Category Archives: Behaviors

Focus and Mindset

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“Anything is possible if you have the mindset and the will and desire to do it and put the time in.” Roger Clemens

Financial mindset consists of a predetermined set of beliefs, thoughts, habits and behaviors an individual has about saving by paying yourself first, investing for the long-term and accumulating wealth for financial well-being.

Every person has a set of beliefs, thoughts, habits and behaviors about money and personal finance. Even if they can’t express what their thoughts and mindset are, they still exist subconsciously. By observing your own financial outcomes, you can begin to better understand your financial mindset, behaviors and habits.

Without a positive financial mindset, it is difficult to develop the good financial habits and behaviors that will be necessary to lead to an improved financial outcome and well-being.

A positive financial mindset means knowing that if you just hang in there long enough, things will work out financially with the correct financial habits and behaviors. Even if you partake in one positive action each day, your confidence and belief will grow, along with your wallet.

Focus and Thoughts

“If you’re trying to achieve, there will be roadblocks. I’ve had them; everybody has had them. But obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.” Michael Jordan

Mindset is basically about your thoughts and a harbinger of what you focus on in the short and long term.

When you focus a thing, be it positive or negative, your mind has a tendency to heighten your attention on that thought. As a result, by focusing on one thing, such as the fear and uncertainty caused by the COVID-19 pandemic, you have a tendency to miss other things good and positive happening around you. Essentially, your focus becomes the filter in which you observe your world.

Focus on opportunities

“No matter how dark things seem to be or actually are, raise your sights and see the possibilities, always see them, for they’re always there.” Norman Vincent Peale

This too will pass is a common refrain worth remembering in trying times like these created by the pandemic. History and good old common sense tells us that crises always come to an end and this COVID-19 will be no different.

We can control our thoughts, mindset and where we focus our attention. Thus, it behooves us to focus our thoughts on those things we can control and to think about what we need to do now, in the short term, to survive the current storm and prepare our paths for future opportunities and better days.

It’s about doing things now, in the downtime, in order to be prepared and prime to operate in the uptime. It is about laying the groundwork for tomorrow’s long-term financial success during today’s challenging times.

By focusing on the negative and on things outside our control, we can miss the other things and opportunities happening around us.

Positive Attitude

“Our attitude toward life determines life’s attitude towards us.” John N. Mitchell

Nothing is going to change in your life unless you change a negative attitude and mindset. And, you can change your life almost immediately if you can change your attitude and mindset. Many have said that, “A bad attitude is like a flat tire. If you don’t change it, you’ll never go anywhere.”

Furthermore, John N. Mitchell said it best when he said that, “Our attitude toward life determines life’s attitude towards us.” We’ve all heard about the power of our attitude, and that it’s our attitude can determine the altitude of your success in life.

References:

  1. https://www.verywellmind.com/what-is-a-mindset-2795025
  2. https://www.cnbc.com/2020/04/30/why-you-should-create-a-daily-money-mindfulness-practice.html
  3. https://graciousquotes.com/norman-vincent-peale/

Invest for the Long Term

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When the market is uncertain, following your long-term financial plan will be the best approach for growing your money and long-term investing success.

Like a roller coaster ride, keeping up with the constant change in the stock market can be an intense experience. And, although those periods of market uncertainty can be unsettling, the good news is that investors who stay the course and continue investing tend to do better over time. It can be tempting to sell at a loss when markets are low, and some wait too long on the sidelines and miss a window of opportunity. If you’re concerned about investing at the right time, you could dollar cost average your investments, which is investing smaller amounts at regular intervals, as opposed to investing a single lump sum at one time. By spreading out your payments, you can take advantage of market corrections and discounted pricing without having to try to figure out the optimal time.  The key is to stay calm and stick to your long-term plans.

Consider the Big Picture

Sometimes, we forget that what’s happening in the market today is really just a snapshot in time. History has shown that even after a slump, the market recovers. Even better, given the lower stock prices, a down market could be a good time to add to your portfolio. You’ll likely be in a good position to take advantage of future gains, especially if you don’t plan to cash out your investments for years.

Turn Off the Noise

Resist the urge to make investment decisions fueled by emotion or the day’s headlines. Stay focused on your goals and how long you have to achieve them. Here are some ideas to help you follow or tweak your plan calmly:

Assess your goals.

