Weekly Market Report – December 7, 2023

Dec 7, 2023 | 0 comments

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Grow Omaha is proud to deliver this market report to you each week. This would not be possible without the support of our sponsor, Quantum Fiber!

Restaurant & Retail Updates

Scooter’s will hold a ribbon cutting December 22nd for its new store at 19225 Oakmont Drive in Gretna. That’s northwest of 192nd & Highway 370.

Wingstop plans to open a location in a former Panera space along 72nd Street at The Shoppes at MarketPointe in Papillion, according to The Lerner Company.

Macadoodles Fine Wine, Beer & Spirits plans to open its first Nebraska or Iowa store – fittingly – on St. Patrick’s Day, March 17th. The building is under construction northeast of 72nd & Grover Street. Macadoodles has 10 existing locations in Missouri and Arkansas.

Aldi plans to open a specialty grocery store in the 250,000 sq. ft. Settlers Creek development near 72nd & Cornhusker Road in Papillion, according to The Lerner Company and RED Development. Aldi will occupy a 20,000 sq. ft. space between Sam’s Club and Hobby Lobby. When it opens this spring, it will be Aldi’s 12th Nebraska location.

Chili Dawg’s Foods of Fire will open a second location in a 3,326 sq. ft. space at 11844 Standing Stone Drive in Gretna, according to Will Schneidewind of NAI NP Dodge. The Blair-based food retailer is known for hot sauces, grill seasonings and smokers.

Loess Hills Floral has opened a second store in the Waterloo area located in A View at West Shores, the same building that houses the new Salted Edge restaurant. The company’s original floral studio is located at 1010 South Main Street in Council Bluffs.

Reveal Salon & Spa has moved from its Maple Street location to 3309 Oak View Drive in the newly built-out Suite 101A. Clients enter the 1,700 sq. ft. space through the existing patio door.

A Casey’s convenience store and gas station is under construction northeast of 204th & Q Street next to a recently opened McDonald’s store.

Curly Salon leased Suite 316 at Cedarnole Shopping Center just south of 72nd & Dodge Street, according to Samantha Estivo and Jordan Estee of NAI NP Dodge, who represented the landlord in the 1,440 sq. ft. retail lease.

Hound HQ will open in mid-January next to Starbuck’s southwest of 156th & West Dodge Road. The locally owned business will provide dog daycare, overnight boarding and grooming services. The location will have two indoor play areas and two outdoor yards.

Action Burger, which recently replaced Burgerim at 225 North 12th Street in the Capitol District, now has a sign in the window, saying “Closed until further notice.”

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The “Restaurant & Retail Updates” section is sponsored by Anderson Convenience Market, featuring Quality AMOCO Fuels and serving Omaha since 1952, and proud to announce the return of Quality Amoco Fuels. Look for changes this Summer at Anderson Convenience Market – 8 Omaha area locations!

Learn more about Anderson Convenience market at www.Anderson1952.com

Grow Omaha Eats with
Sarah Baker Hansen

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Review: Ten years in to Tim Nicholson’s Boiler Room, the Old Market spot is as good as ever

By Sarah Baker Hansen

It’s hard to believe that the last time I sat down to review what has become one of my favorite restaurants in Omaha — The Boiler Room — it was 2016.

So much has happened since then, to diners, to chefs and to the Omaha restaurant scene. But one thing, at least when it comes to this review, remains the same: Since 2009, when it opened its doors, The Boiler Room has been one of the city’s most forward-thinking, consistently good, truly creative restaurants that we’ve ever seen as a food loving city.

It remains that today.

In 2016, and again in 2020, when I had a memorable pandemic-times dinner on the restaurant’s patio, I had praise for chef Tim Nicholson, who took over the kitchen in 2013 from Chef Paul Kulik.

I praised the seafood and the fresh fish, the house-made bread and charcuterie and the experience I said you wouldn’t find anywhere else: Where else, in fact, have you ever been able to order a pig’s head terrine? And then there’s the top-notch craft cocktail bar, the gorgeous dining room and the exceptional service, friendly but knowledgeable, proper but still comfortable.

