Tag: Prof Note

21 February 2019

 

Question: What are seven (7) surprising facts about depression, according to Healthgrades.com?

 

Japanese exports fall on China slowdown – Pg. 4

–          Japanese exporters slumped last month in the latest sign that economies across Asia are suffering because of China’s slowdown and uncertainty over the outcome of US-China trade talks

–          Exports from Asia’s biggest advanced economy fell 8.4% in January compared with a year earlier, the steepest decline since October 2016, with china the biggest culprit

–          …may prompt Asian central banks to keep interest rates on hold this year

–          Japan’s exports to china fell by 17.4% compared with a year earlier

–          China’s exports unexpectedly rose 9.1% year-on-year in January

 

Brazil plans rise in pension age to cut deficit – Pg. 4

–          Spending on pensions absorbs more than a third of federal tax receipts and is one of the biggest causes of a budget deficit equal to about 7% of GDP

–          Among other changes to the system – under which many public sectdor woerks can retire on full pay in their early fifties – the proposal sets a minimum retirement agefor both public and private sector workers of 65 for men and 62 for women, to be phased in over 12 years

 

Illicit Drugs – Pg. 7

–          The DEA estimates that Mexican heroin production increased 37% …in 2017

–          Border seizures of fentanyl, a powerful synthetic opioid produced in China and Mexico and increasingly mixed with heroin to make it more powerful, also rocketed 135% in 2017

–          (Prof Note: A few weeks ago I had a “Meth Head” jump into my car.  I was driving in Southern, MD, i.e. “Americana”, when a women with blond hair sprinted from the woods in obvious distress, arms waving as if she was being chased by her capture, to flag down the car for an emergency.  I stopped the car, unlocked the door and she leapt in.  Her yellow skin, missing teeth had not been visible in the 5 seconds I had seen her.  In panicked voice she had a crisis and needed to be taken somewhere.  Fearing for my own safety, I let loose a spate of loud words knowing one of us was getting out of the car in the next five seconds.  (note, I have a car that requires no key.  If I jump from the car, it is a 2,000lb paper weight.)  She leapt out and the next car coming picked her up.  What did I learn? NEVER pick anyone up regardless of an apparent emergency.  Call 911 and move yourself far enough from harms way.  Drugs have hit Americana!  Also, I confirmed the woman was a “Meth Head” as the head of the fire department showed me her mug shot and confirmed.)

 

Investors quaff US corporate debt in reaction to Fed policy pivot in January – Pg. 19

–          Corporate bond markets have staged their bets start to the year in two decades, roaring back from a bout of volatility after the Federal Reserve pulled off one of its sharpest policy U-turns

–          The strong start to the year comes after the Fed stunned markets in January, distancing itself from its December talk of another two rate-rises in 2019 and raising the possibility that the next move in rates could be down, rather than up

–          That shift – apparently prompted by the fierce market sell-off towards the end of the year – is prompting investors to funnel cash into bonds, whose fixed interest payments become more valuable if base rates flatline or fall

–          High-yield bonds have also benefited from a shift in sentiment away from the previously red-hot loan market, where typically lower-rated or already heavily indebted companies seek out financing

 

Answer: (1) Women are more likely to be depressed than men; (2) Your genes play a role; (3) You might not respond to the first treatment; (4) Talk therapy can work as well as medication; (5) Depression can cause hallucinations; (6) Magnets might relieve depression; (7) Children also get depressed

20 February 2019

 

Question: According to MSN: Lifestyle, what should one do if your loved one struggles with depression? (Prof Note: Everyone’s well wishes were incredibly meaningful to me regarding the loss of my peer (our peer) due to suicide.  While I did not know this person that well, I was honoured to be on his “list” of people to be notified of his passing.  At his wake I was touched and moved by the number of people that this individual had touched and moved.  A skill worth having is the ability to speak for 2 – 3 minutes about any individual in an extremely positive tone.)