Consider how long you have to achieve your goals. What do you hope to accomplish in 5, 10, 20 years? How long do you have until retirement? If your goals need to be tweaked or you need to cash out some investments sooner than planned, be sure to talk to a financial advisor.

Review asset allocation.

Review how much you have in stocks, bonds, ETFs and cash. Is your portfolio still a good fit based on your age, goals and risk tolerance? If not, rebalance it to stay on target.

Start or continue to invest.

Investing your money is the most reliable way to create wealth over time.

If you’re new to the investing world, it’s time to get started and make your money work for you.  Your goal is to grow your money, and investing will yield higher returns than traditional savings options.

Continue contributing to your future.

Keep making regular contributions to your retirement plan. Prioritize these contributions as part of your monthly budget, so you’ll continue growing account balances without even thinking about it. And, keep in mind—participating in an employer-sponsored retirement plan or contributing to an IRA provides you certain tax and other advantages.

Investing may appearing daunting, especially if you’ve never invested in stocks, mutual funds or bonds before. However, if you figure out how you want to invest, why you want to invest, how much money you should invest, and your risk tolerance, you’ll be well positioned to make smart decisions with your money that will serve you well for decades to come.

Whether you prefer a do-it-yourself investor or prefer to seek assistance from an advisor, it’s important for you to develop good financial habits and for you to make sound choices.

References:

  1. https://www.fool.com/investing/how-to-invest/
  2. https://www.navyfederal.org/resources/articles/life/investments.php?cmpid=em%7Cnl%7Cresources%7Carticles%7Carticles%7Clife%7Cinvestments%7C11/20/2020%7C31689%7CA%7Ccb4.4

A Powerful Attribute for Success: Mindset

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Act in spite of fear!
 

Failure is a necessary evil on the road to success.

Your mindset is probably holding you back from creating the abundant life you dream and desire. Your mindset is your collection of thoughts and beliefs that shape your thought and habits.  And your thoughts and habits affect how you think, what you feel, and what you do.  Your mindset impacts how you make sense of the world, and how you make sense of yourself.

‘The 2% Mindset’.

“Adapting a growth mindset means recognizing that success is not about avoiding failures, but rather about embracing them, taking on challenges, and not giving up.” James Clear.

With a 2% or growth mindset, people believe that their most basic abilities and skills can be developed through dedication, deliberate practice, effort and hard work. This view of mindset creates a love of learning, growing and a resilience that is essential for success.

“To live is the rarest thing in the world. Most people exist, that is all.” Oscar Wilde

It’s postulated that only 2% of the population go for their dreams with confidence and excitement. They make a conscious decision to live “outside the box”.  They have the confidence to live a life of adventure and are willing to go for their dreams….the bigger the better. 

Only 2% of the population choose happiness and fulfillment. Only 2% of the population get the most out of life by exploring new things and embracing the unknown. Only 2% of the population live life without limits and act in spite of fear. In other words, only 2% of the population live a life beyond their comfort zone.

To achieve this mindset, you must actively change your way of thinking. You must act in spite of the fear. Rather than fear the unknown these 2% embrace the unknown.  Change is something to be embraced, as well, and they seek it with gusto.  The 2% have been able to embody an abundance mindset, not merely as a concept but as a way of being.  A life of contentment and fulfillment is their ultimate prize.

The remaining 98% of the population

The majority of the people (98%) in this world make a conscious decision to live in a comfort zone of their own making. They remain in their comfort zone and are content with just getting by. This zone is a place that is easy, routine, and secure.  It is easy to be like everyone else as it helps keep fear at bay.

98% of the population live their lives playing it safe, doing the right things and save themselves for some future event that never happens. 98% of the population enjoy being like everyone else and simply let life push them into submission because they have no guts. Deep down inside they are fearful and terrified of taking risks and end up settling for less. They really want to succeed, but the fear of losing is greater than the excitement of succeeding. 98% of the population will look back one day and know that deep down inside they didn’t go for it.

“Success occurs when your dreams get bigger than your excuses.” Anonymous

Fear, a powerful teacher.

