July 13, 2012: In Business>>Being Liked or Being Loved (Which one most important & WHY)
A little unkown secret regarding business relationships is: In business it is better to be liked than to be loved. When you try to be loved, people will take advantage of you. When you are liked, you earn respect and people will want to do business with you. Keep it simple!
July 11, 2012: How to Capitalize on the Turbulent Nature of LIFE
All movement in the flow of life is turbulent and, therefore, unpredictable. In other words, life isn’t linear (a straight line). As a result of the turbulent flow of life, the future is unknowable. Predicting the future is an exercise in probability analysis. For example, if I take these actions now, there is a 70% probability that in two years I shall arrive at this outcome.
Turbulence almost guarantees that it is not a question of if something will go wrong with your life plans, but what and when? Therefore, in designing your life strategies plan in broad strokes and have a fallback position.
Given the turbulent nature of life and its unpredictability, the question for you should be: “how do I capitalize on its opportunities”? The future belongs to those individuals who can quickly discern, adapt to, and exploit the unpredictable movements in the turbulent flow of life. Stagnation produces nothing over time but decline.
July 9, 2012: Where goes the Stock Market>>Update
The S&P 500 stock index closed Friday at 1354.68. It is still above its 200 day moving average at 1300 and its 50 day moving average at 1335. In addition, it is also less than 10% above its 200 day moving average. This means the market is far from being overbought. Following the numbers, the upward trend in the stock market is still in place. In spite of all the negative news, the numbers are still indicating a market that is either going to settle into a trading range or have a slight upward bias.
There is a problem brewing that can cause the stock market to swoon. If the Euro currency should continue to drop against the dollar, the earnings of the largest American companies will be negatively impacted. Many of these companies get at least 40% of their earnings from overseas. This can cause the stock market to take a tumble. Stay tuned!
July 6, 2012: Body Surfing and Finding Life’s Opportunities
I am an avid body surfer in southern California and I noticed a connection between getting a good long ride from a wave and partaking in life’s opportunities. You can go much further in life by riding a small wave that is building momentum than riding the crest of a larger wave. What this means to you is to beware of the trends that are popular and the masses are jumping into. For example, I remember the many real estate seminars that were being held for public (the masses) in 2005 & 2006 including ones by the great Donald Trump. That was a good time either not to buy real estate or sell it if you bought it previously. Nation-wide real estate prices topped out in the summer of 2006.
The real gems lie either undiscovered or the masses pass them over. Going with the crowd seems safe, but it will lead you off a cliff. Play your own game and play it well.
July 3, 2012: The Big Bang Wish
I would like to wish you all a happy July 4th holiday. Remember this about the role of government in your lives. Government is not your friend. It is your competitor for personal power.
Be free and prosper.
July 2, 2012: The Stock Market: Overvalued, Undervalued or What?
Usually when I have written about the direction of the stock market, I use a combination of the 20, 50 and 200 day moving averages on the S&P 500 stock index. I would like to take a small deviation from this course and talk about whether the stock market is overvalued, undervalued or somewhere in the middle.
Historically, the stock market is considered to be overvalued or rich when it is 10% to 12% above its 200 day moving average. It is considered to be undervalued when it is 20% to 30% below its 200 day moving average. The S&P 500 stock index closed today at 1365.51. Its 200 day moving average is at 1300. The market is just 5% above its 200 day moving average and, therefore, is not overvalued by any means. The market also closed above its 50 day moving average. What does this imply? It implies that the path of least resistance for the stock market is UP.