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“BUY LOW…SELL HIGH” – LOOK FAMILIAR?

“Buy low…Sell High”  Sound familiar?  Good Morning Everyone!  It’s been a few months since our last post.  After spending several years analyzing dozens and dozens of investment charts and graphs as a stockbroker/financial consultant/and a middle-market institutional broker at two international investment firms, I saw the above graph and article this morning on Bloomberg.  I couldn’t resist…I have to share my views and make a few comments…

As the saying goes, “a picture is worth a thousand words.”  And this picture on the surface tells a lot.  Based on my years of experience advising and consulting the general public, (both inexperienced as well as very experienced investors) on prudent investment management, I know most everyday investors and self-proclaimed savvy or experienced investors simply don’t understand the foundational principles of investing.  The general principle is to buy low and sell high.  In most cases, the general public invests in a manner that is the exact opposite…they tend to emotionally buy high, and in a panic… sell low.  The savvy/experienced investors on the other hand do exactly what they should do…they unemotionally buy low and unemotionally sell high!  How do they do this?  The answer in general terms is simple, but it’s not easy.  They do the following, but methodically:

  1. They don’t invest with emotion, they invest with discipline using financials/trading models etc. (which are all available to the public through their investment firms and online sources)
  2. They do their own homework first, by relying on their own research, good advisors (if they need one), and their own business sense.
  3. They don’t follow the crowd…they do quite the opposite.  They buy when the public is emotionally selling or panicked, and sell when the public is emotionally optimistic and running up the markets.

The point is, if you want to buy low and sell high, you have to get into the mindset of the savvy experienced investors.  Beginning with understanding where the markets are in the midst of the investment cycle…are they over-valued or under-valued?  Are they at high or low valuations.  And secondly, begin asking yourself (or your advisors) strategic questions.  As you can see in the above chart, all three markets are at or near their all-time highs.  Then depending on whether you are an existing owner or considering to be an/investor/or speculator, ask yourself the following questions:

  • Are the markets (stock/bond/real estate) under-valued or over-valued?
    • Based on what information and valuation data?
    • What are your investment goals & objectives?
    • What’s your time horizon?
    • What’s your expected R.O.I.?
  • Is it a good time to be either a buyer or a seller in any these markets right now?
    • It depends…What’s your motivation?
    • Are you an existing holder considering to sell…or an investor considering to buy…or simply a speculator looking for a short-term profit?
  • Why do you want to buy/sell/ or hold in these markets now…is it due to need/long-term investment/speculation?
    • Again…What’s your motivation?
  • What’s your buy/sell discipline…your entry/exit points?
    • How did you arrive at those entry/exit points…through emotion or through a careful analysis of financial data and momentum oscillator data?
    • Again…What’s your time horizon?
    • Again…What’s your projected R.O.I. given your time horizon?

In general…not always…when the general public’s interest goes one way (in terms of investing), you may want to consider doing the opposite (however do your own due diligence and research first, and don’t rely on others!).  Generally, when it comes to “investment timing”, people tend to buy their investment assets at inappropriate times because they feel good or positive about the economy/the markets/or a particular company is popular or they’re afraid they’re missing out.  When it comes to inappropriate investment timing on selling, it’s usually because the markets are diving and they simply panic.  In either case the timing is off due to emotional investing and not methodical investing.  That’s understandable…we’re human!  That said, most experienced investors understand this costly emotional roller coaster and tend to avoid that ride by doing the fore-mentioned above.  When markets have fallen and asset valuations are near their lowest price points in their market cycle, this often times presents an optimal time to begin acquire such assets.  Likewise, when the markets are reaching new highs and the general public has taken an emotional buying position, this may be an opportune time to begin  taking some profits off the table, and setting the cash aside to invest when prices soften once again.

Is this a simple concept…yes.  Is it easy to implement…no.  When it comes to investing, most people tend to take action based on their emotional instincts…which are usually wrong.  Interestingly, the Bible also cautions us to not be ruled by emotions as ““The heart is deceitful above all things, and desperately wicked; Who can know it?” (Jeremiah 17:9…please understand this text in its context).  So given the state of these markets, use your common sense…your business sense…do your own research…ask strategic questions, and make your investment decisions based on research and not emotion.  This will get you closer to becoming a savvy, experienced investor with the mind-set and practice of buying low and selling high.  We hope you found our perspectives and opinions to be insightful and helpful.

