Archive for June, 2009

Blogging the investment markets

Friday, June 19th, 2009

If you are seeking a good source of information to summarize  the  investment markets I suggest Wilfred Vos’s blog from ROI Capital. Have a view below:
June 19th, 2009

Canada’s main stock index ended higher yesterday thereby, snapping a 4 day skid, as bank shares rebounded and a rise in oil prices boosted energy shares. Financial shares, which account for about a 1/3rd of the TSX index, recouped lost ground as fresh data offered hope that the recession hit U.S. economy is stabilizing. Oil prices, which rose on the upbeat economic data, lifted the index’s energy sector to a gain of 0.56% after it fell earlier in the day to its lowest level since May 19th.

The S&P/TSX composite index closed up 0.55%, the gains were capped by decline in gold mining shares, which fell alongside a drop in gold prices. The recent rise in the U.S. currency has dampened gold’s appeal as a hedge against a downturn by the U.S. currency.

In the United States the Dow and S&P 500 gained, breaking a 3 day losing streak, as data on the job market and regional manufacturing revived hopes that the recession-hit economy is stabilizing. Stock markets have eased recently as investors reassessed the potential strength of an economic recovery. Yesterday’s data revived optimism, but analysts said real improvement is needed to sustain the rally. Financials supported the stock market after being among the week’s biggest drags. Data showed the number of people staying on jobless benefits fell for the first time since January, while manufacturing in the U.S. Mid-Atlantic region contracted much less than expected in June. Government data showed that while the amount of workers filing new claims for jobless benefits rose last week, the number of people collecting aid after the initial week marked its biggest decline since November 2001. The data supports the case of those looking for the bottom of the economy in this quarter.

The Dow Jones industrial average rose 0.69%, the Standard & Poor’s 500 Index rose 0.84% and the Nasdaq Composite Index declined by 0.02%.

Today stock markets mark the end of the 2 day quadruple witching period, referring to the expiration and settlement of June stock and index futures and options, which may increase volatility. The CBOE Volatility Index was down 4.8%, but slightly above the psychologically important 30 level.

The Dow Jones Stoxx 600 Index of European shares added 1.2% in London this morning while Standard & Poor’s 500 Index futures rose 0.6%. European Union leaders said they see the first signs of a “sustainable economic recovery” and ruled out increased spending to halt the worst slump since World War II. Morgan Stanley predicted a 32% rally in stocks of developing nations in the coming year as earnings beat estimates.

In short, we are bouncing back faster than we’d expected but further diversification and caution is warranted although, time in the market is more important than timing the market.
Regards,

Wilfred Vos Bcs, FMA, CIM, CFP, FCSI, DMS, CBV, MBA, CFA

SVP & Partner

Your attitude will determine your success

Friday, June 19th, 2009

How do we measure our success? It is a concept I stuggle with given that people measure success diferently. In my mind It is not a finite measurment. Success is always a compared to what, or a compared to who, type measurement. Most peoople would acknoledge that Warren Buffet is sucessful, but when compared to Bill Gates maybe not as much.

 

Attitude plays a big role on how you view success. Attitude will figure in every equation of performance. If you are honest with yourself it may be time for a change within several aspects of your sales and marketing plan. Faced with three alternatives for action:  Stay with the status quo,  get on the right track, or find another vocation—which do you choose? 

 

There is only one wrong choice:

 

Stay with the status quo

 

Under-performance is one thing. Acceptance of mediocrity is a whole new ball game.  Nothing can cause your attitude to get worse than failure to reach your goals. And the worse your attitude becomes, the more you will tend to under perform. It is a vicious cycle. No one ever went from failure to success by sticking with the status quo. The time to break this cycle is now—if you really want to succeed.

 

How to break the cycle. The first step in breaking a cycle of under-performance is being honest. If you really want to succeed, you will take the actions necessary to bring success. If you don’t really want success, you will tend to stick with exactly what you are doing now. If you really want success, take an accounting of what you really need to do:

 

Þ      Do you need to change a negative attitude to positive?

Þ      Do you need to go from being hampered by call reluctance to surpassing all obstacles?

Þ      Do you need to find out where the business really is and continuously attack on all fronts?

 

If you are not succeeding and you don’t think that you need a change in these three areas, you are not being honest with yourself. It is now time to enlist the help of others. Choose some mentors from your boss, peers (especially top producers), family, and targets.

 

Ask them to be painfully honest. This is important because your inner circle will not want to hurt your feelings. Just because you are not a top producer does not mean that they don’t like you. You must convince them that you only want feedback which will improve performance.  You have to convince them that you will not be defensive—and you must deliver on this promise. Just listen and absorb—do not respond. 

 

You are not interested in affirmation of any positive aspects of your execution. Any positive affirmation will point you back to the status quo. You may even choose to abandon the positive aspects of your game plan to accomplish more in the long run.

 

If people are being honest, you will hear statements such as:

 

Þ      You seem to miss larger opportunities that are presented because of smaller obstacles;

Þ      You focus on the negative aspects of your job;

Þ      You don’t seem to be able to solve complex problems; and

Þ      You seem to hang around the office too much.

 

Using the information. The purpose of this research is not to make you feel bad and cause your attitude to get worse. The reason that we ask an alcoholic to announce their disease is to begin the road to recovery. The solutions for your recovery are quite simple.  If you need to go where the business really is, then find out where it is. If you don’t know, ask your boss or top producing peers.

