After the sell off, stocks may actually be cheap

Sell Off Wall Street - A Silver Lining

Wall Street is finally breathing a sigh of relief after the S&P 500 Index managed to hold on to its first weekly gain of the year. One prominent market watchers had commented that inspite of signs of strength; stocks are still in store for a thundering reset. The ruthless sell off Wall Street had faced during the last few weeks could have a silver lining.

 According to FactSet, the S&P 500 Index is presently trading at around 15 times the earnings; analysts tend to expect constituents companies to post over the next year. This reading is known as `forward P/E on the popular measure of valuation which is compared to a 15 year average forward P/E ratio of 15.7. The conclusion collected from historical comparison is based on the timeframe taken into account.

 It is worth observing, in this case that the current valuation level tends to represent the premium to the average of 14.3 observed over the past five and ten years periods. Since the firm in the meantime is probably using various earnings estimates, IQ of S&P Capital current forward valuation number is 15.7 though they also observed that was under the 15 year average.

Broad Market Trading in Abyss

David Stockman who was the former OMB Director under President Ronal Reagan, is of the opinion that the broad market has been trading in the abyss after breaking beyond 1,870 in 2014, since then with a meagre one percent return. He had commented that they had been there for 700 days and had something like 35 attempts at rallies where all have failed for the `four no’s’. For him the four no’s comprise of a combination of no escape velocity, no earnings growth, no dry powder from the central bank and no reflation.Accompanied together, it leads him to the belief that the U.S. economy seems to be on the point of a full blown recession.

He further adds that they are getting to a point where the chickens are coming home to roost and there is no help from the central banks and that is why these rallies seem to get weaker as well as shorter. He is of the belief that the overflow of easy money from central banks all across the world has shaped a credit crisis which is so severe that it could probable take years to come out of what it has created.

High Powered Money – Enormous Expansion of Credit

Market watchers have pointed out a stunning $21 trillion collective balance sheet built up all around the globe, up from 2.1 trillion only 20 years back. He has said that this is high powered money which has resulted in an enormous expansion of credit as well as financial valuation bubble.

Stockman has observed that the speedy increase of credit has caused debt all over the world of over $225 trillion and has mentioned that they `are at peak debt’. Stockman, at this point considers that the hands of the Fed could be tied up after being on zero interest rates for almost a decade. There is nowhere to go but negative and it is time to get out of the market completely.

The S&P 500 has been progressively in correction territory in 2016and the large-cap index closed the week at around 11% from its 52 week high. However Stockman is of the opinion that it could plunge another 30% from its present trading which takes it back to levels not envisaged since 2012.

3 Investments You Must Make For Your Restaurant

When you own a restaurant, your focus is on product quality and customer service. That means that you are sure to keep essential equipment and materials around that help you to serve your customers better. Instead of hoping that things go smoothly from day to day, you should invest in a few little business tools that will allow you to maintain your level of service, and protect your business at the same time.

Liability Insurance

Responsible business owners have liability insurance to protect their businesses in case something were to happen. But when you run a customer service business like a restaurant, you can never anticipate what may happen on a daily basis. While it is financially smart to get the basic liability insurance you need to satisfy legal requirements, you should consider getting extra liability insurance for the sake of your business and your customers. Additional liability insurance will give you peace of mind when the weather creates slip and fall hazards on your sidewalks, or when a promotion you try goes bad and people get hurt.

Critical Spare Parts

Most restaurants keep spare parts scattered here and there throughout the building, just in case something goes wrong. But what would you do if your main oven went down and you did not have the part you needed to bring it back up to speed again? You could go to a parts website and get to the section that says "click here for overnight service," but you are still losing out on an entire day's worth of business.

To keep your restaurant going, you need to do a critical spare parts assessment and then keep at least one of those spare parts on hand at all times. This requires an extra financial investment on your part, but the payoff comes when having these parts available prevents you from losing thousands of dollars in business in just one night.

Power Generators

While it is unrealistic to expect to be able to power a whole night's worth of business on a single generator, it is possible to serve the customers you have to maintain your high level of service. When the power goes out, most people expect a restaurant to shut down and send customers home. But when your restaurant can finish serving meals that have been ordered before shutting down due to a power outage, then that enhances the restaurant's reputation.

Part of offering excellent service is being prepared for just about anything. When you invest in necessary services and equipment for your restaurant, then you will enhance your reputation as a reliable and top-notch business.

How Convenient Is A VoIP System?

The growth in home VoIP systems has been significant, and it has reached the point where people are starting to compare land lines with VoIP services. The broad amount of service providers has helped to give consumers choices, and has encouraged a steady stream of technological innovations. But should people really search out the cheapest VoIP rates as an alternative to land lines, or are land lines still the way to go?

VoIP Systems Are Scalable

If you want to add a line or add features to your VoIP system, then the process is extremely simple. With a land line, adding a line can take a while and it can also be quite expensive. But when you decide that your teenager should have their own phone line so that they stop tying up the home phone for everyone else, the process of adding that line with a VoIP system is very simple.