GMS BUSINESS CONSULTING provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services to help business professionals successfully organize, grow and operate their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P. (our 3-phase business development solution), designed to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15

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Cyber Security – Part Two

Jim Rickards – THE DAILY RECKONING

Hello everyone…this is Part 2 of 3 of our series called Cyber Security.  In 2016, Accenture Consulting published a cyber security white paper (geared towards large organizations) that we thought would be of interest to business owners like you.  This study goes into a more in-depth analysis supported by industry interviews and statistics.  You can download this white paper in two formats; either the Executive Summary or the Complete Report.

Having worked for a forensic accounting firm for several years, I understand some of the challenges and vulnerabilities all organizations face, and that we as consumers face regarding cyber security.  The challenge is, there doesn’t appear to be much access to simple, step-by-step, practical standards of cyber security available to small business owners to readily implement.  This is a real problem!  The white paper focuses its attention on cyber security threats of larger organizations, but we as small business owners can learn from their challenges, approaches and solutions.  The small business owner (and individual alike) needs access to practical, actionable standards of practice against cyber security threats and the protection of their data.

When we think of cyber security from the perspective of a small business owner or as an individual, think about it in terms of our smartphones/ tablets/ and computers.  We either grant permission for auto updates or regularly receive promptings to update and “accept” software company’s “terms and conditions” to either download or update the software on our devices.  This “acceptance” grants those software companies access to our data through our phone cameras, microphones, phone records, pictures and access to other data files.  It’s quite obvious that we have been conditioned to accept whatever terms and conditions are asked by these software companies in order to comply with their downloading/updating standards.   Why should you grant access to all these requests for your smartphones solitaire game?  What this means is that our data and our privacy are at risk.  Our privacy and security are practically non-existent because we have blindly “accepted” software providers terms and conditions.  We therefore have either knowingly or unknowingly relinquished our privacy, our data and control of our information, how it’s managed, secured and shared with others.  This can and does have serious repercussions!  How could we be then surprised that our information could be stolen and disseminated all over the globe?  We have only ourselves to blame.

We would recommend reading the white paper referenced above by Accenture Consulting, and think about how large organizations are approaching this eminent risk.  What can we as small business owners learn and implement from these organizations to better protect our privacy and data (and client data), and to help mitigate cyber security threats and breaches?  We’ll post a follow-up in Part 3 of this series in a few weeks to address how we as business owners (and individuals) can take some practical and actionable measures to better control the security and privacy of our data.  Well I should say, as best we can given that we live in a state of technological acquiescence…whether we choose to believe it or not.  Until then, we hope you enjoy reading the white papers by Accenture Consulting.  Back to you in a few weeks…

Contact Us if you would like to discuss business strategies for your business.

GMS BUSINESS CONSULTING provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services to help business professionals successfully organize, grow and operate their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact us if you are interested in learning more about our services, and in particular, about our M.A.P. (our 3-phase business development solution) to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15

 

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Cyber Security – Part 1

Jim Rickards – The Daily Reckoning

Cyber Security may be the number one economic threat to individuals, businesses and to our nation.  Recently, there was a massive breach in cyber security for some of the largest companies in the world.  For the most part, it was brushed over on mainstream media for a few days.  Nothing substantial was revealed in terms of understanding the nature of this particular cyber hacking, and the potential threat and depth of damage this may have lead to.  Jim Rickards wrote an interesting post on his blog, THE DAILY RECKONING regarding cyber security that we thought would be of interest to our clients and readers.  Jim gives a macro perspective on the three degrees of the cyber security threats that currently exist in the world today.

We’ll post a follow-up to this in a few weeks to address how cyber security experts are strategizing about how to best address this imminent threat currently and for the future.  Hopefully their insights will enable us as business owners and individuals to take practical and actionable steps to better control the security and privacy of our data (well, as best we can).   Given that we live in a state of technological acquiescence (whether we realize it or not), have you ever seriously considered just how quickly and easily we “accept” the terms and conditions of downloading new software or software updates to our smart phones?  Do we really understand the access rights we are granting to these organizations, and what they’re doing with our data and who they’re sharing our data with?  Think about it…  Until then, we hope you enjoy reading the article by Jim Rickards.  Back to you in a week or two…

 

GMS BUSINESS CONSULTING provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services to help business professionals successfully organize, grow and operate their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact Us  if you are interested in learning more about our services, and in particular about M.A.P. (our 3-phase business development solution), designed to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15

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Election Fraud In The U.S. – FACT OR FICTION?