All that remains the same, except for the menu. Because while much of what makes it so great stays the same at Boiler, the menu never does.

I am still thinking about Nicholson’s Yorkshire pudding, which was on the first plates menu one night, and which I don’t recall ever seeing on a fine dining menu in Omaha in the last decade.

The pastry, which had risen tall, had a tender, just-chewy finish. Inside its bowl-like center was a rich, seasonal filing which I was shocked to realize didn’t contain any meat. Instead, it was made of dates, gorgonzola cheese and smoked pecan, topped with tangy pickled mustard seeds, a vegan aioli and a rich mushroom demi glaze.

Large enough to be a main course, and certainly filling enough to be one, the dish had the kind of savory flavor and wonderful execution that made it an original. If it comes back, I will surely order it again.

Pork from T.D. Niche, out of Elk Creek, Neb., is some of the best in the state, hands down, and has long been a staple on the Boiler Room’s menu. Here, Nicholson took a pork chop from one of the farm’s heritage Berkshire hogs and served it simply and seasonally, with a mustard-spiked spaetzle (a Nicholson signature at this point), a puree of apple and black garlic, crisp sugar snap peas and sauce piquant, a spicy, tomato based Cajun reduction.

A piece of Morgan Ranch wagyu sirloin that same evening came served on a bed of toasted couscous with chunky roasted local carrots and mushrooms and a red romesco sauce made from poblano peppers and cashews.

Nicholson cooks protein to perfection. The beef arrived perfectly medium rare, the pork is always tender and juicy. And in my experience, the same goes for the fish on the Boiler Room’s menu, which is always flaky and light.

While the restaurant isn’t Italian, it knocks out some great homemade pastas, often with hearty bolognese or braised sugo sauces, which are just excellent.

Service at the restaurant is top-notch. The staff hits the right note between formality and friendliness. Their level of comfort makes the diner feel comfortable, too.

It’s no shock that the Boiler Room is expensive, particularly if you add a bottle of wine from their excellent cellar, which we did one night. It’s easy for the bill to quickly rise above $300. That’s why another night, we grabbed two seats at the bar and decided to try a more informal take on the dining experience, focused on cocktails and shared plates. This is a more affordable (though, admittedly, still north of $100) and casual way to experience the restaurant; one that I have enjoyed before and would again.

A simple, beautiful tartine, a sort of open faced, sliced sandwich, came served on tender homemade rosemary focaccia, topped with house bacon jam, gorgonzola cheese, small slices of orange, pickled shallots and a handful of local garden greens. Matthew said it was one of the favorite small bites he’d had at the restaurant perhaps ever; its balanced, tart-sweet tang, savory base and layered textures made it memorable.

Another small plate, a delicious pork merguez sausage, came served with bright green herb oil, carrot chutney, creamy hummus and a sprinkle of microgreens. The dish is colorful, flavorful, rich and light at once, and if it is still on the menu, this hearty sausage is worth a try.

When paired with a cheese plate — always a treat with the Boiler Room’s crusty, hearty bread — those two small plates were sizable enough to make a meal.

Often, I don’t recognize the cheeses on the list, but I aim for a soft, a medium and a hard cheese, and the staff always points a diner in the right direction. The candied nuts on the board are always a highlight.

Cocktails are great at the Boiler Room. Seasonal and original, they change the list several times a year, and this time of year, at least one is always served hot. A seat at the bar gives a diner the best focal points: The door (to see who is coming in and out), the dramatic stairwell, and both the lower and upper level dining rooms. It’s fantastic for people watching — and don’t worry about looking around. Everyone does it.

In my past reviews, dessert was sometimes where The Boiler Room experience fell short. But these visits ended with tender, fluffy macarons, profiteroles, rich bon bon chocolates and an excellent, towering chocolate cake served with dramatic black and white chocolate spears and a smooth, creamy scoop of cookies and cream.

Some restaurants age better than others. The Boiler Room is one that does. Nicholson hasn’t ever lost sight of the upscale French concept the restaurant originated with, but he’s confidently made it his own during the past decade.

