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Inflammation…“Set Afire”

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The word “inflammation” traces back to the Latin for “set afire.”

Chronic inflammation plays an important role in the development of many diseases. Mounting evidence suggests that inflammation is a common underlying cause of major degenerative diseases. The four leading diseases — coronary artery disease, diabetes, cancer, and Alzheimer’s — may all be enabled by inflammation.

In some conditions, like rheumatoid arthritis, you feel heat, pain, redness, and swelling. But in other cases — like heart disease, Alzheimer’s, and diabetes — it’s not so obvious. If you didn’t go looking for it with tests, you wouldn’t even know it’s there.

Inflammation actually is good in the short run. It’s part of your immune system’s natural response to heal an injury or fight an infection.

But in the long-term, if inflammation becomes a long-lasting habit in your body, that can be bad for you. Long-term, or “chronic,” inflammation is seen in many diseases and detrimental metabolic conditions.

Inflammation can lead to heart attack

Inflamed arteries are common among people with heart disease. Some researchers think that when fats build up in the walls of the heart’s coronary arteries, the body fires back with inflammatory chemicals, since it sees this as an “injury” to the heart. That could trigger a blood clot that causes a heart attack or stroke.

Inflammation is connected to diabetes

Inflammation and type 2 diabetes are linked. Doctors don’t know yet if it causes the disease. Some experts say obesity triggers the inflammation, which makes it harder for the body to use insulin.

Inflammation is tied to Alzheimer’s

Chronic brain inflammation is often seen in people with this type of dementia. Scientists don’t yet understand exactly how that works, but inflammation may play an active role in the disease. Experts are studying whether anti-inflammatory medicine will curb Alzheimer’s. So far, the results are mixed.

Regarding Rheumatoid Arthritis does damage

Regarding Rheumatoid arthritis, the immune system attacks your body’s joints, causing inflammation that can harm them — and even the heart. Symptoms include pain, stiffness, and red, warm, swollen joints.

Vitamins, minerals and foods to combat inflammation response

  1. Vitamin A – it boost your immune system and guards against infectious diseases, thus reducing inflammation.
  2. Bromelain – in pineapple, this powerful enzyme fights inflammation and boosts your immune system
  3. Capsaicin – in chili peppers, it stops a group of proteins that control your body’s response to inflammation.
  4. Curcumin – found in turmeric, it is known for its natural antioxidant and anti-inflammatory properties. Studies show curcumin helps with certain conditions, including arthritis, inflammatory bowel disease, and fatty liver disease.
  5. SAM-e – It might sound like the name of a friendly robot, but it’s short for a natural compound in your body. Studies show it might control inflammation and may work as well as mainstream treatments for osteoarthritis.
  6. Upgrade Your Diet – Refined carbohydrates, red meats, and fried foods raise inflammation in your body. Instead, you should consume inflammation-fighting fruits, vegetables, nuts, beans, and fish.

Finally, get enough sleep, since when you don’t get the sleep you need, your body may kick inflammation up a notch. Your nightly sleep goal should be 7-9 hours every night. Aim for both quality and quantity.

References:

  1. https://www.health.harvard.edu/staying-healthy/inflammation-a-unifying-theory-of-disease
  2. https://www.webmd.com/women/ss/slideshow-what-is-inflammationhttps://www.webmd.com/women/ss/slideshow-what-is-inflammation
  3. https://www.webmd.com/vitamins-and-supplements/ss/vitamins-supplements-fight-inflammation

The Elephant Rope

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“Whatever Your Mind Can Conceive and Believe, It Can Achieve.” – Napoleon Hill, “Think and Grow Rich”

A gentleman was walking through an elephant camp, and he spotted that the elephants weren’t being kept in cages or held by the use of chains.

All that was holding them back from escaping the camp, was a small piece of rope tied to one of their legs and secured to a stake.

As the man gazed upon the elephants, he was completely confused as to why the elephants didn’t just use their strength to break the rope and escape the camp. They could easily have done so, but instead, they didn’t try to at all.

Curious and wanting to know the answer, he asked a trainer nearby why the elephants were just standing there and never tried to escape.

The trainer replied;

“when they are very young and much smaller we use the same size rope to tie them and, at that age, it’s enough to hold them. As they grow up, they are conditioned to believe they cannot break away. They believe the rope can still hold them, so they never try to break free.”

The only reason that the elephants weren’t breaking free and escaping from the camp was that over time they adopted the belief that it just wasn’t possible.

Moral of the story:

No matter how much the world tries to hold you back, always believe that you can achieve your goals and realize your purpose. Believing you can become successful and a your purpose is the most important step in actually achieving the prize.