VoIP Systems Are Portable

Some land line services allow customers to check voicemail remotely, but the process can often be long and frustrating. With a VoIP service, voicemail can be checked quickly online. You can even set up a reminder that sends you and email each time you get a voicemail so that you can check your messages quickly when you are not home. You can also check your billing or any other aspect of your VoIP system easily and quickly online.

International Calling Is Available

One of the biggest advantages of having a VoIP service over a standard land line is that most VoIP service providers give you extremely inexpensive access to international calling. Because the Internet makes it easier and cheaper to connect international calls, the VoIP service providers can keep your costs down and allow you to make international calls without the fear of an escalating bill.

Managing Your Features Is Easy

It can be difficult to manage features such as call waiting and call forwarding on a land line service. But because everything about a VoIP service is done on the Internet, managing these features becomes as simple as clicking a button.

The rapid growth of VoIP phone services has a lot to do with how much easier these services are to use than a land line. Not only can you save money with a VoIP service, but you can save time and aggravation as well.

Sometimes It's Good to Change Your Goals

I was going to write a post yesterday on Groundhog's Day Goals*, as one of mine is to post on a more regular basis to this blog.  But I got sidetracked - I found out that someone I know died of colon cancer Monday.  He wasn't really a friend, more an acquaintance.  Barely that, really - my company uses many of his company's products, and we'd emailed a number of times in the past year and I sat with him at breakfast at a conference last fall, but that was about it.  Even though I didn't know him well, from all my interactions with him, and what I heard through colleagues, he was a great guy and for some reason his death really hit me.

Maybe it was the suddenness of it for me.  I had no idea he was sick from any of our communications; seeing him at the conference I never would have guessed.

Maybe it was the suddenness for him.  I found out that he had been diagnosed with the cancer just last April, and it was recently that the diagnosis was deemed terminal.

Maybe it was because he was younger than me and left behind a wife and small children, his kids maybe a bit older than mine but not by much.

Maybe it was because last week my best friend's sister-in-law died, at 54 older than me but still far too young.  She, too, lost her battle with cancer.

Regardless of the reason, I spent the day thinking about what's really important in life and didn't get to the goal I had set for the day.  But I'm not going to end with some trite catch-phrase by telling you to give your kids an extra hug or to call that friend with whom you've been meaning to re-connect.

What I am going to do is relate these thoughts back to financial planning though.  While this post doesn't talk about money, it has everything to do with it.  Remember that money itself is not a goal, it is a tool which gives us the time and ability to do what we love with who we love.  Don't let yourself fall into the trap of reversing those priorities.

OH -- and give your kids an extra hug tonight.



* Yes, I'm serious and it will be coming soon.  And if my impressions of J are anywhere close to true, he'd get a kick out of a post about him including Groundhog's Day Goals!

Health is Wealth; Health is Empowerment to your life

Having fever, lying on the bed for more than 36 hours, feeling miserable and can't do much activities, it reinforced me that health is wealth and it is empowerment to my life. Even if I am a billionaire now and I have to lie on the bed for the rest of my life unable to do anything, what is the point?

This also reminded me that time is the utmost important asset I have. I wouldn't want to wait until my next life to live my current life. There is always tomorrow, you sure? Live your day as if it is your last, but plan your wealth as if you will live till 100 years old. Cherish your time, not the material.

I realised everyone has a different stroke in maintaining a good health. Unlike most people who feel healthy after exercising, I always fell sick when I am back to my exercise regiment. It is weird because exercising supposed to keep me fit. I have started my exercise program lightly, but I am not spared again this time round. I guess because of my multiple roles as a maid, husband, father, employee and personal fund manager, my body get overly tired having to work so hard. Also, when I exercised, my body get warm and dehydrate and I get sore throat easier. I know this is against human wisdom that exercise is not supposed to have cause these problems.

However, this does not mean I should not exercise. In the longer run, exercise overcomes long term and major health issues. I just need to moderately try and try again. In fact, I overcome my childhood asthma because I am so physically active during my student time.

Try to pay attention to your body, understand your body and how you can maintain physical well being. Trust me, your body will thank you lifetime and only you can help yourself on this. Not even the doctors (Though they can provide you with medical treatment while you can provide yourself with preventive measures.)

For example, drink a lot of water, sleep early and wake up early, avoid spicy, fried and certain type of food help me to prevent getting sick so easily. These are almost at no cost to me. However, avoiding fried food totally is challenging because I do love them once a while. *Guilty.

This doesn't mean you should spend unnecessary money to buy health products. Natural way should be the best. If you really need some supplement, do understand what mineral you are lacking and buy the appropriate one. For example, no point eating calcium pills when you are not shortage of it. Try to get discount price at pharmacy or online pharmacy.

Are you paying enough attention to your body? Or you are born with good gene that you feel invincible most of the time without a need to take care of your body?

Do share your health tips.