It’s hard to hit the right balance between chic and cozy, fancy but hearty, new but familiar, and somehow, the restaurant executes that on each and every level: atmosphere, drinks, service and most of all, food.

The Boiler Room
https://www.boilerroomomaha.com/
1110 Jones St.
(402) 916-9274

Hours:
Tues – Thurs:
5:30p – 9p
Fri & Sat: 5:30p – 10p
Sun & Mon: CLOSED

Grow Omaha Eats with Sarah Baker Hansen is sponsored by Cheer Athletics, one of the largest and most respected All-Star cheerleading programs in the United States. The Omaha location is at 14620 Gold Coast Road, near Highway 370 and 144th Street. Learn more HERE!

The Big Story

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Photo Above: The Negatively Pressurized Conex training unit will be housed in the Infectious Diseases Air Transport Training Facility when the facility is completed. From left, Lt. Col. Elizabeth Schnaubelt, MD, Chris Kratochvil, MD, UNMC Chancellor Jeffrey P. Gold, MD, Maj. Tiffany Welsh, Bob Valentine, Maj. Felecia Craddieth, Maj. John McClain, MD.

Regents approve planning for Department of Defense training facility at UNMC

The University of Nebraska Board of Regents last Friday approved moving forward with planning for an infectious diseases air transport training facility at the University of Nebraska Medical Center.

The Infectious Diseases Air Transport Training Facility (IDAT) will be a new free-standing building on an existing UNMC parking lot on the south edge of the Omaha campus.

In collaboration with internationally recognized experts, the up to $20 million facility will establish biocontainment patient transport training to safely and effectively care for patients with high consequence infectious diseases.

“UNMC has a long history of partnering with the U.S. Department of Defense and other federal agencies to manage patients with high consequence infectious diseases,” said UNMC Chancellor Jeffrey Gold. “Our work was front and center during the 2014-2016 Ebola outbreak in West Africa when we cared for patients in our biocontainment unit. We have continued to serve our nation in regard to emergency preparedness and infectious diseases, and this training facility will further build our nation’s training capability.” \

Since its founding in 2018, the Air Force Center for Sustainment of Trauma and Readiness Skills (C-STARS) Omaha, has been a partner with UNMC’s Global Center for Health Security in planning, exercising and responding to high consequence infectious diseases events. C-STARS Omaha is a training program through the United States Air Force School of Aerospace Medicine or USAFSAM, in collaboration with the University of Nebraska Medical Center. USAFSAM is headquartered at Wright-Patterson Air Force Base in Dayton, Ohio, and is part of the Air Force Research Laboratory’s 711th Human Performance Wing.

Over the years, the partners have:

1. Evaluated the Transport Isolation System (TIS), first developed during the West Africa Ebola outbreak, to provide aeromedical evacuation for individuals exposed to or infected with high consequence infectious diseases;

2. Developed procedures and just-in-time training to support first operational missions of the TIS for COVID-19;

3. Collaborated with a team of teams on the development of the Negatively Pressurized Conex (NPC) and NPC-Lite for high capacity COVID-19 patient movement;

4. Evaluated use of the NPC/NPC-Lite for aeromedical evacuation of patients affected by high consequence infectious diseases.

Since then, a formal DoD Infectious Disease Aeromedical Transport (IDAT) course was proposed that includes a multidisciplinary team of Air Force instructor cadre to prepare personnel to safely transport patients affected by high consequence infectious diseases, and a training facility. C-STARS Omaha, in collaboration with the Global Center for Healthy Security on the UNMC/Nebraska Medicine campus, was selected for the IDAT course.

The planned training facility will include training spaces of different scales including a large space to house the C-130, C-17, NPC-Lite and NPC training units, as well as simulation classroom spaces for smaller activities. There could also be an administration element that would include office space, lounge, conference room and secure communications room.

Funding for this initial planning was provided by the Department of Defense.