The fear of failure is preventing you from realizing your true potential. It stops you from going for your dreams, be that public speaking, or maybe starting your own business. Most people wished that they had honored even a half of their dreams and had died knowing that it was due to choices they had made, or not made. But, “you need to fail, learn how to fail and condition yourself to fail” in order to find success, according to Tim Ferris.

Where there is uncertainty and fear, it’s easy to stay in your comfort zone and not face the unknowns. You experience resistance. Resistance is fueled by fear. And you feel fear because you don’t know what you don’t know and so you make up stories.

It’s important to embrace the unknown; find out how truly exiting and reinvigorating it can be. Live without limits, and enjoy exploring new things.

Regrets of the dying:

“Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life. All fear of embarrassment or failure — these things just fall away in the face of death, leaving only what is truly important.” Steve Jobs

Bonnie Ware, an Australian palliative nurse, counseled the dying in their last days and recorded their most common regrets. In her book The Top Five Regrets of the Dying – A Life Transformed by the Dearly Departing, she shared the top five regrets of the dying:

  1. I wish I’d had the courage to live a life true to myself, not the life others expected of me.
  2. I wish I hadn’t worked so hard.
  3. I wish I’d had the courage to express my feelings.
  4. I wish I had stayed in touch with my friends.
  5. I wish that I had allowed myself to be happier.

Take these five wishes of the dying to heart and avoid living a life full of regrets and unrealized dreams. Mark Twin said it best: “Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream.”

“Health brings a freedom very few realise, until they no longer have it.” Bonnie Ware

References:

  1. http://sourcesofinsight.com/what-is-mindset/
  2. http://www.amazon.com/exec/obidos/ASIN/B000FCKPHG/thbosh-20/
  3. https://www.cnbc.com/2017/08/07/how-overcoming-the-fear-of-failure-helped-steve-jobs-and-bill-gates.html?__source=iosappshare%7Ccom.apple.UIKit.activity.Message
  4. https://www.inc.com/tom-popomaronis/only-2-percent-of-world-embraces-these-11-risky-mindsets-heres-why-everyone-else-doesnt-but-should.html
  5. https://bronnieware.com/blog/regrets-of-the-dying/
  6. https://substanceeducation.com/2015/05/23/a-2-mindset/

Healthy Aging and Lifestyle: Happiness and Gratitude

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Gratitude is the expression of appreciation for what one has.

Attitude of Gratitude and why gratitude sprouts happiness

“The Grass is Always Greener on the Other Side” refers individuals who are not satisfied with their own lot in life and always assumes that there are better things in other places. This view appears to be a common human quality of always wanting something different than what you have. It assumes that your neighbor’s yard ( or circumstance) is greener (or more desirable) than yours, when, in reality, they are the same or your neighbor is actually coveting what you have.

“The grass is greener” expresses the idea that people often think a different set of circumstances would bring them greater happiness and joy in life; however, the phrase is often used in the context of reminding people that this is not usually the case. A more apt phrase is “the grass is greener where you water it., ” suggesting that good situations come from the energy you put into them, not from dreaming about them.

Developing an attitude of gratitude means that over time, gratitude can boost happiness and fosters both mental and psychological health, even among those already struggling with mental and physical health problems.

According to Psychology Today, “Gratitude is about feeling and expressing appreciation: for all we’ve received, all that we have (however little it may be), and for all that has not befallen us.” Studies show that practicing gratitude curbs the use of words expressing negative emotions and shifts inner attention away from such negative emotions as resentment and envy, minimizing the possibility of ruminating, which is a hallmark of depression.

Gratitude is a key tenet in all major philosophies and religions. That’s because gratitude is the foundation of happiness. We only have a limited amount of focus, so when you are able to be appreciative of what you have, your brain is unable to give life and energy to thoughts about what you don’t have. Seeing events in your life as gifts allow you to perceive how they may help you grow and become a better person, and the application of this attitude during tough times is the hallmark of resilience.

“Our happiness depends on the habit of mind we cultivate. So practice happy thinking every day. Cultivate the merry heart, develop the happiness habit, and life will become a continual feast.”

“Studies show that people can deliberately cultivate gratitude—and there are important social and personal benefits to doing so. It is possible to feel grateful for loved ones, colleagues, animals, nature, and life in general. The emotion generates a climate of positivity that both reaches inward and extends outward.” Norman Vincent Peale

Happiness is arguably one of the most important goals in life.

