Author: Roger Staiger

20 December 2018

Question: According to MSN: Lifestyle, removing these 31 things from your life will make you happier and more successful?

Fed makes fourth rate rise of year but signals slower pace in 2019 – Pg. 1

–          The US central bank lifted the target range for the federal funds rate by another quarter point to 2.25-2.5%….but it also pared back its forecasts for further increases and indicated that it is less certain about future moves

–          …it is less sure where rates will go next

–          Core inflation has also remained tepid, at 1.8%, lessening the pressure for more rises

–          The so-called dot plot of rates forecasts by Fed officials now shows two quarter-point increases in short-term rates in 2019, down from three in the prior forecast.  Another single rate rise may follow in 2020…leaving the midpoint of the target range at 3.1% – the apparent peak of the rate-rising programme

–          The central bank trimmed its forecasts for growth next year to 2.3% from 2.5%, while leaving its unemployment prediction for 2019 unchanged at 3.5%

Investors push for 2030 end to coal-fired generation – Pg. 11

–          The world has already warmed by about 1C, largely due to emissions from the burning of fossil fuels.  Investor pressure is growing on the energy sector to take responsibility for its contribution to climate change

–          Big investors have stepped up their efforts in recent months, underpinned by the belief that institutional shareholders possess the greatest clout in pushing companies to change

Answer: (1) Comparing yourself to others (Prof Note: I do believe this can be healthy, to an extent.  For example, professionally in terms of skills and education.  Just needs to be done in a healthy manner.); (2) Creating unrealistic expectations of yourself (Prof Note: When I finally accepted I would never dunk a basketball, it was a relief! J); (3) Your social media obsession (Prof Note: Never understood this and I am NOT on Facebook); (4) Bad spending habits (Prof Note: I often think, “What am I really getting for this expenditure?!”); (5) Far of the unknown; (6) Living in the past; (7) Putting off a vacation (Prof Note: Travel, in my opinion, opens one’s mind and heart); (8) Your packed schedule (Prof Note: make time for the sunset(s).  You only get so many in your life.); (9) Unhealthy relationships (Prof Note: This should be expanded to professional); (10) Waiting for the perfect moment; (11) The need to be in control of everything (Prof Note: I have recently begun working with several HIGHLY qualified and respected individuals in modelling.  What has happened?!  The pro formas constructed have taken a giant leap forward.); (12) Relying on others to make you feel happy and fulfilled; (13) Avoiding getting out of the house (Prof Note: Sun on one’s face is a happy feeling!); (14) You need to have the best things (Prof Note: Be blessed and happy with what you have.  My broken iPhone with the cracked glass works just fine!); (15) Your hesitation to indulge (Prof Note: Sure, I’ll have that shot of vodka!); (16) Feeling sorry for yourself (Prof Note:  I think self-reflection is healthy…just do not let it bog you down); (17) Fear of failure (Prof Note: A great skill is learning to get back up!); (18) Grudges (Prof Note: I have debates with my peers about this.  I think grudges are healthy as some things, e.g. lying to students, are unforgiveable.); (19) Worrying what others think of you (Prof Note: I stopped cutting my hair when my second book was published to be the “crazy” author.  I perceive that I am treated differently, in a good way, in general.  People are more open to just starting conversations with me at random.); (20) Your disorganized lifestyle (Prof Note; I find that organization does breed happiness); (21) Controlling others (Prof Note: Embrace others and accept them for who they are.  If in a professional setting, state your peace and seek your happiness!); (22) Jealousy (Prof Note: Respect and admiration are healthy.  Find happiness in the success(es) of others); (23) Blaming others for your mistakes (Prof Note: Always take responsibility); (24) A yearning to fit in (Prof Note: This is one of the great things about Nevis.  Basically everyone is a wack-a-doodle and everyone is embraced for their originality.  Be yourself!); (25) Overanalyzing situations; (26) Friends who are not there for you (Prof Note: A close peer that was a Federal Guest of the prison system told me that one of the benefits of going to prison was it separated acquintances from true friends.); (27) Resisting change (Prof Note: I will admit that I resist, especially with technology.  I still believe, I fear this will bite me in the future, Facebook is a fad!); (28) Being afraid to be yourself (Prof Note: Try talking to absolute strangers in retail establishments and when out.  It is amazing the number of nice people that actually talk back. J); (29) Holding onto items you do not need (Prof Note: I am NOT getting rid of my sea containers!); (30) Avoiding your problems (Prof Note: I have been blessed with only a few MAJOR problems in my life.  However, when they have occurred I ran directly at them, full steam.  All were resolved to my benefit but only because I addressed them head on (and dedicated resources to their solutions)); (31) Worrying about missing out (Prof Note: Just because you were not at particular place, does not mean you cannot enjoy the stories about the experience told by friends and family!)

