Chapter 34 — Break the Cycle?

_January 16, 1984, Chicago, Illinois_

{psc} "I bought a condo today," I said to Deanna when we sat down in a booth in the downstairs dining room at Maxim's.

"Why?! Are you moving out of the house?"

"We're all moving; well, not Jack and Kristy. I bought a six-bedroom townhouse-style condo on the 91st and 92nd floors of the Hancock Center."

"Holy shit!" she gasped. "I can't even imagine what THAT cost!"

"A lot less than it's worth because interest rates are so high. I have access to a very low-rate mortgage through Spurgeon, so my monthly payment will be half of what someone who had to go to a bank to obtain a loan would pay. The monthly payment is about three times what I'm paying on the house but with far more space and a FAR better address."

"A commute that is counted in minutes by elevator, right?"

"Yes, for both Bianca and me. And it'll make things so much easier after Sophia is born. Jack and Kristy will rent the house from me, so we'll have room for the rest of us, a nursery, and a spare bedroom. All of the bedrooms are bigger than those in the house, and each one has its own private full bath and walk-in closet. The challenge for you is a studio, but there are empty storefronts in Streeterville that I could rent. Haight Studios or something like that?"

"It has to be something avant-garde or out of the ordinary. Maybe Ateljé Haight?"

"I don't know that word. Is it French?"

"It's the Swedish word for an art studio. I've never seen it used in the US before, so that makes it edgy and cool, and it'll attract attention."

"Which is what we want."

Can you afford a separate studio?"

"Yes, though we'll need to figure out the finances. Maybe you could rent space to other art students? Or turn it into a private gallery?"

"That might work. There's always tough competition for studio space at school. And the idea of a gallery is good, but I have to be careful not to upset the gallery owner in Oak Park."

"I understand the point, but being able to sell without commission and being in what the _Trib_ calls a 'tony' neighborhood would counteract any negatives. Nothing says you can't show in Oak Park as well as your own gallery."

"I like that, and I want to explore the idea with you. Back to the house — what about the hot tub?"

"That's a loss, but four of the bathrooms have Jacuzzis. The one we'll use for the nursery and the one that will be the spare room wouldn't. From what I could tell, a Jacuzzi could be installed in each of those if we wanted."

The waitress came and took our orders and returned with our drinks and salads right away.

"When would we move?"

"I expect to close around the end of February, and we could move at any time after that. There's no rush, though I'd want to be in and settled before Sophia is born. You could stay at the house until we sort out your studio situation, but your room would be available right away.."

"I'm curious, but do all the bedrooms have windows?"

"Four of the six. The bedrooms are on the second floor, and the condo is in the corner of the building. Two bedrooms along one side and two along the other have windows; the two interior ones don't. We'll use those for the nursery and spare room.

"Downstairs, there's a huge great room, a large open-plan kitchen, and a study or den, which would become the new Japanese room. There are hookups for a washer and dryer, too. The building has an indoor swimming pool for tenants, as well as a gym. There's also a sauna, an on-site grocery, an on-site dry cleaners, and a twenty-four-hour concierge with doorman service."

"Unreal. I don't want to pry, but will you share how much you'll make this year?"

"My compensation is no longer a fixed salary but is based on the management fees we collect. For this year, it should be roughly $220,000 plus bonus."

"You can definitely afford it!" Deanna said with a soft laugh. "And me!"

"Yes, I can, though I have to be smart about it. It would be very easy to burn through that money. So many of the guys at Spurgeon do."

"How much do the top guys make?"

"A million or more in base compensation, plus bonuses."

"How big are bonuses?"

"They can be more than the total base compensation, but the amounts are purely at Noel Spurgeon's discretion. There's also something called 'carried interest', which is money that is mine but which I don't want to touch because of the tax implications. That's around a million bucks, though I'd lose at least forty percent to taxes if I tried to take it out."

"So you're a millionaire already?"

