By Bill Kelly, CEO, CAIA Association As the calendar turns to August we are in the waning weeks of summer in the northern hemisphere. Perhaps it is a good time to turn to the mailbag to see who has been doing what in this halcyon season… From Jerome in DC I feel like Michael Corleone in Godfather 3 when he said “just when I thought I was out, they pull me back in.” I tried to appease the markets and the Twitterer-in-chief, and to also come out the other side with some dignity and respect. Alas, I likely failed across the board. When it comes to future cuts, I should have opted for the Irish Goodbye as I now fear that I will truly be on the beach for longer that I had planned! PS Diversification is still the free lunch that you should be packing, as this season will eventually end. From Elizabeth in Massachusetts I am having a great summer especially in the early polls. If you see Steve, David, Leon or any of the other guys, tell them I said hello, and that the pejorative barbarian at their gate is now going to be me! From Jay in DC The very best summer beach read is my recently released 1,300-plus-page Reg BI. It is truly a page-turner and weighs in at over 13 pounds, so you may need a bigger beach bag. Take your time getting through it though as the first mutual fund in the US is almost 100 years old and we have certainly been in no rush to take a firm stance on putting the client interests first. In fact, Reg BI doesn’t even require you to eliminate conflicts… just disclose those pesky things and you are good to go. From the Capitalists at Element Capital in NYC 2-and-20 may fly on the Jersey Shore, but that is pedestrian on the eastern end of Long Island! 2-and-40 is our new motto and if you don’t like it, take your capital back; in fact, if enough of our errrrr “clients” don’t, we will send it back anyway. PS if this truly is sustainable alpha, it could still be worth the price of admission. From Gov Matt Bevin in Kentucky Fiscal responsibility sometimes means looking at the liability side of the balance sheet. Rest assured this is no day at the beach as 118 quasi-government agencies can now leave the State retirement system and fend mostly for themselves when it comes to their planning via a more garden variety defined contribution plan. I will certainly be trading in my bathing suit for a lawsuit as I prepare for a nuclear winter. From the US House of Representatives in DC Hey, if you see Gov Bevin, tell him to have another shot of that good old Kentucky bourbon and chill out. Liabilities are so overrated, and in fact the PBGC deficit is now at $54 billion, which is only up about 73 times where it was about a dozen years ago. It’s all good and we are going to extend our holiday; it is exhilarating, and almost feels like flying our seaplane out across open water and turning back only after more than half our gas has been consumed… let’s go! From the CAIA Association in Amherst Seek diversification, education, and know your risk tolerance. Investing is for the long term. Bill Kelly is the CEO of CAIA Association and a frequent contributor to Portfolio for the Future. Follow Bill on LinkedIn and Twitter.