“Happiness has to do with your mindset, not with outside circumstance.” Steve Maraboli, Life, the Truth, and Being Free

“Happiness is best described as coming from between — that is if you get the right kind of relationship between yourself and other people, yourself and your work, and yourself and something larger than yourself… if you get those three relationships right … it will draw you out into the world, it will engage your passions, it will give you the kind of support that you need and want and it’ll give you a sense of meaning and purpose in life,” according to happiness expert Jonathan Haidt, the Thomas Cooley Professor of Ethical Leadership, based in the Business and Society Program at New York University.

“Money never made a man happy yet, nor will it. There is nothing in its nature to produce happiness. The more a man has, the more he wants. Instead of its filling a vacuum, it makes one.” Benjamin Franklin

What makes a person feel happy and grateful depends on the person and the degree to which we are inclined to experience and express gratitude. It can be something as simple as a call from a friend or a pleasant evening dinner with family. Engaging in a more specific act and how we think about an act, such as volunteering your time and talent to help others, can make people feel good about themselves.

“It isn’t what you have or who you are or where you are or what you are doing that makes you happy or unhappy. It is what you think about it.” Dale Carnegie, How to Win Friends and Influence People

Tips to Foster Gratitude

  • Keep a journal of or in some way note big and little joys of daily life.
  • Write down daily “three good things”—identify three things that have gone well for you and identify the cause.
  • Write thank-you notes to others.
  • Think about people who have inspired you and what about them was most significant.
  • Engage in “mental subtraction.” Imagine what your life would be like if some positive event had not occurred.

“Gratitude is the appreciation of things that are not deserved, earned or demanded – those wonderful things that we take for granted.” – Renée Paule

Learning to be thankful and regularly expressing gratitude is an important part of personal happiness. Being thankful gives us an appreciation for what we have.

  1. https://www.cnbc.com/2019/04/11/nyus-jonathan-haidt-formula-for-lasting-happiness-and-purpose.html?__source=facebook%7Cmain
  2. https://www.psychologytoday.com/us/blog/some-assembly-required/201411/the-benefits-cultivating-attitude-gratitude
  3. https://www.psychologytoday.com/us/basics/gratitude

Long Term Thinking and Planning

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Long-term thinking and planning are core values

In the book 7 Habits of Highly Effective People, Stephen Covey explains in the book’s second habit that it’s important to “Begin with the End in Mind”. This habit is all about knowing your purpose and what you’re trying to achieve. Beginning with the end in mind is all about asking yourself questions to determine your long term objectives and the reasons behind wanting to achieve them.

Habit 2 is based on imagination–the ability to envision in your mind what you cannot at present see with your eyes, according to FranklinCovey. It is based on the principle that all things are created twice. There is a mental (first) creation, and a physical (second) creation. The physical creation follows the mental, just as a building follows a blueprint. If you don’t make a conscious effort to visualize who you are and what you want in life, then you empower other people and circumstances to shape you and your life by default.

“Are you–right now–who you want to be, what you dreamed you’d be, doing what you always wanted to do?” FranklinCovey

According to Covey, before you can live a purposeful, meaningful life, you’ve got to have a vision of what that life looks like. When you know how you want people to talk about and remember you at the end of our life, you can start taking action now to make that scenario a reality later. With the ‘End in Mind’, you’ll know what you need to do day to day and week to week to get there.

‘Begin with the End in Mind’ means to begin each day, task, or project with a clear vision of your desired direction and destination, and then continue by flexing your proactive muscles to make things happen. 

It’s never too late to change course.

“People are working harder than ever, but because they lack clarity and vision, they aren’t getting very far. They, in essence, are pushing a rope with all of their might.” Dr. Stephen R. Covey

Personal journeys are all about defining your direction and moving towards it with consistency, perseverance and persistence. It’s important to remember that you are in control of developing your personal journeys to wealth, health and emotional well-being.

It’s imperative to understand that if you don’t have an end goal in mind, how will you know where are you going. How can you possibly know whether you’ve succeeded, failed or reached a place somewhere in between, if you don’t know your destination. Knowing your end goal can give you the continued motivation you need to achieve success.

Yet, the end product (goal) isn’t as important as the process. As Covey explains, “writing a mission statement changes you because it forces you to think through your priorities deeply, carefully, and to align your behavior with your beliefs.”