"On paper."

"I chose the right patron!" Deanna exclaimed. "That's just a crazy amount of money."

"It is, but I'd give up every cent if it could have saved Keiko."

"Sorry. I didn't mean to make you melancholy."

"I already was; I just hide it well. Please don't feel you need to walk on eggshells around me."

"Bottling it up completely is a bad idea."

"I know, and I'm not doing that. I have let it out, just in private."

"You know I'm here for you, right?"

"I do," I replied, "and I appreciate that."

We finished our salads just as the waitress brought our meals.

"Changing subjects," I said after the waitress left, "how does this work tonight?"

"You just sit on a stool, holding a pose. The basic gist is that the sketchbooks will tell the story of a romantic relationship with its ups and downs. Tonight, you'll meet in a bar, and it'll progress to physical contact, but there will also be conflict. One pose, for example, is the two of you standing back-to-back with your arms crossed. When it progresses to a love affair, the clothes start to come off."

"And Sophie's little sister is OK with that?"

"She is Sophie's little sister, so I can't imagine she's anything less than enthusiastic!"

I chuckled, "That's one way to describe Ivy and Sophie. What's the makeup of the class?"

"Seven women and four men, plus the female professor."

"Will everyone be sketching?"

"Yes, and we'll use a mix of graphite, charcoal, pastel, and pencil."

"Will I be able to see the finished works?"

"Yes. They'll be displayed at the school once the class is finished, then go into each student's portfolio. And yes, that display is open to the public. I probably should have mentioned that."

"You should have, but I also should have asked. I gave my word, so I'll do it, of course."

"You have nothing of which to be ashamed!"

I chuckled, "It wasn't that; it was the potential for damage to my reputation."

"I doubt that would happen," Deanna said. "It's not pornographic, and I think people expect someone like you to have sexual prowess and be well-endowed."

"I'm not sure I'd want to verify that empirically," I said with a goofy smile.

Deanna laughed, "Three of the four guys are gay or bi."

"Are you trying to convince me to bail?" I asked lightly.

"Well, one of the girls is a lesbian and a hardcore feminist. I'll wager anything you care to lose that she doesn't draw certain parts of your anatomy to scale when we get to that point!"

"Then I'll be in good company, given what you explained about Michaelangelo's _David_!"

"One day, we have to go to The Louvre!"

"What other art museums would you visit?"

"All of them!" Deanna declared.

"OK, top five?"

"I think it's easier to just list the cities — London, Paris, Amsterdam, Rome, and New York. Honorable mention to Leningrad, the former Saint Petersburg, in Russia. There are multiple museums in those cities that could be visited on a trip."

"You've been to Paris and Amsterdam, right?"

"Yes, but I absolutely want to go again!"

"Decide how many days you'd need in each city, and we'll see about taking a trip next year."

"Seriously?"

"Seriously. Russia might be tough, but I could look into it."

"I'm going to hold you to that!"

We finished eating, and after I paid the bill, we headed to the School of the Art Institute. We stopped at the restroom, then Deanna led me to the studio. Just outside the door, I saw a young woman with blonde hair, a slim figure, and sparkling blue eyes who looked enough like Sophie, I was sure they were sisters. Deanna proved me correct almost immediately.

"Alexa, meet Jonathan; Jonathan, meet Alexa!"

"I've heard _all_ about you!" Alexa smirked.

"Sophie does like to talk," I replied with a smile.

"I heard about your wife; my condolences."

"Thanks."

"Hi, Deanna," a woman of about thirty said, coming up to the three of us.

"Hi, Claire! Jonathan, this is Claire, our professor; Claire Dawson, Jonathan Kane, our male model."

"Nice to meet you! You being tall, dark, and handsome, both complements and contrasts our female model, who I see you've met."

"Just enough to say 'hello'," I said. "Nice to meet you as well."

"Deanna, I need ten minutes alone with Jonathan before we start."

