It’s November and, historically, the market does well when the weather – at least here in Oklahoma - seems gray, forboding and wintry.

We had an earthquake over the weekend; the aftershocks have been rattling dishes in Oklahoma cupboards; the scientists say that the aftershocks could go on for months. 

Last night, we had an aftershock that made the floor heat registers at my home shake, rattle and roll like Elvis did before the doc in Memphis gave him pills.

At any rate, if you can stand it, the market – at least based on history – could do well until May (the saying in New York used to be, “go away in May”).

There’s a new way to deal with volatility afoot. Milliman, the actuarial firm that is the very definition of anti-risk, has ported its method of hedging living benefits for most of the major insurance companies into a set of sub-accounts in the Ohio National variable annuity.

This methodology invests 90 percent of the individual’s sub-account with a separate sub-account manager and Milliman hedges 10 percent of the balance in cash, hedging strategies or a combination.  When it hedges the 90 percent manager’s risk, it does so with futures, which are, compared to options, a cheap date. The strategy looks promising and it certainly works for living benefits.

There’s unhappiness in America – many think we have lost our way. It does remind me of the time when Japan was going to take over the world. 

Remember when they were buying real estate here at rapid clip, and we all felt that we had been surpassed, bamboozled and befuddled? We do sometimes lose our sense of direction, however I suspect we’ll get back on the right path. It’s going to take leadership, sacrifice and common sense.

Yes, I understand Occupy Wall Street. I’m waiting for Occupy Washington – where our citizenry goes after the lobbyists, the people in the place where most of the real trouble starts.

Have a great week and get out your winter coat.