“This facility will serve as a vital national asset, dedicated to providing essential training for safe and effective aeromedical evacuation in biocontainment,” said USAF Lt. Col. Elizabeth Schnaubelt, MD, director of C-STARS Omaha. “We are incredibly grateful for the collaboration and support of our Nebraska partners in this pioneering leap forward to ensure swift and secure transport of patients affected by high consequence infectious diseases while protecting our nation.”

“The IDAT facility will go beyond ‘just-in-time’ training and truly advance the readiness skills of federal health care workers to deliver safe and effective biocontainment care,” said Christopher Kratochvil, MD, vice chancellor for external relations. “As a national resource, it serves as a point of pride for Nebraskans knowing the critical role their medical center plays in national security issues.”

The Fiscal Year 2024 Defense Appropriations Act passed the House of Representatives in September and includes an additional $3 million in funding for the IDAT initiative.

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Grow Omaha Snippets

Grow Omaha Snippets Sponsored by:

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The University of Nebraska Medical Center’s outdoor ice skating rink will be open to the public December 8th through February 11th. The rink is located just east of 42nd Street, midway between Emile Street and Dewey Avenue, on the north side of the Michael F. Sorrell Center for Health Science Education.

The rink has undergone improvements since last skating season – many below the surface but contributing to some visible changes at the rink.

The 4-story, 90-room Fairfield by Marriott Hotel under construction at MH Landing northeast of 72nd & Grover Street is scheduled to open January 20th.

Dollar Tree has purchased the Blair 3 Theatres building at 1645 South Highway 30 in Blair, according to Brian Thomas of NAI NP Dodge, who represented the seller. The former 7,010 sq. ft. movie theater sold for $525,000.

The Omaha City Council on Tuesday approved the creation of the Little Bohemia Business Improvement District for part of an historic neighborhood along 13th Street south of downtown Omaha, according to the Omaha World-Herald.

The creation of the district will require owners of businesses within its boundaries to pay a special assessment of 90 cents for every $1,000 in their property valuation. The money is supposed to be used for such things as litter and weed control, banners and events to promote the neighborhood, holiday lights and signs for pedestrian safety, according to city documents. It has an initial budget of $24,500 a year.

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Omaha Car Care “We’ll be along for the ride.”

Business News

Local Business News Sponsored by FranNet of The Heartland:

Mead Lumber Company has purchased Component Manufacturing Company and Reaves Buildings of Sioux Falls, S.D. Component Manufacturing Company is a truss fabrication facility that manufactures trusses, wall panels and floor joists, and Reaves Buildings designs, builds and supplies engineered buildings. They have been servicing the upper Midwest since 1973.

Both businesses will continue to operate under the Component Manufacturing Company and Reaves Buildings names. Omaha-based Mead Lumber has 53 operating locations in Colorado, Kansas, Iowa, Missouri, Montana, Nebraska, Oklahoma, South Dakota and Wyoming,

HDR is deepening its construction services and related expertise by acquiring Boston-based City Point Partners. Going forward, the firm will do business as HDR | City Point Partners.

The two firms have worked together on projects for several years. Most notably, they have collaborated on many Massachusetts Bay Transportation Authority projects. The acquired firm is a program management company specializing in project controls, public outreach, construction services and owner’s project management. Its team also has years of experience in higher education and municipal markets and was recognized as one of Boston Business Journal’s Best Places to Work.

Valmont Industries, Inc. has entered into an accelerated share repurchase agreement with Citibank, N.A. to repurchase $120 million of the company’s common stock. The ASR is entered into under Valmont’s previously announced share repurchase program.

The Sarpy County Chamber of Commerce will hold a ribbon cutting December 11th for SunMed at 9735 Giles Road in La Vista. SunMed is America’s largest brick-and-mortar CBD retail chain, selling a “premium hemp-based line of wellness products.”

Goshen Development and Disability Center has purchased a 2,320 sq. ft. office condo at 3306 North 190th Street, according to Chris Falcone of NAI NP Dodge, brokered the sale.

Veridian Credit Union has distributed $90,000 in grants to 24 organizations across Iowa and eastern Nebraska. The credit union awards Successful Financial Future Grants annually of up to $5,000 each to nonprofit organizations who address barriers to financial stability through financial literacy and employment readiness.