Believing is achieving!

The Wright brothers, Wilbur and Orville, believed in their flying machine when the majority said it was impossible. Their unwavering belief was based on thousands of hours of research and experiments. And, the underlying secret ingredients were action and perseverance, also known as hard work and pressing on.

References:

  1. https://wealthygorilla.com/10-most-inspirational-short-stories/

Mindfulness and Wellness

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“Mindfulness is about being fully awake in our lives. It is about perceiving the exquisite vividness of each moment. We also gain immediate access to our own powerful inner resources for insight, transformation, and healing.” ~ Jon Kabat-Zinn

We need to adopt the practice of mindfulness in every realm of our lives.

Mindfulness is a way of being, of experiencing life, that is alert, awake, and present. It is the quality or trait of being aware of what’s happening, in the present moment, without judging your experience or needing to change it. 

Mindfulness is shown to reduce stress and anxiety, improve focus, and provide many other benefits.

“With this self-awareness, you’re able respond appropriately to the present moment instead of simply reacting with emotion fueled by your past experience.”

Moreover, mindfulness bolsters focus and clarity, can help you better navigate relationships with mindful listening and by reducing reactivity, and it can help you achieve your goals. It can make you feel more optimistic and also kinder and more forgiving toward yourself and others.

Mindfulness helps you respond appropriately to the present moment instead of simply reacting with emotion fueled by your past experience.

By witnessing our thoughts and feelings instead of automatically reacting to them, we disengage from our mental narrative and instead lightly hold our attention on the wider, quieter space beyond the thinking mind.

When mindfulness is paired with physical movement, and especially when done outdoors, the benefits are even greater for your mental, emotional and physical health, from measurable improvement in mood and immune function to better cardiovascular and respiratory function.

Studies show that mindfulness can improve confidence, resiliency, and focus among athletes. One study found that mindfulness helped college athletes sleep better, which improves both performance and mental endurance.

Mindfulness rewires the brain

Neural pathways are the superhighways of the brain—the most direct routes from initial thought to desired result. Mindfulness interrupts this process. Being present and witnessing your thoughts and feelings instead of automatically reacting to them, you disengage from our mental narrative and instead lightly hold your attention on the wider, quieter space beyond the thinking mind.

When you repeatedly disrupt the old reactive pathways and make different choices, over time you lay down new neural pathways, effectively rewiring how your brain reacts to certain situations.

These higher cognitive functions can point you toward more healthful ways of handling a situation. Mindfulness is a practice that really reaches into almost every area of our lives.

Here are just a few of the ways that mindfulness can help:

  1. Boosts serotonin levels and reduces cortisol levels — which can help relieve symptoms of depression, anxiety, and stress
  2. Improves heart health
  3. Lowers blood pressure
  4. Reduces chronic pain, muscle tension, and inflammation
  5. Improves sleep quality and duration
  6. Alleviates digestive issues
  7. Improves attention, focus, concentration, and memory
  8. Increases self-compassion and empathy

The best way to understand mindfulness is to experience it for yourself! Mindfulness supports mental health in all the ways mentioned above—helping you to bring your awareness into the present moment, to take a mental and emotional pause, and to gain perspective on your situation instead of letting your habitual thoughts and reactions run the show.

Most experts recommend a daily mindfulness meditation practice of 10 or more minutes. You can also practice mindfulness for any amount of time, even just a minute here and a minute there will help you develop your innate capacity for mindfulness.

References:

  1. https://mindfulness.com/mindful-living/mindful-walking
  2. https://mindfulness.com/mindful-living/benefits
  3. https://mindfulness.com/mindful-living/mindfulness-a-beginners-guide

Small Cap Company Investment

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The Russell 2000 Index tracks the 2,000 smallest stocks (or companies) out of the 3,000 stocks in the Russell 3000 Index

The threat of recession, or even a significant economic slowdown alongside persistent decades high inflation, could prove to be a challenging investment environment, especially for investors in small cap companies and stocks.

The Russell 2000 has outperformed and has offered the strongest performance in all indexes both month-to-date and quarter-to-date according to WisdomTree data. The Russell 2000 Index is one of the most commonly watched indexes among investors, and it’s considered a benchmark for how smaller capitalized US companies are doing.

The Russell 2000 is a stock index that tracks the performance of 2,000 small-capitalization companies and often serves as a measure of the underlying health of the US economy.

It is comprised of the smallest companies included in the broader Russell 3000 Index, and is one of the most widely used benchmarks for funds that invest in small-cap stocks.

