Tag: Prof Note

13 July 2018

Question: According to MSN:Money and The Motley Fool, what are 10 signs you need to quite your job?

China and the world – Pg. 9

–          …the Communist party decided last year to abolish presidential term limits, thus allowing Xi Jinping to remain as head of state for lfe, ….

–          Using third-party outlets to mask party content has become such a common tactic that party officials have even given it a name – “borrowing boats to go to sea”, meaning to use another’s resources to fulfil one’s goals (Prof Note: Sort of like Western finance’s method of doing a deal with no money?)

–          China News Service is controlled by the Overseas Chinese Affairs Office, a key organization behind the Communist party’s influence operations abroad

–          Since 2003, China News Service has hosted annual conferences in China to which hundreds of editors from overseas media organizations in print, television and radio are invited

–          Independent Chinese-language writers find it increasingly difficult to publish work not sanctioned by party-backed media…

–          Beijing’s increased global economic clout has put additional pressure on Chinese-language media abroad

–          In some cases, the threats against reporters for non-compliance are less than subtle

Morningstar targets $19tn market – Pg. 13

–          Morningstar is to go to battle with its clients for a greater slice of the $19tn US mutual fund market as the investment research and ratings provider prepares to launch a range of in-house products

–          The group’s “managed portfolio service”, which enables financial advisers to outsource investment decisions to Morningstar, already has $44bn of assets mostly overseen by external fund managers

–          Instead of Morningstar selecting external funds to include in its managed portfolio, it will rely on the in-house mutual funds as the building blocks

–          Morningstar said its mutual funds would not be qualitatively rated by its analysts but they would be eligible for an in-house, algorithmically assigned star rating after a three-year performance record, ….

–          Having started life as a boutique research provider that compiled data on 400 mutual funds three decades ago, Morningstar now employs 5,000 staff and overseas more than $200bn of assets, while publishing data on 233,000 mutual funds

Global regulators demand banks must abandon reliance on scandal-hit Libor – Pg. 21

–          Global markets regulators issued stern warnings yesterday that banks must speed up their plans to abandon Libor in favour of “risk-free” reference floating interest rates

–          …authorities raise pressure on banks to find an alternative to Libor, which sets the cost of unsecured borrowing for a variety of periods, usually over one, three, and six months

–          Authorities argue the four-decades-old benchmark no longer reflects actual bank funding activity and are also seeking to restore public trust after a series of manipulation scandals.  After 2021, banks will no longer be required to submit rates that are used in compiling Libor

–          Around $170tn in interest rate swaps are based on Libor

Answer: (1) You’re overwhelmingly bored (Prof Note: Come on…find something to do and build those resume bullet points for the next job!); (2) You’re underappreciated (Prof Note: Find appreciation and meaning in family and friends!  It is dangerous and very Western to find it at a job that could be gone tomorrow!); (3) Your manager isn’t helpful (Prof Note: Grow up!  Build your resume and leave!); (4) Your coworkers aren’t supportive (Prof Note: Figure out if it is them or you.  If you, time to go!); (5) Your work-life balance is nonexistent (Prof Note: There better be a GREAT reason you are missing sunsets!); (6) You don’t like the company culture; (7) Your health is suffering (Prof Note: Unless it is your company, it simply is not risk loss of health!); (8) You’re in a dead-end position (Prof Note: Then…do the hustle!); (9) Your compensation stinks (Prof Note: I cannot stand it when people say this!  Then why did you accept the position?!  When you outgrow the position, and you are not recognized, leave!); (10) You no longer care about your performance (Prof Note: This means your self-esteem is gone or has been taken.  Time to go)  (Prof Note: I heard an expression on the radio from a very disgruntled employee that apparently quit in a “colourful” manner.  His quote, that I absolutely loved (I am not saying to resign in colourful ways…only that I LOVE the quote), “Let the burning bridges light my way!”  An instant Classic!!! J)

List-Serve Story:  I have always wondered what happens at an airport when caught with a gun in your bag.  Well, see below.   Now we know… (Experience from a list-serve reader)