Additionally, it’s important to ‘focus on the process’. Remember, the important thing is that you’re intentionally thinking about what it means to live a life of purpose and meaning on a daily basis and how to get there.

References:

  1. https://www.franklincovey.com/the-7-habits/habit-2.html
  2. https://www.thediscoveryway.com/begin-end-mind-7-habits-highly-effective-people-explained/#:~:text=Begin%20with%20the%20end%20in%20mind%3A%207%20Habits,can%20use%20it%20to%20develop%20your%20personal%20leadership.

Wells Fargo’s CEO believes there is a Limited Pool of Black Executive Talent

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“The more things change, the more they stay the same.”  Alphonse Karr

What a classic example demonstrated by a major U.S. financial institution of the quote “the more things change, the more they stay the same”.  The saying is a reference to situations where there appears to be a meaningful change, but many underlying fundamentals are still the same.

Recently, Charlie Scharf, Wells Fargo’s CEO, wrote in a June memo to employees, “While it might sound like an excuse, the unfortunate reality is that there is a very limited pool of Black to recruit from,” according to Reuters. Scharf also repeated this claim in a Zoom meeting over the summer, exasperating Black employees.

According to the Washington Post, less than 5 percent of those holding senior executive positions at Wells Fargo in 2018, a year before Scharf became chief executive officer, were Black.

Committing to diversity and inclusion shouldn’t just be a marketing ploy; it should just be who you are.

Like Wells Fargo, many corporations have released marketing statements committing to change and to the elimination of structural racism and racial inequality. But, they have not released comprehensive data on the racial diversity of their employees and in leadership positions to the public. Regrettably, we must assume that many CEOs harbor similar shortsighted beliefs, and they continue to embrace the excuse that there exist a paucity of Black executive talent in America.

“We value and promote diversity and inclusion in every aspect of our business and at every level of our organization” Wells Fargo’s Diversity and Inclusion Policy

Although Scharf apologized profusely for his bonehead remarks and commented that his remarks reflected his “own unconscious bias”, we must asks whether his beliefs, which one must assume is also the company’s mindset, have actually changed.

“The point isn’t to get people to accept that they have biases, but to get them to see [for themselves] that those biases have negative consequences for others.” — Theresa McHenry, HR Director at Microsoft UK

“Wells Fargo is badly broken in multiple ways and that starts at the top,” Senator Elizabeth Warren commented. “Its CEO has an unfathomable blind spot about how and why this giant bank fails to hire, promote, and fairly compensate Black talent.”

Consequently, it’s difficult to argue against Senator Warren’s point. Since, the primary benefit of hiring from a racially and gender diverse talent pool is that it immediately expands the depth of the pool and increases your chances of hiring the best executive talent.

References:

  1. https://www.businessinsider.com/aoc-sherrod-brown-criticize-wells-fargo-ceo-scharf-black-talent-2020-9
  2. https://www.msn.com/en-us/news/politics/wells-fargo-ceo-issues-apology-after-saying-there-was-a-limited-pool-of-black-talent/ar-BB19mize?ocid=uxbndlbing

America’s Mental Health Epidemic

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“Be sure to give each other a lot of grace and be kind and forgiving to each other. We’re all experiencing heightened levels of uncertainty and anxiety right now. Giving an extra beat of patience to others is critical.” Dani Fallin, chair of the Department of Mental Health at the Johns Hopkins Bloomberg School of Public Health

The mental health impact of COVID-19 are real, widespread and growing exponentially. The immense stress and emotional trauma experienced by vulnerable individuals, families and households amid the pandemic has given rise to an unprecedented mental-health crisis. Additionally, there’s strong evidence showing that social isolation and distancing can increase symptoms of mental illnesses like depression and anxiety.

Data is staggering

The latest data reveals some of the most frightening and staggering spikes in anxiety, depression, substance use, drug overdose and suicide rates that behavioral-health experts have ever witnessed, according to Babette Hankey, president/CEO of Aspire Health Partners in Orlando.

A recent survey by the Centers for Disease Control and Prevention on adult mental health found that more than 40% of U.S. adults have reported at least one mental health issue during this pandemic, and more than 1 in 10 adults had seriously considered suicide. During this period, 7 out of 10 young adults (18-24 years old) reported experiencing symptoms of anxiety and depression and more than 25% have seriously considered suicide.

