John Stossel on the politicians' war on Uber

John Stossel on the politicians' war on Uber

I've completed my MBA; now what?

"I have never let schooling interfere with my education." - Mark Twain

Now that I've completed my MBA, I can better see the wisdom in these words.  That's not to say that going to school is a bad thing, just don't let it box you in.  It should be the other way around; make it work for you.

GB

It's like a Rocky movie

With the title in mind, one should already know the outcome.  I'm referring to North American consumers and the North American economy.  Once every two years, I vacation with the family in Hawaii.  This year we're staying on the Island of Oahu, in Waikiki - a reward for the kids getting straight A's in school, and to say thanks to my wife for being patient with me while I completed my MBA; anyway, it's May, and I've have never seen it this busy here.  My hotel is fully booked, the beaches are packed, it's an hour wait minimum to get a table at any restaurant, and I feel like I'm in one long line-up during my daily 6am morning run (I'm training for the Scotiabank Vancouver Half-Marathon June 24).  Hawaii is forecasting a record year in number of tourists visiting the Islands and a record in related revenues.

Europe is in recession, China's and India's numbers are sliding, and it seems like North American consumers are willing to dip into savings in order to keep on spending.  Now I for one believe in living in the moment.  In recent years I've seen illness sideline friends and family, including my own, so you can't take the future for granted; regardless, I've still planned for the future, cutting back a little on spending and setting aside a small amount every month (for vacations), for my retirement, and for future generations of my family, so that they will have opportunities.

I sure hope everyone is doing the same (saving for the future that is), because while I believe we're in for a happy ending despite the world's problems (like a Rocky movie), we may only be in the early rounds and so a bit more pounding is to be expected.

GB

Criticism

Criticism is important and invigorating for the following reasons:

• You're on the right track when a target appears on your back.
• It's part of doing business.
• Trying to get everyone to like you is mediocrity.
• Play big or play small; criticism will come either way.  You might as well play big.
• History doesn't remember those who play neutral.
• Speaking out draws criticism.
• Criticism parallels influence.
• It takes courage to see things the way they are, not what you want them to be.

GB

Making Predictions

It's tough to make predictions, especially about the future; and if your investment approach relies on making predictions, then your returns are only as good as your forecasts. I'd throw in timing as well. History shows that's a tough way to make a buck. The so-called 'experts' get it right less than 1-in-3, and we all underestimate the impact of outliers, or extreme events that few predict. If you predicted the market perfectly from 2003 to 2008, it would have been for nothing if you failed to predict the subsequent sell-off.

Listen to the experts, because you can learn a lot from their knowledge about what they specialize in; however, be wary of their predictions because by specializing in one field, experts may overlook exogenous factors.

GB

Brazilian Bikini Wax Indicator

I have to share the following from today's edition of 'Diary of a Mad Hedge Fund Trader':

There is no end to which they will go to understand the future direction of the world economy. Now apparently, the price of Brazilian bikini waxes is going through the roof; no joke, the Brazilian government includes this strategic activity in its basket of consumer services to calculate inflation. It is one of the few measures they track which can't be clouded through altering of its quantity or quality. The point is that inflation is worsening, and not only in Brazil, but in China, India, and Vietnam; so expect more tightening.

They conclude that an economic indicator in the hand is worth two in the bush.

GB

Benefits of Financial Planning

Despite proven advantages of financial planning for retirement, the majority of Canadians don't have a financial plan for their future, according to an HSBC survey. According to their global study, 65% of Canadian respondents lack a financial plan, far more than the global figure of 50%. According to their study, those who have sought out advice and planned have amassed nearly 2 1/2 times more capital in their retirement plans compared to non-planners. Other features and benefits enjoyed by planners are a more diversified portfolio along with peace-of-mind and a positive outlook.

Here are some steps you can take:
1. Establish some clear short-term and long-term goals;
2. Benchmark yourself; are you on-track to meet your goals?
3. Develop a comprehensive financial plan;
4. Implement the plan;
5. Keep your plan under review.

GB