"You'll need WAY more time!" Deanna teased.

"I meant to go over the release! Go set up, please. Alexa, you can go into the room. Jonathan, come with me, please."

The other two girls left, and I followed Claire into a small office, where she handed me the release.

"I'd apologize for Deanna, but given you're her patron, I suspect you're used to her by now."

"Very!"

"Read the form and sign it. Basically, it allows us to display and sell any art with your likeness, and you agree your only compensation is the $15 fee for each session."

I read over the release and didn't see anything that concerned me, so I filled out the blanks for my personal information, signed and dated it, and handed it to Claire.

"Deanna tells me you're a stockbroker."

"I have two licenses, but my main job is running the Research Department."

"At age twenty-one? Impressive."

"Thanks."

"I also heard about your tragic loss. My condolences."

"Thank you."

"Deanna said you'll be completely comfortable being nude."

"I'm not sure that's true, but I did agree to do it."

"Most people are a bit self-conscious the first time they model, even clothed. You'll get used to it."

"Has Alexa modeled before?"

"No. This is her first time as well. You appear to be in good shape, at least as far as I can tell with you wearing a suit. Is that your normal attire? Suit and suspenders with a tie?"

"Yes."

"Do you work out?"

"Three days a week at the gym in the building where I work."

"Take off your jacket and turn slowly, please," Claire requested.

I did as she asked.

"Is this how you'll usually be dressed?"

"Yes."

"Would you bring a change of clothes with you each time? Blue jeans and a polo or rugby shirt?"

"I can do that."

"Do you have a bathrobe?" Claire inquired.

"Black, knee-length; I also have black silk pajamas and a blue happi."

"Those would be perfect for future classes," Claire said. "Just bring a change of clothes for now. We have five minutes. Any questions before we go to the studio?"

"None that I can think of."

I followed Claire to the studio, where she had me put on my jacket and sit on a stool next to Alexa. Claire suggested poses, and once she was satisfied, she addressed the eleven students. It was actually boring, as I couldn't do anything but hold the pose until we took a five-minute break, where I used the restroom and got a drink. I returned to the same basic pose after the break and held it until the second break. The cycle repeated itself until the class ended two and a half hours after it began, though it seemed longer.

"I take it that's how it's going to be for the rest of the semester?" I asked Deanna as we left the School of the Art Institute.

"With variations in poses, yes. It's not the most exciting work, but Claire really appreciates you helping us out."

"What poses, if you know."

"In a general way. Wednesday will be similar to today, then you standing face-to-face, you with your arms around each other's waists, and so on. Claire will talk to you both about what you're comfortable with once your clothes start to come off. But it'll all be tasteful; we're not creating porn!"

"I've heard people describe nude paintings as 'pornographic'."

"Clueless morons!" Deanna declared. "They clearly don't know the difference between art and porn."

"I actually think they do," I countered. "They draw the line in a different place than you do. Think about the difference between pornography and obscenity. Can you give me a clear definition of where the line goes with which everyone will agree?"

"Obviously not."

"The same is true for the difference between art and pornography."

"So what do you think?" Deanna asked.

"I think it's complicated because it appears that for many, if not most, the medium matters. A nude painting is art, and a nude photo is pornography even if they depict the exact same image."

"I hadn't considered that."

"As I said, it's a complicated problem, and the First Amendment offers exactly zero guidance beyond 'free speech' and 'free press'. My American government teacher said the original intent was about political speech and that it only applied to the federal government. But I think we're way off topic."

"True. Want to get ice cream before we go home?"

"Sounds good."

_January 17, 1984, Chicago, Illinois_

"I bought a condo," I said to Jack as he, Bianca, and I drove to work on Tuesday morning.

"Where?"

"In the Hancock Center," I replied. "My plan is for the girls and me to move there, and you and Kristy could rent the house until you're ready to buy."

"What brought this on?" he asked.