Hello Everyone!  Well, we’re almost two weeks past the general elections, and we thought we’d let the dust settle a little bit before addressing the issue of election fraud, and whether or not it is fact or fiction would make for an interesting and timely post.  We are NOT claiming election fraud in this past election of President-elect Donald Trump vs. Hillary Clinton, we’re simply addressing the issue, and attempting to shed some light on the possibility that election fraud may exist here in America, and if so…to what extent.  While mainstream media apparently dismisses the notion and possibility that election fraud exists here in the United States, and labels those who do believe this or discuss this as out-of-touch, non-sense and conspiracy theory, we want to show some alternative views from credible sources that you may want to consider.

Many people we have spoken with regarding the issue of election fraud and stolen election possibilities here in the U.S., both recently and in the past, also tend to dismiss this issue as either non-sense or a conspiracy theory as well.  The few people that we have spoken to about this issue that more readily accept this as a real possibility and threat are high-tech professionals who understand software & network engineering and mathematical algorithms.  That said, those business professionals generally do not fit our typical client profile for whom we are writing this post.  Business professionals like you (lawyers/CPA’s etc), while well-informed, generally dismiss this issue as well, due to disbelief that this could happen in America, lack of evidence or credible sources that would support this position and take this matter more seriously.  We’re not going to try convincing you one way or another as to “if” this happens or is even a possibility.  We simply want to present to you several sources of information for you to review, consider and to weigh the evidence so that you may come to your own conclusions.  As we ALWAYS stress to our readers, do your homework so that you are better informed so that you can make better decisions.

The better people are informed, the more likely corrective legislation can be discussed, drafted and implemented to change or fix the problem our society faces.  We don’t know if this past election was fixed/stolen/modified because there is no credible “provable” public audit of voting results prior to/during/after the polls close that verify that ALL voting terminals/servers/data centers have clean software, and accurate mathematical algorithms encoded into the software are verified.  If we do have this authenticated process in place, please let us and the sources listed below know…because we haven’t seen them yet.  Listed below are just a few of the many sources available that competently address the issue of election fraud in the U.S.:

  1. Dr. Paul Craig Roberts (Former Assistant Secretary of the Treasury – Biography) discusses and provides links to support his position on election fraud ARTICLE #1, ARTICLE #2.
  2. World News Daily – Information Clearing House interview with Professor Mark Crispin Miller – (of New York University),  “Can U.S. Elections Be Stolen”
  3. BlackBoxVoting.org – Black Box Voting, founded in 2003, is a nonpartisan investigative reporting and public education organization for elections.
  4. Investigative Reporter – Jon Rapporport’s blog post on October 31, 2016 Election Fraud

Interesting information, right?  The question is, how will we as voters, citizens of the United States respond to this issue?  Do we the American public really care or care enough to want to make a difference?  There is a solution…we the people must get informed, organize and discuss, then act judicially to hold our representatives accountable in making the changes necessary to resolve this issue.  We’ve presented some credible sources that expose that election fraud here in the U.S. exists.  So the question is, what are you and I going to do?…What are “we” going to do about it?

GMS BUSINESS CONSULTING provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services to help business professionals successfully organize, grow and operate their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact us if you are interested in learning more about our services, and in particular, about our M.A.P. (our 3-phase business development solution) to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15

 

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THE FUTURE OF FOOD…INCLUDING THE BELOVED HAMBURGER!

Impossible Foods Video

Hello Everyone!  Have you thought of where technology will take food of the future…including the beloved hamburger?

Sounds different from our regular postings, right?  Well, it’s been several months since our last post (sorry about that!).  We’ve been so busy with client work, designing our new website, and adding a new service-line called Digital Marketing Optimization (more about that in a few weeks).  So, back to today’s post…While doing some online research this morning, we stumbled across a very interesting story on Bloomberg, presented by Sam Grobart titled “Making a Steak Without Cows“.  This is really a brief narrative on the future of food…including the hamburger.