“Small-capitalization stocks tend to be more economically-sensitive and cyclical than large-capitalization stocks,” says Ari Wald, a technical analyst at Oppenheimer. “That is, they both rise and fall by a greater magnitude through the ups-and-downs of an economic cycle.”

The Russell 2000 represents around 97% of the investable US equity market. The Russell 2000 serves as a benchmark for small-cap funds and a barometer for the overall health of the US economy.

Note: It’s important to always keep in mind that owning a stock means buying a percentage of ownership in the company. In short, when you buy a stock, you’re buying a fraction of a company, and that fraction may pay dividends and provide you voting right privileges.

Stocks are a way to build wealth.

References:

  1. https://www.businessinsider.com/personal-finance/russell-2000-index
  2. https://www.cnbc.com/2018/04/03/when-you-buy-stock-heres-what-you-actually-own.html

Housing Market Recession

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In July 2022, existing-home sales were down 5.9% from June and 20.2% from one year ago. ~ National Association of Realtors

U.S. existing home sales fell for the sixth consecutive month in July 2022, the longest streak of declines in eight years, the National Association of Realtors reported. Higher mortgage rates and a shortage of available homes on the market have cooled the once red-hot housing market.

Existing-Home Sales data measures sales and prices of existing single-family homes for the nation overall. These figures include condos and co-ops, in addition to single-family homes.

The drop off is a clear sign that the formerly booming market has stalled. Moreover, home building is slowing and mortgage applications are falling as more potential buyers are deciding to stay on the sidelines. “We’re witnessing a housing recession in terms of declining home sales and home building,” said Lawerence Yun, chief economist for the National Association of Realtors. “However, it’s not a recession in home prices. Inventory remains tight and prices continue to rise nationally with nearly 40% of homes still commanding the full list price.”

As new and existing home sales are slowing, the relentless rise in house price are beginning to show signs of easing. The median sales price for a home fell in July, the first decline since January.

Higher borrowing cost has taken some of the air out of the market. The Federal Reserve has been raising interest rates to control inflation and mortgage rates have risen in response.

The combination of higher housing prices and rising interest rates has pushed housing affordability to its lowest level in decades.

Moreover, home builder confidence plunged to a new two-year low in August as higher interest rates, posting its eighth consecutive monthly decline.

Additionally, lingering supply chain problems and record home prices continue to exacerbate housing affordability challenges, the National Association of Home Builders reported, prompting some experts to warn that the housing market collapse could be far from over.

References:

  1. https://www.nar.realtor/newsroom/existing-home-sales-retreated-5-9-in-july
  2. https://www.forbes.com/sites/jonathanponciano/2022/08/15/housing-market-recession-is-here-home-builders-slash-prices-as-buyers-cancel-contracts-mortgage-rates-rise/

Rules to Pick Quality Stocks

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“For the individual investor, investing in low-cost, tax efficient, broad-based, capitalization-weighted index funds is still the best way to build an investment portfolio.” ~ Burton G. Malkiel, author “A Random Walk Down Wall Street”

Index funds serve investors far better than expensive, tax inefficient, actively managed funds, argues Burton G. Malkiel, author ” A Random Walk Down Wall Street”. By holding a portfolio of all stocks on the market, in the proportion to their relative size or capitalization, the investor would be guaranteed to realize market return.

Index funds generally provide higher net returns for investors than actively managed funds that try to beat the market. “You are much better off not buying individual stocks, but buying an index fund,” Malkiel wrote. When investors talk about “beating the market,” they mean getting returns — over time — that are higher than what the broader market achieves.

Malkiel believes investors are generally better off to buy-and-hold rather than trying to chase particular strategies or make short-term moves. One of the best ways to cut down on both trading costs and capital gains taxes is simply to invest for the long-term. Do your research and buy into stocks slowly so you get comfortable with them. Hold them for decades.

But, if you’re inclined to invest in individual stocks, what follows are Malkiel’s Rules for picking quality stocks

1. Confine stock purchases to companies that appear able to sustain above-average earnings growth for at least five years.

Malkiel says although it is a difficult job to do, picking stocks whose earnings grow should be the main objective of investors.

“Consistent growth not only increases the earnings and dividends of the company but may also increase the multiple that the market is willing to pay for those earnings. Thus, the purchaser of a stock whose earnings begin to grow rapidly has a potential double benefit—both the earnings and the multiple may increase,” he says.

2. Never pay more for a stock than can reasonably be justified by a firm foundation of value.

Malkiel says investors can roughly gauge when a stock seems to be reasonably priced so they can look at the market price-earnings multiple before making an investment decision.