"Our discussion about the baby and you and Kristy talking about moving out. Bianca suggested a condo in the building, and after I thought about it, we looked into it, and I put in a successful bid on a six-bedroom, townhouse-style condo on the 91st and 92nd floors with a city view."

"Holy shit, Dude! Talk about a deluxe apartment in the sky!"

Bianca and I both laughed.

"That's what I said!" Bianca declared. "Jonathan didn't know the reference to _The Jeffersons_."

"He watches the least amount of TV of anyone I know!"

"So, what do you say, Jack?" I asked.

"I say 'yes', of course! I'll speak to Kristy tonight, but I can't imagine her saying 'no'. Now I just need Noel Spurgeon to approve my job as a runner."

"When are you supposed to know?"

"By Friday. When will you move?"

"Sometime in March, I suspect. I need to work out the details."

"Pretty cool."

"I think so."

The morning was routine, but I received a surprise call early in the afternoon.

"Jonny, it's Bev."

"Where are you?"

"Chicago. I was released on my own recognizance yesterday. When can I pick up Heather?"

"You'll have to go to Goshen to do that. She's with your parents."

"YOU BASTARD!" she screeched. "HOW COULD YOU?!"

"I had no idea what was going to happen with you, and Heather needs stability. I felt that was what was in her best interests. If you want my advice, go home and reconcile with your parents. Call Mr. Chojnicki right away, as he filed to give your parents emergency custody yesterday."

"I HATE YOU!" she growled, and I was positive she had slammed down the phone to disconnect the call.

I flashed the switchhook and dialed the Newtons' number.

"Newton residence; Jim speaking."

"Mr. Newton, it's Jonathan. Bev just called me. She was released on her own recognizance. She asked about Heather, and when I told her Heather was with you, she became irate and hung up on me."

"I'll get in touch with Mr. Chojnicki. Do you know if Bev is at her apartment?"

"I don't know for sure, but I'd assume so. If you let me put you on hold, I can call the tailor shop and ask."

"Yes, of course."

I did that, and Beth confirmed that Bev had shown up. I thanked Beth and promised to call her later in the day, the pressed the button to bring Jim Newton back on the line.

"Yes, she's there. I have no idea what she's going to do, though."

"Thanks, Jonathan. We really appreciate what you did over the weekend, looking out for Heather's best interests."

"Bev needs psychological help," I said.

"We agree, of course."

We ended the call, and I thought about what to do next, and the answer was 'nothing'. At this point, Bev had to get counseling and get her act together. That was up to her, and as much as I hated the state of our relationship, I didn't see any way forward for us, even as friends, until she completed counseling.

I completed the day, then headed to Jeri's house for our monthly dinner.

"Are you doing OK?" she asked when I arrived.

"I'm hanging in there," I replied.

"Is there anything I can do for you?

"Just be my friend."

"I received the year-end statement today. 25.6%, even with the restrictive covenants in the trust. I'm very, very happy."

"Me, too! Unfortunately, I don't think we'll be able to hit those same numbers this year. We can discuss it at dinner so I don't have to go through it twice."

Nelson arrived just then, and I took him aside to let him know about the condo.

"I don't even know what to say!" he said, shaking his head. "Obviously, I'll handle the purchase for you."

"Thanks. I heard from Bev today. She was released on her own recognizance and is in Chicago."

"Her job is still there if she wants it, but she needs to get in touch soon."

"Maybe have someone call her because she's not speaking to me."

"Then how do you know she's here?"

"She called, and when she found out I'd facilitated Heather going to her parents, she became very upset with me and hung up."

"I'm not sure what she expected you to do other than that. In situations like Bev's, it's almost always the grandparents or an aunt or uncle."

"I know. Anyway, we should rejoin the others."

Five minutes later, the entire gang had arrived, and Karl called us to dinner.