Pgh Airport

Today while waiting in the TSA Pre-Check line a man, a few individuals in front of me, had a gun in his luggage.  Then the gun was discovered the man was quite “vocal” about his rights and that TSA had no authority to take his weapon.  Almost instantly two PA state police officers with “large” rifles appeared (seemingly from nowhere too).The man was promptly “lifted” in the air (from my vantage point) and escorted to a further security checkpoint  After the delay, at the TSA pre-check, following that incident it appeared from my novice gun user (pro Second Amendment though) that the hand gun was completely taken apart.  One could see pieces of the gun strewn throughout the security table – and so the July 4th travels began (not my definition of “Independence” Day)

12 July 2018

Question: According to CNBC, what are three phrases that a boss uses when they want to fire you?

Corporate America feels trade war heat – Pg. 2

–          …US multinationals warned its impact would outweigh the benefits of tax cuts and some Republicans voiced fears about the political fallout

–          …planned implementation of tariffs on a further $200bn of imports from China….

–          The prospect of a sustained trade war also shook commodities markets, …

Media fare badly in US sexual harassment study – Pg. 4

–          More than four in 10 women and one in five men working in US media have been sexually harassed by a colleague, …higher portion than in white-collar workplaces overall

–          …across all occupations 34% of women and 13% of men had been harassed at work.  Nearly three quarters of women and 59% of men were harassed by someone more senior

–          The incidence of harassment in media – which includes art and design, public relations and advertising, broadcasting, entertainment and publishing – is much higher than in the US finance and legal sectors.  In finance and insurance, 26% of women and 7% of men reported having been harassed, and in legal services 22% of women and 11% of men

–          The second and third highest incidence of harassment of women were reported by workers in technology – which has experienced its own series of harassment scandals, including at Uber – and in consulting and management

–          (Prof Note: My experience in corporate America is that I support these numbers anecdotally as I have not work in some of these industries.  However, my experience and observation is that these harassments are caused by a few individuals that are protected and/or tolerated by senior management)

Eurozone banks trapped in bear market territory amid anxiety over profitability – Pg. 21

–          Eurozone bank stocks are firmly trapped in bear market territory with investors concerned about the impact of escalating global trade tensions and anxiety over the sector’s profitability

–          All but three of the 27 members of the Euro Stoxx banks list, which lost 1.7% yesterday, were in negative territory

–          Europe’s bank index has fallen 22% from its January high and, with an average price-to-book ratio of 0.7, high-lighted the scale of investor concern over the health of balance sheets

Answer: (1) Could you put that in writing?; (2) I think we should bring HR into this; (3) You’re not a good fit

11 July 2018

Question: According to MSN Money, what are 50 ways that you are throwing money away?

Eurozone house price pressure builds – Pg. 2

–          House prices across the Eurozone are rising at the fastest rate since before the global financial crisis, forcing the region’s banks to squeeze the supply of credit to would-be mortgage holders

–          …house prices in the 19-member currency area rose 4.5% in the year to the first quarter of 2018 – a level last seen in early 2007

–          Prices increased by double digits in Latvia, Slovenia, Ireland, Portugal and Slovakia

–          With the ECB almost certain to keep its benchmark interest rate at a record low of zero for at least another year, authorities across the region have had to introduce other measures to tighten bank lending

–          In Ireland, where prices have risen 12.3% over the past year, the central bank at the beginning of 2018 imposed a stricter cap on the size of loans banks can make based on borrowers’ incomes

–          In Portugal, where prices are up 12.2%, the central bank will from July introduce a series of caps based on people’s incomes and the value of a property in proportion to the borrower’s deposit

Kavanaugh faces confirmation bruising – Pg. 2

–          Mr Kavanaugh was born in the nation’s capital in 1965

–          …Yale University and Yale law school

–          ….solid conservative who has ruled against government departments such as the EPA and said the structure of the Consumer Financial Protection Bureau was unconstitutional, as it restricted the president’s ability to fire the director

–          He is known as a defender of presidential authority, with a broad view of the government’s power to detain suspected terrorists and prosecute them in military commissions as opposed to federal courts

Thai children rescued from flooded cave in ‘mission impossible’ – Pg. 4

–          (Prof Note: I am happy that no harm came to the children.  However, the rescue did cause one fatality.  What I want to learn is the fate of the adult that lead the children into harm’s way and caused a death!)