In the wake of the coronavirus COVID-19 outbreak, many people may feel anxiety or stress.

Everyone responses differently

Everyone reacts differently to stressful situations such as the seemingly enduring COVID-19 pandemic infectious disease outbreak. It is normal to experience a wide range of emotions. Yet, it’s important for people to take care of themselves physically, emotionally, and mentally.

According to the CDC study, the rate of substance abuse and/or suicidal thoughts among unpaid caregivers more than tripled between May and the end of June.

Older Americans appear to be more resilient to the strain of the pandemic compared to the young: The study found rates of anxiety, depression, substance abuse and suicidal thoughts were most prevalent among those aged 18 to 24, and the prevalence of these issues “decreased progressively with age.”

Black and Hispanic Americans tended to have higher rates of mental health issues tied to the pandemic than did whites, the study also found.

Of course, unemployment or the threat of it is a major source of anxiety for millions in 2020. So, efforts aimed at “strengthening economic supports to reduce financial strain” should be part of an effort to boost mental health, the researchers said.

According to the CDC, reactions during the outbreak can include:

  • Fear and worry about your health status and that of your loved ones who may have been exposed to COVID-19.
  • Increase levels of stress, anxiety, hopelessness and depression.
  • Changes in sleep or eating patterns.
  • Difficulty sleeping or concentrating.
  • Worsening of chronic health problems.
  • Increased use of alcohol, tobacco, or other drugs.

Learning to cope with anxiety and stress

Figuring out ways to cope with anxiety and stress can help you, your loved ones and your community. If stress begins to interfere with your daily life, reach out to your healthcare provider.

These numbers, although startling, are unsurprising to mental health experts given the emotionally taxing measures local and state governments have taken to reduce the spread of the virus: children and grandchildren have been separated from their parents and grandparents; students are prevented from attending school; and the sick and dying have been denied the embrace of loved ones.

During this unique moment in the nation’s history, American society and economy have slowed down, we’re experiencing unprecedented social unrest and political rancor, and, many have been left feeling powerless and uncertain about their physical health and financial wellbeing as well as that of their loved ones.

https://youtu.be/60kGONUJSRY

The importance of self-care during this challenging time.

“Seek out ways to have social and professional engagement while adhering to social distancing…can help people feel connected socially with their colleagues, family, and friends, and maintain a sense of belonging.” Dani Fallin, chair of the Department of Mental Health at the Johns Hopkins Bloomberg School of Public Health

  • Avoid excessive exposure to media coverage of COVID-19. Be aware and conscious of your news and media intake. The more time you spend consuming news about the pandemic, the more likely you are to feel anxious and concerned. That’s especially true at home, when you’re able to access news media 24/7.
  • Take care of your body. Take deep breaths, stretch or meditate. Eat healthy, well-balanced meals, exercise regularly, get plenty of sleep and avoid alcohol, smoking and drugs.
  • Make time to unwind and remind yourself that strong feelings will fade. Take breaks from watching, reading, or listening to news stories. It can be upsetting to hear about the crisis and see images repeatedly. Try to do some other activities you enjoy to return to your healthy life.
  • Learn a new hobby or skill like gardening, a foreign language or a musical instrument. Devote yourself to learning and growing everyday.
  • Connect with others. Share your concerns and how you are feeling with a friend or family member. Maintain healthy relationships.
  • Maintain a sense of hope that “this too shall pass” and maintain positive outlook and thinking. Have faith in your inherent resilience to persevere and overcome life’s extraordinary challenges brought on by the pandemic.

Take care of your mental health

Mental health is an important part of overall physical health and emotional wellbeing. It affects how we think, feel, and act. It may also affect how we handle stress, relate to others, and make choices during uncertain situations or an emergency.

Again, we stress to contact your healthcare provider if you think you have new or worsening mental health symptoms or stress (or anxiety) gets in the way of your daily activities for consecutive days.