“Buy stocks selling at multiples in line with, or not very much above, this ratio. Look for growth situations that the market has not already recognized by bidding the stock’s multiple to a large premium. If the growth actually takes place, you will often get a double bonus—both the earnings and the price-earnings multiple can rise,” he says.

Malkiel says investors should be cautious of stocks with very high multiples as many years of growth is already discounted in their prices.

“If earnings decline rather than grow, you can get double trouble—the multiple will drop along with the earnings. Buy stocks whose P/Es are low relative to their growth prospects. If you can be even reasonably accurate in picking companies that do indeed enjoy above-average growth, you will be rewarded with above average returns,” he said.

3. It helps to buy stocks with the kinds of stories of anticipated growth on which investors can build castles in the air.

Malkiel says investors are emotional human beings driven by greed, gambling instinct, hope, and fear in their stock market decisions. This is why successful investing demands both intellectual and psychological sharpness.

“The key to success is being where other investors will be, several months before they get there. So ask yourself whether the story about your stock is one that is likely to catch the fancy of the crowd. Can the story generate contagious dreams? Is it a story on which investors can build castles in the air—but castles in the air that really rest on a firm foundation?,” he says.

4. Trade as little as possible.

Malkiel says frequent switching accomplishes nothing but subsidizing the broker and increasing tax burden when investors do realize gains.

“I do not say, “Never sell a stock on which you have a gain.” The circumstances that led you to buy the stock may change, and, especially when it gets to tulip time in the market, many of your successful growth stocks may become overweight in your portfolio,” he says.

Hence, Malkiel says picking individual stocks is a fascinating game and investors should tilt the odds in their favor while protecting themselves from the excessive risk involved in high-multiple stocks.

The odds of anyone consistently beating the markets are very low. Therefore, the recommended strategy includes index funds as the core of your portfolio follow by picking stocks with the money you can afford to put at somewhat greater risk.

While “beating the market” is a pursuit that can lead you to substantially grow your wealth, it’s not healthy to make it the cornerstone of your life. Investing should serve a bigger purpose in your life — like achieving financial independence, helping to send your kids to college, or whatever else matters to you. When you have a nest egg to do that, it’s entirely possible that it’s time to stop focusing on “beating the market” and turn your attention elsewhere.

References:

  1. Burton G. Malkiel, A Random Walk Down Wall Street, W. W. Norton & Company, New York, 2015, pp. 261-262.
  2. https://economictimes.indiatimes.com/markets/stocks/news/burton-malkiels-rules-to-pick-quality-stocks-avoid-irrational-decisions/articleshow/91850408.cms

International Dividend Investing

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U.S. dividend stocks continue to sport relatively low yields compared with other assets, especially as bond yields climb amid the Federal Reserve’s rate-hike.

But, there are alternatives assets to U.S. dividend stocks…international stocks:

  • MSCI Europe index was yielding 3.4%,
  • Japan’s Nikkei 225 index was yielding 2%,
  • MSCI Emerging Markets index was at 3.1%.
  • S&P500 was yielding 1.6%.

“Outside the U.S., there’s more of a culture of returning capital to shareholders through dividends rather than buybacks,” says Julian McManus, a portfolio manager at Janus Henderson Investors.

International stocks offer an higher yield than U.S. equities, though there are risks. Early in the pandemic, for example, dividend cuts went much deeper overseas than they did in the U.S.

Additionally, most countries impose a withholding tax on dividends paid to nonresidents. However, those withholding taxes, in many cases, can be credited against the U.S. shareholder’s U.S. tax liability, according to Robert Willens, a New York–based accounting and tax expert.

Another risk international dividends pose is that they can be more apt to get cut in economic downturns.

U.S. investors face a trade-off when it comes to international dividends: higher yields with higher risk.

References:

  1. Lawrence C. Strauss, Why Income Seekers Should Consider International Stocks, Barron’s, August 5, 2022.
    https://www.barrons.com/articles/international-stocks-income-dividends-yield-51659585601

Be a Dreamer and Pursue Your Dreams

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If you’re not pursuing and building your dreams, you’ll spend your entire life working to pursue and build someone else’s.

The greatest accomplishments and historic achievements started as dreams and visions that motivated the dreamer or visionary to shape their thoughts, beliefs and actions into a powerful reality.

From the planes we fly, the cars we drive and the sporting events we stream, passionate dreamers and visionaries like Thomas A. Edison and Elon Musk have developed all the things we enjoy and take for granted today.

“All successful people, men and women, are big dreamers. They imagine what their future could be, ideal in every respect, and then they work every day toward their distant vision, that goal or purpose.”– Brian Tracy