  • One company focuses on growing/producing insect-based protein is called Entomo Farms, based here in the U.S.
  • The other company highlighted in this story is also based here in the U.S., and is located in Silicon Valley (the one producing this revolutionary plant-based hamburger) is called Impossible Foods …check them both out!
  • Here is a link to an interesting follow-up documentary on the founder of Impossible Foods,  Dr. Pat Brown, and the processes he uses to produce this plant-based hamburger.

We thought this was fascinating and eye-opening, so we wanted to share it with not only our family and friends, but also with our readers as well.  My only question is how does our body assimilate this processed plant-based burger?  If all is well regarding digestion, then I am looking forward to trying it.  We hope you find this story to be informative and of interest even though it is not on-point with our traditional posts.  Enjoy!

GMS BUSINESS CONSULTING provides Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services to lawyers and business professionals to help them successfully organize, grow and operate their businesses more effectively and efficiently.  We do NOT provide investment advice.  Contact us if you are interested in learning more about our services, and in particular, about our 3-Step-Solution to help you strategically focus and tactically grow your business.  We would welcome the opportunity to speak with you.

info@gmsbusinessconsulting.com

707-218-3135

John 14:15

 

GMS Business Consulting 306 Comments

Something Strange In The Numbers?

Zero Hedge

Zero Hedge

 

Hello Everyone!  Every once in a while we want to let newer viewers know why our business blog exists, and why we provide the content that we do.  As our longer-term readers know, the content of our blog is to serve two purposes:

  1. First, to provide meaningful/helpful business management content to help lawyers/law firms/CPA’s and other business professionals to better manage their short-term and long-term business goals and objectives.
  2. Second, is to provide our readers with powerful, insightful news, comments, and commentaries related to financial/economic/and political information that may not be reported by mainstream news media, and not as well-known or understood by the general public. Read more
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Is Leaving The Euro Zone Irrevocable?

Euro Photo

AFP Photo / Louisa Gouliamaki

 

In scouring the news the past few days, we came across an article posted on RT, discussing whether or not a member country of the EU (currently Greece) can leave at will.  It’s an interesting issue, and one that brings the following questions to mind:

  • Can a member country of the Euro Zone leave at will?
  • Are there mechanisms currently established to enable this?
  • How does a country actually leave the EU?
  • Are member countries, required to be members for life?
  • What are the penalties and consequences for leaving? Read more
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The Return of Blackberry?

Blackberry Passport

Mark Blinch/Reuters

 

Hello Everyone!  This morning we’re writing to you, our viewers, regarding the release of the new smartphone by Blackberry, called the “Passport“.  Seriously…you ask?  Who cares?  I’m sure that’s what many of you are thinking!  We however believe many business professionals should care/need to care or at the very least, be aware of the launch of this new device and its possible benefits for business and personal use.  With data security becoming increasingly important,  we as business owners and those of you in highly sensitive industries like legal, financial, healthcare, technology, and government, should be concerned about the security of our business and client data, as well as our own personal data!  Read the online articles on the NY Times and Bloomberg and other online sources to get a good perspective on this new release.  So back to the new Blackberry PassportRead more

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Does the Fed Manipulate the Price of Gold?

Dr. Paul Craig Roberts Institute for Political Economy

Dr. Paul Craig Roberts
Institute for Political Economy

 

Hello Everyone!  The question we have for all of you today is…does the Fed manipulate the price of Gold?  Well according to Dr. Paul Craig Roberts, yes they do manipulate the price of gold and he explains how they do it in today’s article posted on his blog, the Institute For Political Economy.  For those of you who have never heard of Dr. Roberts, he is an authority on how the U.S. Treasury, the Federal Reserve Bank, and the overall banking & financial systems operate (he was the Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal.  He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.).  And that’s just a brief introduction to Dr. Roberts background… Read more

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A New Breed of Derivatives…Really?

The JPMorgan Chase & Co. in New York Photographer: Victor J. Blue/Bloomberg

The JPMorgan Chase & Co. in New York
Photographer: Victor J. Blue/Bloomberg

 

Hello everyone…You heard right!  Hard to believe it, but it’s true!  If we didn’t learn the first time around about Wall Street created derivatives, how about a second round?  Guess who is leading the charge this time around…you got it, Goldman Sachs,  JP Morgan Chase and ProShares.  In today’s Bloomberg Article, you will discover that the unimaginable, the unthinkable is happening again. Read more