Latest Fascinating Posts…

• Your Business Tripod Steadily Grows BusinessJune 19, 2013, 11:30 am
  

  Are you steadfast and unshakeable?

  The difference between those who are not successful and those who are is their level of dedication to persevering and finding a better way to attain their vision. They do not give up, give in to others, or sadly conclude, “it can’t be done”. Instead, the successful adopt the mindset similar to Thomas Edison. Mr. Edison proclaimed he found 999 ways the light bulb would not work which finally led him to the right path of the light turning on.

  Observing motivated others. I have come to conclude there are three legs to business, and I term the concept, your Business Tripod. The three legs consist of belief, vision and plan. The tripod implemented well establishes a sound grounding. Self-introspection will lead you to developing three very strong legs to further ensure impending success.

  Consider these questions: Do you have a profound belief in your forthcoming success? What will your success look like when you have accomplished all your desires, and what will your legacy be? Finally, how are you going to attain your vision?

  Answering these questions prepares you for creating the milestones required for achieving your most cherished vision. As you begin to chart your best course of action, remember obstacles and unforeseen circumstances sometimes appear beyond our control. Come to terms with the fact that not everything will work perfectly the first time out. It’s possible a route may need to be discarded or at best case, tweaked. You will do well to build flexibility into your plan particularly since technology and society advance at a very quick pace. Be open to possibility and disregard negative people around you. It is the positive minded who stand the best chance of finding the right route.

  The more specific you are about what you wish to achieve, the more likely you will create the right plan. Revisit priorities for life, business and relationships to be certain you remain on track for who you are. Your steadfastness and consistency in all you do will encourage help from others as well as attract far greater interest in the services you provide.

  As others see you working diligently and progressing in your business, they will respond by spreading good word of mouth and potentially hiring you.
  One huge key to success is sharing what you learn with those following in your footsteps. Create short postings to let others know your tips for success. Continue reading…

• Bullish Investor Sentiment Left Unsupported; Stocks Set to Crash?June 19, 2013, 11:25 am
  

  If one were to look at the current state of the stock market, because of the substantial run-up in prices, one would think that investor sentiment is being based on the bullish opinion that corporate earnings will continue to rise.

  However, a look below the surface would reveal that corporate earnings are not growing anywhere near the levels necessary to sustain the current enthusiasm in investor sentiment.

  The corporate earnings estimates for the second quarter of 2013 are currently 1.1%, which is a drop of approximately 75% from earlier estimates of 4.3% made by analysts for that quarter. (Source: FactSet, June 14, 2013.)

  If corporate earnings do come in at 1.1% for the second quarter, while that would be the third consecutive quarter of growth for corporate earnings, eight of 10 sectors will see a decrease in corporate earnings growth. With 86 companies issuing negative guidance for corporate earnings during the second quarter, as opposed to 21 issuing positive guidance, corporate earnings are clearly stagnating.

  It appears that investor sentiment is far too bullish regarding the underlying fundamentals of the economy. As I mentioned previously, much of the move up in the stock market has not been based purely on corporate earnings growth; rather, the upward momentum has been due to investor sentiment fueled by the Federal Reserve’s aggressive monetary stimulus package.

  A great example of the dichotomy between investor sentiment and the underlying corporate earnings is the technology sector.

  Chart courtesy of www.StockCharts.com

  By looking at the chart of the NASDAQ above, it is obvious that investor sentiment has moved into the bullish camp. However, corporate earnings are telling a different story.

  According to FactSet Research System Inc. (NYSE/FDS), corporate earnings for the information technology (IT) sector are set to drop by 6.3% during the second quarter. Even after taking Apple Inc. (NASDAQ/AAPL) out of this index, as that company is a large contributor to the drop and will see a sharp decline in its corporate earnings, the technology sector is still set to see a decline in corporate earnings of 3.1%.

  In fact, corporate earnings for the technology sector have been relatively weak over the past couple of years. Yet looking at the chart of this index, investor sentiment has been extremely bullish.

  This bullish sentiment is not only in the technology sector, but the market in general, which has led to a valuation for the market above its long-run trends. Continue reading…