"I was telling Jeri earlier that this year's returns are likely to be lower than last year's," I said. "The big scores on the currency devaluations made up a good chunk of our gains, and I don't see any potential in that area in the near term. Our guidance for the market is a bear market for the Dow and modest gains for the S&P. That said, I have a number of ideas to ensure we beat not just those numbers but Treasury yields as well."

"Can you give us an idea?" Gary asked.

"Forward-looking statements aren't guaranteed, but I believe I can approach 20%, which will be more than triple our S&P forecast. Obviously, I'll look for opportunities to beat that. The problem for this year is inflation is picking up, which means the Fed is going to have to tighten despite it being an election year. But they won't raise rates more than a couple of points.

"That's enough to suck the life out of stocks and also create weakness in the real estate market. Once they wring the excess inflation out, they'll loosen, probably late this year, after the election, and continue to loosen, looking for the 'soft landing'. Pete is predicting the Prime Rate to be around 10% in June of next year, but that's a forecast with a high margin of error."

"Who's going to win the election?" Jeri asked.

"Our model says it's going to be tight, but that Reagan should eke out a victory so long as interest rates don't climb above 13%. If they do, the Democratic nominee, most likely Walter Mondale, will win, potentially in a landslide."

"I don't buy it!" Jeri declared.

"Reagan is weak right now because of the economy. He's strong on foreign policy, but if you're having trouble making ends meet, you're more likely to vote for 'change' as Jesse Jackson is promising. He's going nowhere, but that is the lesson of history. That said, a lot can happen between now, and November and Reagan could be reëlected in a landslide. Ask us again in June. Either way, we'll develop a strategy to maximize returns."

"Jonathan," Marcia said, "I'm sorry if this is out of line, but when is Keiko's service?"

"Valentine's Day at Montrose Cemetery, but per her parents' request, it's family only. Sorry about that."

"It's OK. How is Bianca?"

"Getting big," I said with a smile. "We're expecting Sofía Angélica in early April."

"A girl?" Jeri asked. "That's news!"

"We found out at our last prenatal checkup. Our next appointment is in early February."

"That's cool!"

"So, what else is going on in everyone's lives?" I asked.

We chatted for the rest of the meal, with each of my friends giving an update since we last met in December. After dessert and coffee, I said 'good night' and left the house to head home.

_January 18, 1984, Chicago, Illinois_

On Wednesday morning, just after 9:00am, my phone rang.

"Research, Kane."

"Mr. Kane, this is Marvin McCafferty with MTB Sports Management in Cincinnati."

"Good morning, Mr. McCafferty. Thank you for calling."

"Stefan Chojnicki seems to think you're a financial _wunderkind_."

"My fund returned 39.7% on the first dollar in for calendar year 1983. The Dow returned 20.27%, and the S&P 500 returned 22.34%. I have about $110,000,000 in AUM, and I'd like to send you a prospectus for any athletes you represent."

"What's your fee structure?"

"Two and twenty with an 8% hurdle."

"Steep."

"Show me consistent returns at that level with lower management fees, and I'll advise you to go with that firm. Spurgeon Capital has a ten-year track record of beating the market after fees, expenses, and transfer of carried interest."

"I'd like to see a prospectus. Let me give you an address where to send it."

He gave the information, and I repeated it back.

"You'll have it tomorrow morning," I said. "It'll come by Federal Express overnight."

"I'll look it over and get back to you by the end of next week."

"Please call with any questions."

We ended the call, and I updated my pipeline sheet to include his firm in the 'new prospects' list. I got a copy of the prospectus, along with a printout of the 1983 statement, wrote a short note, and took everything to the mailroom. I handed the stack of paper to Naomi, who was covering for Jack, then returned to 29. I went back to work, and at 11:30, I met Bianca for lunch in the break room. After we ate, we went to the gym and then completed our workday. She and Jack headed home while Deanna and I met for dinner at Bacino's.

"I want to ask you something," she said.

"Go ahead."