 

Every office or company has top producing individuals from whom the information is readily available; you do not have to reinvent the wheel. The process of benchmarking uses the knowledge of those around us. Take a top producer out to lunch. Spend a day with him or her.  Volunteer to be his or her assistant for one month. If you don’t know the answers, become a sponge for information instead of a mediocre complainer stuck in the muck of  the status quo.

 

What if you really don’t want success? If you really don’t want success, then the time for honesty is now. Salaried workers in the government sector may be able to reach retirement by coasting. Not so for commissioned sales personnel. There is nothing wrong with recognizing that you are in the wrong industry—or wrong aspect of the industry. It is wrong to not recognize that fact and continuously be miserable because you are under-performing with regard to your expectations.

 

If you can be happy in a salaried job with delineated responsibilities—then take action to achieve that position. The key is happiness. If your happiness comes through accomplishing independent successes in a self-directed career, then take the actions necessary to achieve your goals. There is no greater reward than that.

 

We welcome your response.

 

 

Homes you can buy with a credit card

Friday, June 19th, 2009

I got the idea for this blog from a Forbes magazine article. As the title suggest you can purchase real estate throughout Canada and the United States using your credit card. I am not suggesting this is the route to go given the higher interest rates associated with credit cards or unsecured credit lines over traditional mortgages, but in theory if you possessed a credit card with say a maximum limit of $100,000 you could take out a cash advance and buy that property outright with no financing required. Check your local MLS listings for properties under $100,000 and you will be surprised by the availability in today’s marketplace. Even in major urban centers like the GTA, apartment style condo’s can be found for under $60,000.

We welcome your comments.

Why do we elect idiot politicians?

Thursday, June 18th, 2009

London city council recently consented to allow parking on city streets between 3-5 am. Previously this violation resulted in a $30 fine. It’s about time our local council applied some common sense to their decision making. Outside of the obvious cash grab there was no other logical reason to prohibit such a practice. There was the snow removal argument. In the summer? Give me a break. The need to clean the streets argument. Then why not allow parking on one side of the street for the first 15 days of the month, and on the alternate side for the following 15 days. Nobody on council smart enough to come up with that?

This followed the big “car idling” issue. Consideration was being given to reduce car idle times to one minute before being required to shut off the engine. The environmental impact of this was what exactly? Did someone do a study? What was the cost of enforcement going to be? Does the car know its only idling? My point being that this is a futile attempt to cure a symptom of the problem when the real solution might be better alternative methods of transportation to reduce the use of cars, period. I would ride my bike more if I was not so concerned about being wacked by an inattentive driver. Why not widen new roads to include a bike path? Why does a street need sidewalks on both sides? Could one side not be used for bikes and the other side for pedestrians? Again nobody on council smart enough to come up with that.

Don’t get me started on the provincial ban on weed & feed and other lawn care products. Why was this even a priority? Nobody died last year in Ontario as a result of weed and feed yet this becomes a top priority. Children are dying each day in the world from disease and malnutrition but no one seems to care. Saving weeds is more important.

Lastly I will take a shot at a local optical store offering two for one frames. Not that I am against the concept but based on the marketing campaign the owner must be a politician. The premise of the radio spot is that eye glasses are a fashion accessory and that you need two pairs one for work and one for evening. Fashion accessory? Really? I though eye glasses were to correct your vision. How sad that an important medical device get trivialized as a fashion accessory. Tell that to the people that can’t see without them.

We welcome your comments. Tell me your best “idiot politicians” story.

 

Synergy Marketing

Thursday, June 18th, 2009

 

I love the idea of developing partnerships with realtors, financial planners, accountants, lawyers, bankers and other professionals that we can share our clients with. Check out my musings to learn more about how it works.

 

The rules of maximum synergy marketing dictate that if we are marketing by ourselves we are wasting synergy. As business people we all recognize that we have a limited amount of our most precious resources—money and time. It is our lack of time and money that limit our ability to market effectively. We know we must market to increase our productivity and income. We also know that we don’t have the time to market as we would like. Since we don’t have time to market consistently, we must make every marketing activity as effective as possible.

 

It seems that everyone is interested in partnering to lower the costs of their marketing, finding additional sources of revenue or navigating an additional way into the hearts of their clients.Yours is not the only product which is purchased by your target audience. By opening your eyes a little wider you will find the perfect synergy marketing partners that will enable you to increase your marketing effectiveness.  

 

Who are the perfect synergy marketing partners? They share the same target market as you but sell a product which is related and non-competing. Maximum synergy marketing indicates that you must also know from whom else your targets will purchase on a regular basis. In many cases, this is not hard. If your customer purchases a home they are going to need insurance and moving services. If they have just purchased their first home they might not be thinking about how that purchase fits into their long term financial planning—but they should be doing just that. In other words, you must know their purchase patterns and also anticipate the needs that your targets may not anticipate.

 

The basic question to ask about your synergy marketing partners:  how can they benefit from your marketing efforts and how can you benefit from theirs? Why should you spend your resources (time and money) contacting customers and not achieve a second objective for another individual or company who could also include you within their marketing efforts?  Sometimes these actions can be as easy as adding another flyer into your mailing (and vice-versa). Sometimes these actions might involve jointly calling upon targets which will take advantage of previous relationships built up by the synergy partners. In other words, you introduce me to someone you know and I will introduce you to someone I know.

 

As your eyes open wider, you will find that anyone who is operating his or her marketing plan within a vacuum is not taking advantage of many synergy opportunities which revolve directly outside of his or her narrow field of vision.  Why market alone when you can have many people marketing for you?  This is what synergy is all about!

 

We welcome your comments.