Pocket Change

October 2002:

• Feature Article
• Financial Planning 101
• Client Questions?
• Events
• Tampa Bay Sales Professionals

Feature Article:

Market Summary

 September once again was not a good month for the market.  The Dow was down over 12% and the Nasdaq composite down nearly 11% and is near a six year low (WSJ 10/4/02).  The big slide was in the last half of the month going into October on a negative note. 

One of the major issues facing the market is the threat of US military action in Iraq.  The possibility of war is having a negative impact on the market.  If the UN does send in inspectors as has been agreed, it should help settle this issue in the short term.  However if inspectors are not sent this will put more pressure on the possibility of military action.

The economic recovery seems to be very soft.  The Federal Reserve kept rates unchanged at the September 24^th meeting.  Unemployment remains high and consumer confidence continues to decline.  There have been earnings warnings from several major companies as we enter the third quarter earnings announcement period.

The US stock market remains weak, but remember it is controlled by emotions especially in the short term.  The market has been weak since its August peak, and a short rally would be normal.  But even if we rally back to the August high at 9053, this market will continue to be weak.  But if we drop below recent lows then we believe the bear market will get its second wind.  It’s too soon to try to pick the bottom, there’s still downside risk.

This bear market is sometimes explained as reverting to the mean, so after such a huge bull market in the late 90’s,  it is taking a long and significant bear market to get  back to the historical market averages.  The long-term historical average of the entire market is around 12%.   But remember some sector always takes leadership of the market by out performing the other sectors.   This market leadership rotates between growth and value, large cap and small cap, and domestic and international.  Although leadership is anything but clear right now, it will emerge down the road.

Financial Planning 101:

What is the Best Investment you can make?

What makes a great investment?  Is it one that has a long-term stable history providing strong earnings and especially growth in earnings, and if it provides a dividend that can also be a big plus?  So what type of investment do you believe provides this growth; Real Estate, Stocks, Bonds, Mutual Funds, Art, Collectables?   Well, I guess it is up to everyone to decide for himself or herself, but I believe the best investments I have ever made were in myself, more specifically my education.  I have three degrees and I have paid for professional training many times.  The overall return on these investments has made all my other investments possible.

Liberate yourself by investing in yourself; whether it is in a formal education or professional training, these can be some of the best investments you’ll ever make.  It provides the freedom for you to do all the things you want.

Since this is Financial Planning 101 I would be remiss if I didn’t point out that the return on these personal investments compound over time as your ability grows to increase your wages.  Therefore you should consider protecting this income stream in case of a catastrophe.  Disability Insurance and Life Insurance can help provide for this income stream, should you become disabled or prematurely die.   This is for someone who wants to provide for him or herself, and not be burden to someone else, in the case of disability or provide for their loved ones in case of premature death.  Insurance is something that most people don’t like to think about, but it provides the base for risk reduction in your personal financial plan.

If you have any questions or would like to know more about insurance, please call Buck Orr at 813-969-2767 or email him at hborr@tampabay.rr.com .

Client Questions?: 

In the next issue, I will utilize this section to answer any questions or concerns you may present.  Please email me with suggestions: hborr@tampabay.rr.com .

Events: 

October Events

Business by the Book

In today’s competitive and confusing business environment, we are looking for answers to the tough question we face every day.  Crown Financial Ministries has compiled God’s business principles into a unique one-day seminar called “Business by the Book,” This seminar will be presented on October 24^th at Davis Island Baptist Church, 97 Biscayne Avenue, Tampa, Florida 33606. 

Especially designed for busy executives, “Business by the Book” is wonderfully fast paced, practical and highly interactive.  Using case studies and lively question and answer sessions, you’ll discover that the Bible addresses and business dilemma you can think of.

This seminar is a catalyst God can use to transform your entire business and career.

Tampa Bay Sales Professionals

Tampa Bay Sales Professionals meets the last Wednesday of the month, except November and December at the Centre Club.

October’s meeting features Mark Fitzgerald who owns The Sandler Sales Institute.  Mark is a great sales trainer and motivator.  I would recommend all sales people and business owners attend this meeting at the Centre Club on Wednesday, October 30^th.

 One of my “Best Investments” I talked about above was with Mark.  I recommend his sales training program, The President’s Club.

If you have any questions on these events please call Buck Orr at 813-969-2767 or email him at hborr@tampabay.rr.com .