18 December 2018

Question: According to MSN: Money, what are 40 money habits that can leave you broke?

China economists dare to disagree with Xi’s vision – Pg. 3

–          Unlike the largely anonymous summer carping about Mr Xi’s elimination of term limits in March, which positioned him to be president for life if he chooses, in recent weeks economists have argued publicly whether the president’s rapid centralization of power over the past six years would enhance or construct the next phase of development

–          Despite the most repressive political culminate in Beijing since the 1989 Tiananmen Square massacre put Deng’s reforms on hold for three years, an increasing number of Chinese economists have dared to disagree openly with policies associated with Mr Xi

–          Edmund Phelps, a Columbia professor and 2006 Nobel Prize winner for economics, added: “China needs broad innovation from ordinary people with the government can’t help much with that”

–          Such arguments have seemingly been bolstered by slower economic growth in China and Donald Trump’s punitive tariffs on Chinese exports, which have depressed market sentiment and business confidence.  As China’s stock markets declined a further 8% over the past three months, falling share prices forced many private sector companies to sell shares pledged as collateral against state bank loans

UK’s student funding is overdue radical reform – Pg. 8

–          The aim of bringing more students into higher education, via loans repaid on future salaries, was sell intentioned.  But the poor design of the system has resulted in rising costs and questionable outcomes from some graduates

–          The office for National Statistics announced it will put the long-term costs of student loans on to the government’s books.  That means 12.3bn (sterling) will be added to the annual deficit – wiping out much of the Treasury’s fiscal headroom and potentially breaching the chancellor’s “fiscal mandate” to keep borrowing under 2%

–          Student loans are higher as a percentage of the UK’s GDP than in comparable countries, such as Australia

–          The ONS will now separate the UK’s loan book into two: loans that will be repaid will be counted as genuine government lending, while those to be written off will be counted as government spending.  This clarity is welcome, if overdue

US financial stocks slide into bear territory as growth worries intensify – Pg. 17

–          The S&P 500 financial sector index fell as much as 0.9% yesterday as volatile trading, leaving it down almost 21% form a late January peak

–          Although the US economy has remained in robust shape, the bond market has already begun to anticipate a weaker picture for both growth and inflation.  Central to banks’ fortunes is the yield curve, which illustrates the differences between short-term and long-term borrowing costs

–          The yield on the benchmark 10-year US government bond has fallen from 3.25% in early November to 287% while the drop in the yield on the two-year Treasury has been cushioned by expectations that the US Federal Reserve will tomorrow raise its official interest for a fourth time this year

–          The gap between two-year and 10-year Treasury yields this month hit its narrowest since 2007

Answer: (1) Your App addiction (Prof Note: small dollars add to large dollars); (2) Not checking your credit report (Prof Note: Look what happens to mortgage rates with lower credit scores); (3) Having wine with dinner (Prof Note: a soft drink is often $3.00); (4) Leasing your car (Prof Note: There are cases to lease but remember that equity is not being built); (5) Ignoring your 401(k) match (Prof Note: “Free” money); (6) Going out for lunch; (7) Using store credit cards; (8) Overdrawing your account; (9) Keeping your gym membership; (10) Accepting bad checks; (11) Not having health insurance, (12) Ditching your change; (13) Not checking in with your partner; (14) Smoking cigarettes; (15) Signing up for a Premium auto loan; (16) Falling for a bait-and-switch (Prof Note: A 50% sale still means one is spending!); (17) Not using a budget; (18) Making impulse purchases; (19) Carrying credit card debt; (20) Paying yourself last; (21) Drinking fancy coffee; (22) Not keeping an emergency fund; (23) Buying groceries without a list; (24) Not tracking ‘invisible’ expenses; (25) Letting FOMO get the better of you; (26) Paying for monthly subscription services; (27) Splitting lunch with a friend; (28) Not automating your payments (Prof Note: NOOOOO…pay all bills with checks on a set schedule.  This way one does not lose track of expenses); (29) Keeping up with the Joneses; (30) Increasing your standard of living (Prof Note: Fight the creep!); (31) Window shopping; (32) Assuming life will always be like it is today; (33) Not keeping track of your cash flow; (34) Not asking for a raise; (35) Your brand loyalty; (36) Going to happy hour (Prof Note When I worked for Booz*Allen my boss came to me one day stating that it would help my career as a “Boozer” if I attended more social functions.  I explained to him that while I was happy for the advice, on a $35,00/year salary, a drink at a bar was at the cost of affording dinner.  When he understood the consequences, he never mentioned again and apologized for being insensitive); (37) Using an out-of-network ATM; (38) Not planning for expected needs; (39) Neglecting maintenance; (40) Not allowing yourself some wiggle room