"I won't be upset or anything if you say 'no', but would you like some company tonight? No pressure."

"OK to just say what I'm thinking and feeling?"

"I wouldn't expect you to do anything else."

"I don't know the answer to that question, and I don't know when I'll know. I know I appear to be on a completely even keel, but I'm not sure that's the case. In fact, I'm sure it's not the case, but things are slowly getting better. It's obviously something I've thought about, but something just feels off. If I had to speculate, it's devotion to Keiko, which I know is illogical."

The waiter arrived to take our order and immediately brought back our drinks and small salads.

"OK to explore that?" Deanna asked.

"Yes, because I do have to sort out the future."

"First, I think you'll agree that our situation — you and me — is different from pretty much anyone else because you're my patron."

I nodded, "Yes."

"And you would agree that we care for each other but have no particular romantic interest, and we're both OK with that?"

"More than one person has indicated that they believe you're in love with me."

"People believe all sorts of things, including invisible sky gods who grant wishes, and UFOs! Maybe it appears that way to them, but appearances can be deceiving."

"This sounds very much like a conversation with Haley where I pointed out that it wasn't possible to know someone else's emotions or thoughts, and there would be no way to distinguish between being in love and not being in love if the actions were what she thought indicated love. She rejected that, saying that she would know."

"I call BS!" Deanna declared. "I don't even understand my own emotions, which we discussed when you asked about my painting, so I'm not sure how she could say she'd know if you behaved in the same way as someone who was 'in love'. I hope it's OK to say this, but I'm reasonably sure you loved Keiko with all your heart, but you weren't 'in love' with her. Do you know about the various words for love in Greek?"

"No."

"They have like eight words, with varying meanings, and what's interesting is there really isn't a word for romantic love because that's actually a concept from feudal times. The three main ones are: self-giving, self-sacrificing love; erotic love; and brotherly love. I think the first one best describes you and Keiko."

"Of those three, I'd say that's probably right. I would have done anything for her."

"And she for you. Part of our problem is that, as a society, we've determined that there must be some relationship between romantic love and sex. Anyone who has sex just for fun is looked down on, and society actively discourages it. But the reality is that without the externally imposed system, there is no direct relationship between a desire to fuck and being in love. And the physical pleasure derived has zero to do with love and everything to do with learning proper technique.

"Where it gets tricky is psychological or emotional fulfillment, which is a very different thing. As I see it, it has zero to do with how good the sex is and more to do with how you feel about your partner. I don't think I'm going out on a limb when I say that the limitations brought on by Keiko's illness limited the physical satisfaction but probably increased the emotional satisfaction."

"I can't dispute that," I said. "It certainly matches my experience over the past six months."

"Keiko knew that you weren't a romantic, but I also saw you make romantic gestures, which she appreciated. She wasn't a romantic, either. In fact, none of the girls at the house are. If I can delve a bit deeper, the girls who bailed all expected and needed romance; the girls who kept seeing you didn't. Well, there's one exception, but she's such a special case I'm not sure how to describe it."

"Violet?"

"Yes. She's clearly in love with you, but she can't escape her traumatic childhood. She's the one girl you know with whom going to bed together, if it were possible, would be a lifetime, monogamous commitment."

"I agree."

The waiter brought our pizza, and we dug in.

"I think what I'm trying to say is that neither of us is going to assign inappropriate meaning to spending the night together, if you're ready for that."

"That is the real question," I replied. "I think I'm still in the 'if' stage, not the 'when' stage, and I'm not sure about how to make the transition or if I even should."

"Setting aside my request, you are not a monk, and I think you'll do yourself grave psychological harm trying to be one. I know it's only been three weeks, but you need to figure out how to move from 'if' to 'when'. Unfortunately, I'm not sure how to break the cycle because I've never known you to act contrary to your nature."

"If I can read between the lines," I said thoughtfully, "you're saying that going to bed together won't solve the problem because I can't go to bed with you until I solve the problem."