A recent Mutual of Omaha survey of consumers aged 60 and above who had yet to enroll in Medicare reveals most respondents are pessimistic about future health care expenses. Over half (56%) of those who plan to enroll in 2025 or earlier say they expect costs to go up compared to their preretirement costs, and 22% expect costs to stay the same. Those planning to enroll in 2026 or later are slightly more optimistic, with 47% expecting an increase in costs and 23% predicting costs will stay the same.

Ikea U.S. reported a record $6.3 billion in sales during fiscal year 2023, up 6.6 percent, according to The Hustle. The Swedish retailer’s response is to cut prices to retain customers and pay $54.5 million in bonuses to its U.S. workers.

This section is sponsored by FranNet of The Heartland, the local, trusted franchise experts. They are “in the business of helping you get into business!”

Grow Omaha University

Leadership & Sales Insights for Ambitious People

Compiled by Grow Omaha co-founder and sales trainer Jeff Beals.

Sponsored by Dundee Bank

LEADERSHIP & MANAGEMENT

Psychological safety is the ability to feel safe acknowledging failure, offering tough feedback, sharing unorthodox ideas and telling the truth without fearing retaliation. Only 26 percent of leaders create psychological safety for their teams, according to Harvard Business Review. Some leaders “fake” it, meaning they imply an atmosphere of psychological safety but their employees know it’s a ruse.

Here’s the number-one phrase successful people use that most people are afraid to say, according to CNBC: “I was wrong.”

Global English Editing shared 10 habits to start now to get ahead of everyone else in five years: 1. Set clear goals; 2. Continuous learning; 3. Prioritize health; 4. Build a strong network; 5. Cultivate gratitude; 6. Embrace failure; 7. Practice mindfulness; 8. Read regularly; 9. Be open to change; 10. Be consistent.

Wikipedia’s 25 most-read articles of 2023 include “J. Robert Oppenheimer,” “Deaths in 2023,” “2023 Cricket World Cup” and “India,” according to The Hustle. Topping the list is “ChatGPT,” with 49.5 million views.

Long Commutes – In 2019, one in 10 workers had an hour-long commute, while just 3 percent traveled more than 90 minutes, according to Fortune. The number of people commuting more than an hour fell to 7.7 percent in 2021, with average commutes down to 25.6 minutes from 27.6 minutes in 2019.

SALES

Some sales reps pull back on prospecting during the holidays. That’s a mistake. If you take the month of December off, you’re missing out on 8.3 percent of the calendar year. Your prospects are very busy now, so you’ll need to make more dials than usual to reach the same number of people.

Forty-four percent of recipients made at least one purchase last year based on a promotional email, according to Spotio.

BradBird gives you an edge when competing for customers. There are 40 modules, each a different topic. Modules include a video and matching workbook. It’s only $79 per month and group discounts are available. You can cancel at any time. If you’re an action-taker, click HERE and get started now!

WISDOM

“Every affluent father wishes he knew how to give to his children the hardships that made him rich.” – Robert Frost

Founded in 2006 right in the heart of Omaha’s Dundee community, Dundee Bank is all about local ownership, friendly customer service, and supporting the needs of our beloved community. With nearly 100% of your deposits going right back into our neighborhoods, Dundee Bank is committed to fueling growth, enabling loans, and fostering stability for you and your neighbors. So why not open an account at Dundee Bank and discover what it means to truly support local?

https://www.dundeebanking.com/

Did You Know?

Surprising Facts, Figures & Points of Pride That Make Omaha Unique

This section is sponsored by Lockbox Storage.

Did you know the University of Nebraska system consists of four campuses and that two of them – UNMC and UNO – are located in Omaha?

Did you know that in 1917, Father Flanagan rented an old boarding house for his first boys’ home? The original staff of two Sisters of Notre Dame left after several weeks because of the huge workload taking care of the boys.

Did you know the CHI Health Center Omaha has an arena capacity of 18,975 for certain types of events? The venue’s grand ballroom can accommodate nearly 2,700.