 

Walmart sees year-end sales surge – Pg. 11

–          Walmart eased fears over the financial health of the US consumer yesterday, with the country’s largest retailer disclosing its biggest rise in domestic sales for the festive season in 15 years

–          …annual revenues rose almost 4%…

–          Footfall at Walmart stores rose only 0.9%, although those customers who did shop in store spent more, driving the average transaction value up 3.3%

 

France revels in sovereign debt ‘sweet spot’ as demand for 30-year deal soars – Pg. 19

–          France has ventured into the 30-year bond market for the first time in two years, attracting strong demand from investors seeking solid yields while central banks around the world seem committed to keeping rates low

–          …boon for European governments with a lot of debt to sell as investors are drawn to the additional yield on offer from longer dated bonds

–          France sold its new bond with a coupon of 1.5% – 50 bps below its last 30-year bond, which sold in May 2017 amid a relief rally after the election of Emmanuel Macron as president

–          By the start of this week, France had raised 14% of the debt it needed this year…Germany, by comparison, had raised 15%, Spain 18% and Italy 22%

–          Smaller neighbours are further ahead: Belgium, Austria, the Netherlands, Portugal, Finland and Ireland have all raised around one-third of their total annual funding needs

 

Answer: (1) Learn more about depression; (2) Express concern the right way (Prof Note: I have learned/am learning to embrace the pain of others.  Let them own it and acknowledge it…it is their pain); (3) Do not judge or criticize their behavior (Prof Note: remember that, for the most part, the only actions/behavior one controls is their own); (4) Encourage them to seek treatment; (5) Offer to help them plan for their first therapy visit; (6) Encourage them to stick with treatment; (7) Ask how you can help (Prof Note: I find this tricky.  Puts the responsibility on the wrong person.  Showing up is most important); (8) Offer to listen (Prof Note: Rather than “offering”, just listen); (9) Set clear boundaries (Prof Note: Another tricky issue…); (10) Point out the positives; (11) Watch for warning signs of suicide; (12) Make plans with them often (Prof Note: This can be tough as a depressed person can be a downer); (13) Practice Self-care; (14) Be patient; (15) Help them to reduce anxiety

12 February 2019

 

Question: According to MSN: Money, what are five (5) pieces of advice that cost someone thousands of dollars?

 

Global investors in record rush to China as hopes rise over US trade – Pg. 1

–        …betting the mainland market has bottomed out after a disastrous 2018 and anticipating that the US Federal Reserve’s dovish U-turn would boost emerging markets

–        …more positive outlook for US-China trade…

 

IMF chief economist supports Fed rate pause – Pg. 2

–        …flagged up a darkening picture in the euro area and China as she warned there may have been a contraction in world trade in December

–        …the shift in Fed policy had also “certainly helped” emerging market economies that had struggled with the tightening financial conditions over the past year

–        Last year, the IMF provided the largest loan in its history to Argentina, …$57bn…

–        One big question now is whether Venezuela might also need IMF support

 

Do leveraged loans pose a threat to the US economy? – Pg. 9

–        Leveraged loans, which are extended to corporate borrows with relatively high debt levels, carry more risk and pay more interest as the US Federal Reserve raises rates

–        They are secured with underlying collateral and when lenders line up for repayment, leveraged loans are usually given priority over lower rated bonds known as high yield credit.  That means there is some protection if the borrower goes bust.  Last year, which was generally tough, leveraged loans did better than most assets

–        The asset class has more than doubled since 2010 to more than $1tn at the end of 2018

–        Highly leveraged loan deals (when debt is more than five times earnings before interest, tax, depreciation and amortization) account for about half of new US corporate debt

–        That growth is partly a result of securitization.  Roughly half of investors demand today comes from packaging loans into collateralized loan obligations, or CLOs, and slicing them into different tranches of risk

–        Rising demand has shifted the balance of power from investors to borrowers, and contributed to a watering down of covenants embedded in loan agreements that traditionally protect investors

–        …about 25% of the leveraged loan market was considered “covenant-lite” before the financial crisis.  Now that figure is 80%

–        Leveraged loans probably won’t spark the next recession, but they will almost certainly deepen it, because they are an important source of corporate funding for deals and share buybacks

 

Exchange giants battle over new US oil benchmark – Pg. 19

–        Last year, exchange operators CME Group and Intercontinental Exchange introduced dueling futures contracts that track the price of West Texas Intermediate crude as delivered at the coast city

–        …growing status as an energy trading hotspot as US oil production breaks records, Texas refineries add capacity and exports of crude soar

–        At times, the price of oil at Houston disconnects from prices in the North Sea, Cushing or both, suggesting the new contracts could be useful to companies selling oil there.