"Bingo," Deanna replied.

"Let me think about it, and I'll give you an answer after my modeling session."

"OK."

Having a conundrum to mull over made the modeling session seem so much shorter than the one on Monday night. The posing was more comfortable, as Alex and I were sitting on a small sofa rather than stools. I had still worn my suit, and Claire had explained the 'storyline' such that Alexa and I had met in a bar and were now back at my place. It was up to each of the students to sketch the details of my mythical apartment, which would give real variety to their collective work.

"Give me some more time to think about it," I said to Deanna when we left the studio just after 9:00pm.

"No pressure."

_January 19, 1984, Chicago, Illinois_

On Thursday, I met Dean Pullman in his office at 11:40am, as we had agreed. After introductions, I handed him my job description, and he explained the program.

"We're piloting a BA degree in business that is operated as an independent study program. You complete eight core courses, then work with a faculty advisor to develop goals and criteria for work that is equivalent to coursework. After an evaluation, there may be additional course requirements to cover areas where your work experience does not give you the equivalent knowledge you would need.

"I have your transcript, and so far you've received A's in Financial Accounting, Computer Science 100, Math 101, and Statistics 200. You're currently enrolled in International Finance 310, and according to Professor Baum, you could probably teach the class, though I suspect there would be some weaknesses in areas where you don't focus in the course of doing your job.

"To complete your core courses, you need to take English 101 and a second humanities course with a writing component. The best options are history or sociology. Once you complete those, the independent study program will begin. It's structured such that you could graduate two years after you complete the core courses, assuming your work qualifies, which Professor Baum believes it does."

"How does tuition work?"

"According to your records, your tuition is reimbursed by your employer. Does that benefit include two classes per semester?"

"Yes."

"Then you won't have any trouble. The tuition for the independent study program is two courses per semester over six semesters. You'll receive grade reports, and your tuition bill will list sequential course numbers so as not to cause a problem with your personnel department."

"How much time outside work would be involved?"

"In terms of coming to campus, whatever schedule you work out with your advisor. There will be assignments, often simply writing reports on some aspect of your job. One example might be an analysis of the effects of changes in nominal interest rates on the stock and bond markets. I believe you would have little trouble producing something like that, assuming Professor Baum's assessment is correct."

"That's a large part of what I do for a living," I said. "What do I need to do?"

"Complete the English core course and a humanities course, then come back to see me, and we'll assign you a faculty advisor."

"I'll check with the Registrar about those two courses and, if possible, complete them during the summer."

"If you have trouble getting into either course, let me know, and I'll fix it with the Registrar so you can begin the independent study during the Fall semester."

"Thank you, Dean Pullman."

We shook hands, and I left his office, heading back to the office where I was at lunch at my desk while continuing my research. Late in the afternoon, Will Waterston called to let me know he was faxing the paperwork to roll my current mortgage into the one for my investment properties to Nelson. I thanked him, then called Nelson.

"There's a minor complication," Nelson said once I let him know about the paperwork. "The title to your house is currently in your name, and we'll need to transfer it to Yuusuke Holdings. That's not difficult; I just need to file the necessary paperwork with the Recorder of Deeds. Given you're the sole partner in the corporation, and you take passthrough income, it's just a matter of changing the title."

"OK. What about the condo?"

"There are some advantages of having it owned by the corporation, though you'll need to speak to Nancy King and Robert Black to get the details. When do you expect to close on the condo?"

"February 29th," I replied. "I already ordered the inspection using the same inspector I used for my investment properties."

"Do you have the loan commitment letter?"

"I'll have it tomorrow, most likely. I have a meeting with Noel Spurgeon in the morning to discuss it. That's basically a formality, but as with everything, you never know."

"Are you going to add the house to the management deal you have with Kasia Pucinski?"

"No. Jack and Kristy are going to rent it, and I see no point in paying her to manage it. When they eventually move out, then I'll do that."