This section is sponsored by Lockbox Storage, an affiliate of Omaha-based McGregor Interests Inc. We provide storage solutions for all of your storage needs. Our facilities have full-time managers and bright lighting to provide superior security for your belongings. In addition to space for rent, we also provide packing supplies, protection plans and locks along with complimentary handcarts and dollies. Visit LockBox Storage and let us help you with all your storage needs.

Upcoming Events in the Metro

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Zoolightful happening on December 8th-13th, 15th-23rd and 26th-30th: Omaha’s Henry Doorly Zoo and Aquarium welcomes the holiday season with an all-new wildly bright tradition: Zoolightful presented by Chesterman Co. Coca-Cola. Visitors will experience the zoo like they’ve never seen before, as it transforms into a world of immersive lands with unique and enchanting experiences, dazzling light displays and unforgettable holiday fun!

Bright Nights happening on December 8th-23rd and 26th-30th: Set a merry mood with friends and family and explore the illuminated indoor gardens on select nights. From a 20′ tall poinsettia tree to a tropical paradise, see festive installations that glow and shine, and showcase nature in a new light. Happening on select nights at Lauritzen Gardens. Reserve your tickets now!

Maker & Baker Holiday Market on December 9th: This event combines the world of aviation and aerospace with unique shopping experiences at the Maker & Baker Holiday Market at the Strategic Air Command & Aerospace Museum. Whether you’re a seasoned shopper, craft enthusiast or someone seeking holiday cheer, this event is for you! It features a variety of special gifts and delicious treats, complemented by a festive atmosphere. Attendees can explore offerings from local vendors and enjoy the community spirit!

Date Nights – Tacos & Tequila on December 13th: Join Forever Smitten for a unique date night, perfect for any couple! Grab your partner and enjoy a guided tasting of four wines paired with cheese where you will learn the process of analyzing the wine in your glass through the senses of sight, smell, taste and touch. There will be four tequila-based cocktails in addition to tacos and other Mexican-inspired dishes. Get your next date night scheduled and get your tickets now!

December Modus Coworking Free Coworking Day on December 14th: Experience the freedom of coworking at Modus’s monthly FREE coworking day, held every second Thursday from 8 a.m. to 5 p.m. Work in a vibrant atmosphere with high-speed wifi and take advantage of our office amenities. And that’s not all – enjoy the delicious Amateur Coffee and Artemis tea throughout the day. As the day winds down, stick around for our complimentary happy hour starting at 4 p.m., where networking opportunities abound. Indulge in free wine and snacks and connect with fellow professionals in a relaxed setting.

3rd Annual Omaha Startups Holiday Party on December 14th: Scale Omaha and Modus Coworking are back for the third year with a holiday party for the startups in our community! If your company is too small for your own holiday (or if you just want another one), come have fun with other founders and community members. You’ve helped create a wonderful community this year, now come out to celebrate!

This Upcoming Events section is sponsored by Eagle Mortgage Company, is a locally owned and full-service mortgage company in Omaha.

Eagle Mortgage can help you realize your dream of owning a home.

People in the News

Sponsored by Baird Holm Attorneys at Law

a beautiful blue and white house with a green lawn
digital rendering of Flatiron District project buildings

Scooter’s Coffee has promoted Nick Jarecke to Chief Supply Chain Officer. He joined Scooter’s Coffee in 2019 as vice president of supply chain and has 20 years of industry experience, previously holding leadership positions at Kellogg’s, Tyson, Nestlé and General Mills. Omaha-based Scooter’s has 750 locations in 30 states.

League One Volleyball announced Justine Wong-Orantes will be the first founding athlete for league’s new pro team in Omaha. She is a former Husker player, was part of the U.S. National team and played professionally abroad. The team will launch immediately after the 2024 summer Olympics.

Cobalt Credit Union has appointed Michael Eisner as its new information security officer and Cindy Nieves as vice president of mortgage operations.

