Tag: Prof Note

6 March 2019

 

Question: According to MSN: Money, what are 20 ways to improve your chances of getting a job?

 

China lifts defence spending as costs rise – Pg. 4

–          China will increase its defence budget by 7.5% …this year…

–          The rise to $179bn continues 25 years of increases that have made China the biggest military spender after the US, which will spend $686bn on defence this year.  Last year the Chinese budget rose 8.1%

–          As part of the overhaul, Beijing is downsizing its ground forces, upgrading the rocket and missile forces and creating an electronic warfare branch known as the Strategic Support Force

–          This year’s budget increase is in line with single-digit annual increases since 2016, but contrasts with average jumps of more than 12% a year during the preceding decade

 

Fears over forex trading going bump in the night – Pg. 21

–          Flash crashes are becoming a fact of life in late-night currency trading, and while regulators are poring over what lies beneath them, bankers say the changing structure of the industry means further slip-ups are inevitable

–          Sterling’s sudden 10% slump over just 40 seconds in October 2016, meanwhile, prompted close examination from the BoE

–          The problem is that the exchange rates struck in these incidents are not scrubbed from trading systems

–          They stand, which means companies’ and investors’ hedging contracts or orders can be triggered, sometimes to their detriment.  In a worst-case scenario, such violent moves could threaten financial stability.  But few are proposing any sort of fix

–          The world’s foreign exchange markets do not open or close through the working days of the week.  Instead, they operate continuously from Monday to Friday.  Over that long stretch, the start of the global trading day has always been very quiet

–          The slow overnight trading period is reflected in the cost of trading

–          It is becoming increasingly clear, however, that as machines have started to take over from humans, this sleepy period has become a perilous time

–          Lower numbers of human traders trained at spotting and defusing unnecessary market shake-ups clearly play a role but the nature of their replacement also matters

–          Computer-driven algorithmic trading firms tended to pull out of the market when volatility unexpectedly spikes…

 

Answer: (1) Dress the part (Prof Note: True but also be yourself); (2) Research the company and role (Prof Note: When I was interviewing, i.e. 90s, 90% of the interview was HR telling me about the job.  Of course this was really pre-internet); (3) Prepare insightful interview questions; (4) Show up on time (Prof Note: I recommend showing up 10 minutes early.  If you show up to early it can stress the interviewer.  I use to get so angry when people would stop by my office telling me someone was waiting in reception for me and they were an hour early.  I had calls and meetings!); (5) Know your interviews (Prof Note: With Linked-in and online profiles there is no reason not to know your interviewer  but do NOT stalk); (6) Smile and be courteous; (7) Be careful of what you say and do while waiting (Prof Note: I always received an email/call from reception about candidates.  Were they hitting on the receptionist?  Were they wearing goofy socks?  Were they inapproporiate?); (8) Ask for the job; (9) Prepare for the ‘Weakness’ Question (Prof Note: I tire of this question.  Here is the answer, “My writing must be more succinct.  While I have been told it is excellent, the more I can communicate in business with the least amount of words we all are!”  ‘nough said, say that!); (10) Talk about the value you’ll add to the company; (11) Stay focused; (12) Sound confident; (13) Do not fidget or bite your nails (Prof Note: Do not look at your phone.  Do not wear a watch and look at it); (14) Pay attention to your voice and tone; (15) Explain why you are switching jobs in a positive manner (Prof Note: While it may be accurate it is perhaps best not to say, “I have decided to let the light from the burning bridges guide my way!”  (gosh I wish this was my quote!)); (16) Prove that you fit the company culture; (17) Connect with the interviewer; (18) Be interested in the interviewer; (19) Thank your interviewers; (20) Follow up (Prof Note: Also, do NOT give references that could/may have a fiduciary duty to indicate you are looking for a job.  This, as a person doing references, put me in a tight spot when a person I called for a reference mentioned this could be an issue.  It was awkward and uncomfortable for me.)

5 March 2019

 

Question: According to seven (7) dumb mistakes that cost homebuyers tons of money?

 

Investors urge debt-bloated US companies to shape up – Pg. 19

–          Growing debt piles have fed fears among investors that if companies do not start to get a grip on their borrowing, worsening economic conditions could imperil their ability to fund themselves.  That could potentially send credit ratings even lower, into the junkyard of “high yield”

–          With borrowing costs low, companies have used debt to buy back stock and pay higher dividends.  But as attention turns to reducing leverage on balance sheets, analysts warned that some of the equity-friendly activity could slow

–          …some companies rated triple B- the lowest rung of investment grade – …

–          High-yield bond investors are also mindful of the risks of these companies failing to reduce their debt and potentially being downgraded further, especially if the economy begins to slow more quickly than expected

 

Chinese stocks rally as congress pledges stimulus measures to combat slowdown – Pg. 19

–          Chinese stocks surged to a nine-month high yesterday as the country’s annual legislative session got under way and investors anticipated more measures from Beijing to combat a slowdown in growth for the world’s second-largest economy