Chinese policymakers keep debt investors guessing on property developer issuance – Pg. 19

–          China’s top economic planning commission is giving global fixed income investors a headache on property developer debt

–          Some $24bn of Chinese property developer debt will mature in 2019, up from $6.5bn this year, …

Answer: (1) Running up balances on high-interest credit cards; (2) Throwing money away on layaway; (3) Trying to time the stock market (Prof Note: dollar cost average!); (4) Ignoring refurbished goods (Prof Note: I do this…I do not want someone else’s problem(s); (5) Closing the box on ‘Open Box’ savings; (6) Forgetting your company’s employee stock purchase plan (Prof Note: Yes, there can be advantages if able to purchase at a discount BUT this ignores diversification); (7) Paying full price for gas (Prof Note: I keep a spreadsheet of gas costs!); (8) Paying full price for anything; (9) Paying sales tax; (10) Not having a shopping accountability partner (Prof Note: ???); (11) Not shopping ahead for next year (Prof Note: Look for me in in the stores AFTER holidays…I am the big buyer!); (12) Impulse shopping; (13) Missing out on matching contributions (Prof Note: Never give up free money); (14) Lacking a clearly defined plan (Prof Note: Fail to plan; plan to fail?); (15) Tapping your retirement fund for extra cash; (16) Spending too much while eating out (Prof Note: water instead of the $3.00 ice tea); (17) Not inflating your tires properly; (18) Confusing needs and wants; (19) Giving to wasteful charities (Prof Note: My Foundations specifically focuses on educational pursuits); (20) Gambling; (21) Neglecting new customer specials; (22) Skipping happy hour specials; (23) Not clipping grocery coupons; (24) Skipping the car warranty; (25) Leaving unused electronics plugged in; (26) Grocery shopping when you’re hungry; (27) Ignoring in-store savings apps (Prof Note: Did not even know these existed); (28) Making pricey credit card balance transfers; (29) Overlooking generics; (30) Stocking up on bottled water; (31) Paying high shipping fees; (32) Paying checking account fees (Prof Note: My bank FEARS me when it comes to fees!); (33) Neglecting your gym membership; (34) Missing Post-holiday sales (Prof Note: Not me…I am there!); (35) Buying gift cards at a store or restaurant; (36) Not signing up for email offers; (37) Doing last-minute grocery shopping; (38) Not suing all your warehouse club benefits; (39) Missing bill payments; (40) Choosing valet parking to save time (Prof Note: I cannot stand a lack of parking and avoid restaurants without an easy lot to park); (41) Buying food at sporting events (Prof Note: How about attending sporting events?  Ridiculous costs!); (42) Paying gym signup or initiation fees; (43) Parking at hotel restaurants (Prof Note: I remember pulling up to a Trump hotel and the valet parking was $50.  I was on an expense account.  I flipped out and asked where the closest parking garage was located.  They valet said, “Give me $20.  I will park it right here in front and it will wait for you.”  I gave him $20); (44) Skipping the dentist; (45) Skipping your annual doctor visit; (46) Not shopping around to fill your prescription; (47) Not taking advantage of company wellness benefits; (48) Buying products at the salon or spa; (49) Ignoring rebate offers; (50) (Prof Note: I missed one…sorry)