What markets are really worried about

Dull Start for Global Stock Market

It has been a dull start for the global stock market this year and the first week has been described as the worst start ever, for Wall Street. During the first week of 2016, Frankfurt and Tokyo had dropped by double digit percentages while in New York the drop was 9% and in London 8%. However, China was the eye of the storm where the key index in Shanghai had lost 19% of its value during the same period.

The prices of commodity had also stumbled where crude oil prices for the first time in almost 12 years, had slipped to below $30 per barrel. Share prices, at times had followed oil downwards which is likely for shares of the companies in oil business. However, for the others it tends to reduce costs leaving consumers with more to spend on their products.

There seems to be a slowdown in emerging growth of the economies and China is an exceptional example though certainly not the only one. The instability had begun in the Chinese market, spreading all around the world.The Chinese stock market in itself does not seem to be the ultimate international issue.

Currency under Pressure

Though it is a serious issue for Chinese investors who had purchased shares while the prices were high, they have lost a good amount of money. However there are few of them to have a possible impact on consumer spending in China.

 There are also few foreign investors in Chinese market withthe possibility of serious losses inflicted beyond the country as direct significance. Besides the stock market, the currency, Yuan has also been under pressure and has lost its ground this year though not on the stock market scale. In the first week, the onshore, official rate dropped down by almost 2%. Some had indicated that there could be a possibility of the decline in the Yuan revolving into a full blown loss of confidence.

The financial market pressures on China are in portion at least an indication of the extensive and much discussed economic slowdown. Since the Chinese economy seemed to lose some space there has been some uncertainty on how well the authorities would handle the process. China would certainly need to slow to an added sustainable pace, but would the path tend to be a rocky one with an abrupt slowdown?

Significant But Catastrophic Slowdown in Growth

The official figures so far indicate a significant though not catastrophic slowdown in growth. According to official figures published, after three decades of 10% average growth, China seemed to slow down to 6.9% last year.The new assessment of the economic outlook of IMF tends to predict a further easing of the pace to about 6.3% this year and in 2017 around 6.0%. It records that China has experienced a faster than presumed slowdown in exports and imports, partially reflecting weaker investments as well as manufacturing activity. The apprehensions regarding economic outlook are not only over China. The new forecast of IMF, downgrades the outlook for the emerging as well as the developing countries and the ones which tend to stand out are Brazil and Russia. This is partly regarding the low prices of oil together with the other commodities as well as the political issues, external for Russia and domestic for Brazil. Besides, this there is also a substantial downgrade in the forecast for South Africa.

15 Questions you need to ask yourself about your personal goals

Life is all about possibilities that’s why asking questions are relevant as we grow and nurture ourselves. 

When it comes to handling your finances you need to ask great questions so you can have liberty to dream 

again. The impact of questions will surely be changing and challenging your existing perspective now.

Goals should be outcome oriented; Stephen Covey said “let us begin with the end in mind”. When it comes

to your growing knowledge in finances you need to understand and focus on what is really relevant.

Here are the questions you need to ask yourself.

      Focusing on the End Goal:

1.      What is it that you really, really, really want? Dig deeper…

2.      What is the SPECIFIC goal or outcome you're looking for?

3.    What is the REGRET for you of NOT achieving your goal?

Aligning with your Core Values:

4.    Is this goal in line with your life vision, mission, overall life-plan?  (Don't know - what does your gut tell you?)

5.    Is this goal in line with your values? (if you are not sure about it, Ask yourself what’s REALLY important to you in life - will this or that goal help you achieve more of it?)

6.    Are these goals something YOU truly want, or are they something you think you SHOULD have or SHOULD be doing?  (Tip: If it is a SHOULD, it may be someone else's dream…)

7.    When you think about your goal does it give you a sense of deep contentment or 'rightness', happiness and/or excitement? (If so, these are good signs that it’s a healthy goal.)

8.    If you could have the goal RIGHT NOW – would you take it? (If not, why not? What are the problems out there?)

9.    How does this goal fit into your life/lifestyle?  (Time/effort/commitments/who else might be impacted?)

Identifying Obstacles:

10. Can YOU start & maintain this goal/outcome?  (ie. Do you have grit to complete control over achieving the project?)

11. How will making this change affect other aspects of your life?  (ie. What else might you need to deal with?)

12. What's good about your CURRENT SITUATION? (ie. What's the benefit of staying right where you are?) Then ask, how can I keep those good aspects while STILL making this change?

13. WHAT might you have to give up/stop doing to achieve this goal?  (Essentially, what’s the price of making this change – and are you willing to pay it?)

14. If there was something important around achieving this goal (to help you succeed, or that could get in the way) that you haven't mentioned yet, what would it be?

15. WHO will you have to BE to achieve this goal? (ie. Friends or families that will be with you ups and down)

David Isaiah Angway currently helps young, urban and educated millennial (Gen Y) set and achieve their

long-term financial goals by educating them about investments, asset allocation, risk management, 

retirement planning, and estate planning. His role as a financial planner is to find ways to increase the 

client's net worth and help the client accomplish all of his/her financial objectives.