying for our attention, and many of those ideas are really harmful. Many also are accepted as true without even any real self-reflection. Unfortunately, many bad ideas are the sort that impose intellectual or spiritual chains on us.

To this, I say — have the courage and the fortitude to wage war on those ideas and to break free of those chains. Let your mind run and allow yourself to assume the immense but rewarding responsibility of thinking for yourself. Much more happiness, truth, beauty and wisdom will come to you that way.

Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. Click here to ask Jim.

In the name of the best within us,

Jim Woods