The University of Nebraska Medical Center has named Dr. Chris Kratochvil as vice chancellor for external relations. He has served as interim vice chancellor for external relations since the retirement of Bob Bartee at the end of 2022. The title change is effective immediately.

Josie Abboud, president and CEO of Omaha’s Methodist Hospital and Methodist Women’s Hospital, has been elected to the Mutual of Omaha Board of Directors. She is a leader in health care management, strategic planning, growth and policy, earning the Senior-Level Healthcare Executive Award from the American College of Health Care Executives and being recognized by Modern Healthcare and Becker’s Hospital Review as a top woman hospital and health system leader to know. She also is a recipient of the American Cancer Society’s National St. George Award.

The “People in the News” section is sponsored by Baird Holm LLP. Baird Holm’s dedicated team of real estate lawyers has extensive experience in all aspects of real estate law, including purchases, sales, zoning and land use, leasing, and dispute resolution. Click HERE for more information.

Wall Street: The Week in Review

with George Morgan

Morgan is the founder of Morgan Investor Education of Omaha.

Sponsored by Baird Holm Attorneys at Law

Views and opinions expressed herein are solely those of the author.

Mr. Market’s cousin, Mr. Bond Market, is in the middle of a hissy fit weird enough to make Mr. Market envious.

First, he moved short-term rates up 40 percent and long-term rates up 7 percent. Then he moved long-term rates up higher than short-term rates. And then he moved the long-term rates down to the short-term level. Now he has the short-term rates higher than the long-term rates, with the entire yield curve about 75 basis points lower than when he started.

For a gazillion years, Wall Street has preached that bonds are safe and that the best-ever conservative portfolio is one with 60 percent stocks and 40 percent bonds. Never mind what kind of crap is going on in the world; 60/40 is perfect.

Then Wall Street invented the robo account so computers could do all the work while they relax on their yachts. (A must read is Fred Schwed’s classic parody of Wall Street called “Where Are the Clients Yachts?)

Then a dozen or so years ago, some Wall Street marketing department said, “Let’s build a cash-cow mutual fund based on the 60/40 thing.” Then, out of the clouds, the target date fund appeared. The target date fund throws the owner’s age into the witches’ brew. The older the owner, the higher the percentage of bonds and the lower the percentage of stocks. Every six months or so, the computers rebalance the mix whether you need it or not. Today, Americans own $2 trillion worth of these target date funds.

Next chapter: American workers have $12 trillion invested in their 401(k) accounts. The account holders are handed a list of mutual funds to choose from. A whole bunch of these people don’t have a clue, and end up leaving their money in the cash account. Then the Feds stepped in and said, “Let’s make this super safe target date fund the default investment.” (Oh, by the way, most target date funds have a significant management fee).

Now back to the fan and peanut butter and Mr. Bond market. When interest rates are going down, the principal value of a bond increases. When interest rates are going up, the principal value of a bond goes down. So much for the safe bond stuff. Since the Fed started its interest rate kerfuffle, target date funds targeted for years 2025 and 2026 have declined on average about 20 percent, while the stock market has increased about 10 percent.

The reason I’m telling you this is not to say that all bond stuff is evil, wicked, mean and nasty. My purpose is to make you aware of a situation that has received little coverage in the financial media. Investing is not a one-size-fits-all situation; a successful investor is an informed investor.

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Have You Watched Grow O on Video Yet?

Jeff Beals, Trenton Magid and a guest in the KFAB 1110 Radio Booth

The Grow Omaha radio show broadcasts live every Saturday morning at 9:00, but now you can watch videos of each episode instead of just listening.

Grow Omaha’s brand-new website features video footage shot inside the radio studio during each week’s show!

Videos include News of the Week, Lightning Round, guest interviews, and “Grow Omaha Uncut,” a behind-the-scenes look at what happens during commercial breaks.

Support the Grow “O” Mission

Don’t keep this newsletter to yourself. Forward it to your friends, clients and co-workers. You want to know the real reason we produce this report? It’s to remind Omahans about the vibrant, prosperous and growing city they call home. The more Omaha residents believe in their city, the more successful we’ll all be. Spread the news!

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