"OK. Once I have the paperwork, I'll review it. I suspect it will be substantially the same, but I'll review it for any changes in terms or provisions."

"Thanks."

I ended the call and turned back to my Bloomberg terminal but was interrupted by Tony, John Peters, and Bill Young coming into my office.

"Hawaiian Airlines," Tony said.

"What about it?" I inquired.

"It's trading at about five bucks, and Bill thinks it's a breakout stock next quarter. John isn't sure, and neither am I, so we came to you to decide if we add it to tomorrow's analyst report."

"Break it down for me, please, Bill."

"They've lost money the past two years but just implemented a significant cost-cutting program."

"What market?"

"Interisland only at the moment, but if they can get their finances in order, they'll begin charter services in the South Pacific. My assessment is that the cost-cutting will succeed, and I have a price target of between $9 and $10 by the end of June."

"John?"

"Airlines are risky, and deregulation is hurting the major carriers as smaller competitors eat into their profitable routes. Could they turn it around? Sure. Will they? I think that's a long shot."

"Tony?"

"The one difference here is that they don't have much competition for interisland routes, so they have time to get their financial house in order. And those charter flights will be very lucrative. That said, John is right about the sector in general."

I considered for a minute before answering.

"This is shaping up to be a bad year for stocks, so if we can find a stock that will double in a quarter, that would be a huge win. Write it up with Bill's view as the lead and John's as the counter."

"What weight do you want to assign to each opinion?" Tony asked.

"Given the division and uncertainty, call it 50/50, but lead with Bill's opinion. The traders will bitch, but sometimes it really is a coin flip. Bill, continue to follow Hawaiian and update your analysis on a daily basis, but listen to John's counterpoint. The traders will have to make their own call unless we can firm it up."

"Thanks," Tony said.

Bill and John left, but Tony stayed.

"What are _you_ going to do?" he asked.

I held up my finger and typed 'HA' into Bloomberg to get the current price. I checked the volume and float, then dialed Joel Steinem's number.

"I need 200,000 shares of Hawaiian Airlines at no more than 5⅜ a share without moving the market. If you can't find a large block, then do what you can to mitigate driving up the price."

"That's awfully thinly traded," he said.

"I know, which is why I'm not looking for more shares."

"What do you know?"

"I'm placing a bet," I said. "You'll see the full details in tomorrow's analyst report."

"Let me work," he said. "I'll see if I can find someone with a block they want to unload in the 5¼ range."

"Thanks."

I hung up and looked up at Tony, "Does that answer your question?"

He laughed, "Yeah. You're that sure?"

"No, but if Bill is right, I clear a million on that trade; if not, I can unload it without losing much, so long as Joel Steinem can find me the block of shares. I'm offering a 25¢ premium over the last ask, so there's a good chance."

"Still a gutsy call."

"This is a year where gutsy calls are going to be the difference between winners and losers. Last year, it was position on the performance chart; this year it's finding a way to make money in what looks to be shaping up as a bad year. Reagan is going to jaw the Fed, but there is no chance Volcker is going to cut rates in the face of inflation unless the Republicans offer significant spending reductions, and that's an electoral loser, even if it makes financial sense."

"Tech stocks are not looking so hot, either. I know you bought a block of Apple on speculation about the new computer being introduced, but everyone is sour on the entire sector."

"I think that's shortsighted. What Bianca and Steve are doing could be applied to just about every industry, and every job is going to involve working with computers except the manual trades. And even they'll use them for things like inventory control."

"You're repeating my analysis to me!"

"Because it's accurate! And you know what happens when you follow the herd!"

"You end up walking through shit!"

"Exactly. You know as well as I do we make most of our money when we're doing the opposite of the herd or are far enough in front that we can't be trampled by it."

Tony left my office, and I went back to analyzing the latest global trade and foreign exchange numbers, trying to find something — anything — to give us an edge.