This Day in History...

On November 10, 1940 the Pittsburgh Steelers defeat their cross-state rivals, the Philadelphia Eagles, 7-3.

Philadelphia kicker George Somers puts the Eagles on the board in the first half and Coley McDonough scores on a 1-yard touchdown scamper for the Steelers in the third. The game at Forbes Field finishes without a single penalty called. Not a single offsides, false start or “habeas grabus.” No NFL game has finished without a penalty since. Indeed, eighty years later the typical NFL game features more flags than the United Nations General Assembly.

The more we advance as a society the fairer we want things to be, or at least appear. Thus, our love affair with instant replay, video assisted referees and regulation of all kinds. Some say they protect the integrity of the game, others that they slows things down to an unlovable pace. Speaking of pace of play, does last week’s electoral lurch toward mandated Federal gridlock mean more or less regulation? How many flags can we expect? I have no idea. But investors need to understand that any change in a regulatory regime will have winners and losers. And in a close game, even one penalty can make all the difference.