–          The latest leg higher for Chinese equities also follows on the heels of MSCI’s decision to quadruple its Emerging Markets index’s exposure to companies that are listed in mainland China.  The decision will compel passive investors to increase their exposure to reflect the benchmark, which is tracked by some $1.9tn of assets globally

 

Answer: (1) Ignoring your credit score; (2) Not getting preapproved for a home loan; (3) Falling for the wrong type of loan; (4) Going without an agent (Prof Note: One of the lessons I have learned in life, when negotiating contracts, always place an expert, that you are paying, between you and the counter party.  It makes life so much easier and more pleasant.  Also, when the right expert is hired, they will pay for themselves in lower transaction costs); (5) Buying based on emotion; (6) Skipping an inspection; (7) Forgetting to have backup plan

4 March 2019

 

Question: According to MSN: Money, what are the ten (10) golden rules of retiring rich?

 

Portugal premier warns on protectionism – Pg. 2

–          Portugal’s prime minister has warned European partners against misusing new security procedures for screening Chinese investments, saying it could lead to the continent becoming more protectionist

–          The European Parliament last month approved new regulations for screening non-EU investment, amid concerns that China and others are seeking to buy up sensitive technology and infrastructure, or to use investments and contracts to conduct industrial and military espionage

–          Chinese groups have pumped billions of euros into Portugal since the financial crisis.  China Three Gorges owns 23% of Energias de Portugal, the country’s main power utility…

 

Is social status still important at a certain age? – Pg. 14

–          …future life would contain two less things: the first was money…

–          The second loss was harder to prepare for.  My old job came with an unreasonably high level of status

–          …the low status of teachers is one of the reasons they are in such dangerously short supply, ….

–          Becoming a teacher in your 50s, especially when you’ve had a certain amount of success doing something else, seems to be quite different from becoming one in your 20s

–          (Prof Note: The difference, I have found, between the West and the rest of the world is in the West, Status and Position are identify.  The issue with both, when they are derived from an employer, is that neither are “owned”, i.e. they can be lost/taken at any moment.)

 

The allure of financial tricks is fading – Pg. 19

–          …academic research shows that the share of revenues coming from financial relative to non-financial activities in US corporations began to climb in the 1970s and then increased sharply from the 1980s onwards.  This mirrors the rise of finance in the economy itself

–          ….the fact that the Fed was forced into a U-turn by choppy markets is another sign of too much financialization.  Easy money has become a morphine drip that too many companies and investors can’t seem to do without, even though we are nearly 10 years into an economic recovery

–          In fact, low interest rates have papered over myriad political and economic problems not just for 10 years but for several decades.  Total financial assets are now more than triple the size of the real economy.  The corporate bond market is now worth $13tn – twice as much as in 2008

–          Debt is, of course, the lifeblood of finance.  But it is also the biggest indicator of future crises

 

Answer: (1) Spend less than you earn; (2) Start saving early; (3) Make up for lost time; (4) Do not leave free money on the table; (5) Minimize your taxes; (6) Take a little risk; (7) Stay informed about your investments; (8) Break free from the herd; (9) Work longer; (10) Maximize your income potential

2 March 2019

 

Question: What is the latest sport to have a top player suspended for doping with synthetic testosterone?

 

How income inequality affects our mental health – Pg. 8

–          …almost 25% of the US population has suffered from mental stress, while in Australia, the UK and Canada the level hovers around 20%.  In Japan and Germany, the figure is under 10% – well below the US

–          An economist might point to differing commercial incentives: the US, where private sector companies make money by selling antidepressant drugs, there are profits to be made increasing the share of people saying they suffer from “stress” or “depression”

–          …authors show the correlation between mental health and income inequality, with Japan and the US on opposite ends of the chart on both counts

–          They also show a high correlation between patterns of income inequality and problem gambling, childhood behavioural problems, and “self enhancement bias”

 

MSCI hands Chinese stocks a bigger global role – Pg. 13

–          MSCI, the leading equity index provider, took its biggest step yet to integrate China’s domestic stock markets with international capital yesterday in a move that could see an estimated $125bn flowing into the country’s equities this year

–          China’s weighting in the MSCI’s flagship emerging markets index, tracked by $1.9tn of funds, would rise to 3.3% by November from the current level of 0.71%, …

–          The move underscores how China’s government – which aggressively pushed for the increased weighting – has opened its capital markets in spite of growing political and trade tension with the US

–          Chinese stocks listed offshore in Hong Kong and the US already feature broadly in the MSCI Emerging Markets Index with a 31% weighting.  The importance of MSCI’s latest decision is that it creates a stronger link between the domestic Chinese stock market – the second largest in the world – and international capital

–          By November this year, the total weighting in the MSCI index for offshore and domestic Chinese stocks will be about 34.3% – by far the largest country weight

 

Answer: Bridge (Prof Note: I am NOT joking.)