–        Academic research has shown that new futures contracts are likely to fail unless they are substantially better at reducing risks than existing futures contracts,…

–        The new CMD contract is delivered at Houston terminals owned by Enterprise Products Partners.  Its rules require oil with gravity, or density, that measures within a narrow band of 40-44 “degrees”

–        The oil may contain no more than 0.275% Sulphur content and four parts per million of the metals nickel and vanadium

 

Answer: (1) Invest in cryptocurrency (Prof Note: How many classes did I warn about this?!); (2) Put it on a credit card (Prof Note:  I have mixed feelings about this.  I believe that everything should go on credit card but that the balance should not be carried month-to-month, i.e. this is a VERY expensive form of credit if carried.  However, one wants to benefit from the points and rewards); (3) Max out your retirement fund (Prof Note: I 100.0% agree that matching should be maxed out.  However, prudent planning must be done for the remaining.  401(k) can cost liquidity and cash is KING!); (4) Do not try and fight banking fees (Prof Note: I was literally in BB&T last week saying, “I cannot stand anything more than when a banker tells me, “NO”. J  Fees are theft, Interest is a cost of doing business!); (5) Keep your money where it is.  (Prof Note: Remember that capital has four dimensions that all participate in value: (1) Magnitude, (2) Timing, (3) LOCATION, and (4) Colour (currency)).

11 February 2019

 

Question: According to MSN: Lifestyle, what are ten (1) simple ways to support someone with depression? (Prof Note: I had a friend take his own life this week due to depression.  I am sad to lose my friend and sad that the world has lost a good person.  Depression is real.)

 

Congress talks ‘stalled’ over border force as cut-off looms – Pg. 2

–        Republicans and Democrats were bickering over proposed limits to the US border force yesterday just days before a deadline to avoid a second government shutdown this year

–        The US is still reeling from the record 35-day shutdown earlier this year, when Mr Trump refused to reopen the government unless Democrats agreed to $5.7bn in funding for a border wall.  The shutdown knocked billions of dollars off the US economy, and underlined the entrenched party divisions that are likely to continue for the next two years in the run-up to the 2020 elections (Prof Note: I grow tired of this “bickering” among our “leaders”.  Lock the doors, place chemical port-a-johns in congress, and lets see how long it takes to come to a resolution.)

 

Europe turns on spending taps as austerity comes to an end – Pg. 3

–        Economic thinking has shifted considerably since the early years of this decade, and is now comfortable with higher debt levels.  This is particularly true because the burden of servicing the debt has been falling as economic growth has improved

–        In a recent report on sovereign borrowing, the OECD said the balance between interest rates payable on government debt and the growth f advanced economies had “improved considerably and slowed growth in debt-to-GDP ratios in recent years”

–        With the aggregate deficit in the Eurozone projected to be running at 0.6% of GDP in 2019, compared with 5% in the US and the slowdown intensifying, the pressure for further fiscal stimulus is likely to mount

 

Private equity targeted by activists over prisons – Pg. 16

–        Private equity firms that try to profit from American prisoners have become the latest target of campaigners trying to stop public investment funds backing controversial businesses (Prof Note: Is this not the entire premise of the show, ‘Orange is the new black.’?)

–        State pension boards are among the biggest clients of private equity funds, a fact that activists are increasingly using to gain leverage over investment firms and score high profile victories against business practices they deem unfair or unethical

 

Answer: (1) Avoid telling them to “Just think positive”; (2) Try reaching out first (Prof Note: I read an article that stated telling someone, “Let me know what I can do.”, places the responsibility on the wrong person, i.e. the person in need of help.  Instead, like in my case, I called two days after my friend’s passing and showed up at his wife’s house with her permission.  I did not bring anything, did not really know what to say, but I made a point of being there.  I hope I helped.); (3) Validate their experiences (Prof Note: I try and acknowledge other’s perspectives as their own.  They may not be my perspective BUT they are theirs and deserve respect); (4) Be sensitive with what you talk about (Prof Note: I am working on listening to others more and talking less.  I am working on finding happiness in the successes and accomplishments of others much more than my own.); (5) Stay in touch and check in regularly (Prof Note: During my litigation case where my family was murdered my friend Bob R checked in weekly, if not more, with a, “Are you ok?”.  I always said, “Yes,” despite not being “ok” but often during that dark periods those random texts were a clear light in all the darkness); (6) Make sure they are getting enough sleep; (7) Give as continuous support as you can; (8) Learn about depression (Prof Note: This is a 2019 goal of mine.  Depression is real and I believe in existence in more people than we realize); (9) Encourage them to seek professional help; (10) Take care of yourself (Prof Note: I truly believe that the sun on one’s face brings happiness, regardless of anything else.  A walk, a bike ride, a slow jog, any movement is happiness.  Try and move about.)