10 July 2018

List-Serve Good Story: Often the stories are negative but this one was/is positive.  I was in South Beach looking at real estate and left my laptop in my hotel room at The Betsy.  When I arrived at the airport and it was not in my bag I was 100.0% convinced it had been stolen.  Never in my life had I forgotten my laptop anywhere.  Two positive results: (1) When the panic subsided I realized the laptop was nothing but a hunk of plastic.  Two years ago I had had my IT Manager centrally locate all data/information on a remote server making my laptops/desktops (yes, I still have desktops) dummy machines.  All my data was safe, i.e. no panic was necessary.  (2) After calling the hotel, I discovered The Betsy had my laptop and FedExed it back to me the next day.  Great customer service.  What did I learn?  I learned the importance of not carrying data and having it not just backed-up to a server but located on a server.  While I realize there is expense involved with owning and maintaining and backing up servers, it is/was worth the expense at that very moment and going forward.

Question: What are 10 tips to manage your finance s while you job hunt, according to credit.com?

Macron pledges improvements in welfare – Pg. 4

–          …plans to merge 40 different retirement schemes into one by 2019

–          He defended his decision to slash taxes for the wealthy and entrepreneurs at the beginning of his term, …

UK Economy – Pg. 7

–          In 2016, output per British worker lagged behind every G7 country except Japan.  The gap with the US stood at 27.3%.  The parallel often used is that a French or German worker could knock off on a Thursday having churned out as much as his or her UK counterpart would manage to produce in a full working week

–          …UK productivity fell in the first three months of 2018 from the previous quarter

–          One hypothesis for the lag is that UK managers are under-trained and under-valued

–          …when Harvard Business School….surveyed how well or poorly companies were run, they concluded that US companies were “the best managed in the world”.  US managers were “ruthless at rapidly rewarding and promoting good employees and retraining or firing bad employees”…

–          The most effective management tools….include “continuous improvement”, a way of standardizing and streamlining work processes that many big western companies started copying from efficient Japanese manufacturers as long ago as the 1980s

–          Other simple techniques that could help companies produce more from what they put in include setting goals and encouraging workers to meet them, conducting performance reviews or sending more people for training

CIC posts record profits but reins in deals – Pg. 16

–          The sovereign wealth fund China Investment Corporation posted record-high profits for 2017 yesterday, but new data show it has slowed its acquisition activities in 2018 after spending tens of billions of dollars overseas during the past two years

–          CIC, China’s top state investment vehicle, was launched by the central government in 2007 to put to work the country’s rapidly growing foreign reserves.  It has quickly become one of China’s largest investors with $941bn in total assets at the end of last year and major holdings in overseas equities and direct investments in companies

–          The profits were boosted by a 17.6% net annual return on overseas investments, nearly trebling the return in 2016

–          CIC’s global portfolio was composed of 43.6% publicly traded equities at the end of last year, of which 52% were based in the US

–          About 39% of the portfolio was in alternative assets, such as hedge funds, private equity, real estate and direct investments into companies.  Fixed-income investments accounted for another 16% of the portfolio

–          Over the past two years the US has made it more difficult for Chinese companies to invest in technology and financial companies

Answer: (1) Figure out your current financial situation (Prof Note: This is critical to understand at all times); (2) Create a budget (Prof Note: One must always have a budget, else expenses will become unbridled); (3) Stick to your budget (Prof Note: Why else have a budget?); (4) Separate your wants from your needs (Prof Note: This is often difficult.  More discipline will mean more $$$); (5) Shop cheap (Prof Note: Look for me in Ridge and you will find me at Dollar General!); (6) Use credit cards with caution (Prof Note: Yes, use discipline but also use point-providing cards for everything); (7) Find things to do that are fun and free (Prof Note: Absolutely!  Willy, 1962 Little Willy, and I love our trips to the dump and to town.  Sunsets, cool breezes, slow jog, etc.  All are free and enjoyable); (8) Consider rent free living (Prof Note: Economize); (9) Explore freelance work opportunities (Prof Note: a.k.a. side hustle); (10) Don’t get desperate (Prof Note: Be selective and do not take less than what you believe you are worth.  However, be realistic and seek advice from senior people and listen to them on what they believe you are worth in the marketplace.)