References:

  1. https://www.cdc.gov/coronavirus/2019-ncov/daily-life-coping/managing-stress-anxiety.html
  2. https://www.orlandosentinel.com/opinion/guest-commentary/os-op-coronavirus-mental-trauma-aspire-health-20200914-xw7kcjahvbfrlgcd2s4bmvbmzi-story.html
  3. https://www.webmd.com/lung/news/20200813/levels-of-anxiety-addiction-suicidal-thoughts-are-soaring-in-the-pandemic#1
  4. https://hub.jhu.edu/2020/04/06/dani-fallin-mental-health-challenges-coronavirus/

It’s a Stock Market Bubble | Barron’s

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Excerpts from Barron’s article entitled:Yes, It’s a Stock Market Bubble. That Doesn’t Mean Trouble for Investors Just Yet.

By Ben Levisohn, September 12, 2020

“Every stock market bubble begins with a story.”

“”The story began easily enough, if not with “once upon a time.” A virus forced the country to shut down and accelerated the gains in a select few technology stocks that are uniquely capable of thriving with everyone stuck at home. A central bank took quick action to prevent financial markets from seizing up, pushing interest rates about as low as they could go. That helped lift the stocks of companies that are growing, including chiefly the aforementioned tech stocks, even if some have no profits. These stocks were among the first to rally once the stock market bottomed in March.”

“Now, get ready for the plot twist: Good investment ideas can stop being good ideas if the story goes on for too long. The tech trade—including tech companies that aren’t officially labeled as such—went too far before correcting suddenly in the past two weeks.”

“The forces that drove stocks such as Apple and Amazon.com to astonishing heights remain firmly in place. They include the companies’ continued growth, the Federal Reserve’s determination to do whatever it takes to keep the economy afloat, retail investors’ newfound interest in trading, and maybe even a bit of fiscal largess.”

Stocks will remain volatile, but the tech bubble will continue to inflate.

“For an investment bubble to occur, there has to be a widespread belief that a new paradigm has taken hold requiring an adjustment in valuations far beyond what previous fundamentals would imply. This belief needs to engage the imagination of investors beyond Wall Street, and there must be plenty of capital available to chase stock prices higher. The Covid-19 crisis has unlocked all three prerequisites.”

“Consider how the world has changed in the past six months. Social distancing is now the rule, and working from home is encouraged, when possible. Movie theaters are half-empty, and attending school now means opening a laptop at home for many students.”

“Companies that bring us a taste of our previous lives—such as Zoom Video Communications (ZM) and Peloton Interactive (PTON)—have seen their share prices soar. Shares of tech titans Apple, Microsoft (MSFT), Amazon, Alphabet (GOOGL), and Facebook (FB) have risen because the businesses are growing far more than most, and investors know that bigger is better in today’s world.”

“Some retail investors, starved for something to bet on in the absence of professional sports, have turned their attention to stocks.”

“At the same time, near-zero interest rates have encouraged investors to pay up for growth, while some retail investors, starved for something to bet on in the absence of professional sports, have turned their attention to stocks, trading through online brokers like it’s 1999.”

“As a result, Apple, Amazon, Microsoft, Alphabet, and Facebook now account for nearly a quarter of the value of the S&P 500 index, a level of concentration rarely seen in the benchmark. And that might understate the influence of Big Tech. Add Amazon and the S&P Information Technology and Communication Services sectors constitute 45% of the benchmark index, according to J.P. Morgan data, compared with 40% during the dot-com bubble.”

“Even as the biggest tech names have seen market caps swell, some formerly small companies have graduated to the big leagues. Zoom, for one, jumped 41% in a single day after reporting sales that more than quadrupled the previous year’s, a consequence of the video service’s widespread adoption beyond a business audience. Zoom stock, having zoomed 465% in 2020, is now worth more than $100 billion. Peloton has a market cap of $25 billion after gaining 209% this year, as its stationary bikes replaced gym memberships.”

“Zoom trades for 50 times 2020 sales, and Peloton, 9.3 times. Both are priced as if future growth is unlimited—a risky bet, especially if the postvirus world looks not all that different from the previrus world.”

The Fed has pumped trillions of dollars into the economy

“Behind the scenes, meanwhile, the Fed is operating the bubble-making machinery. It has pumped trillions of dollars into the economy, expanding its own balance sheet to more than $7 trillion from $4.1 trillion at the start of 2020. This time around, its asset purchases have included not only Treasuries and mortgage-backed securities but also investment-grade and high-yield bonds. All of this demand has served to lower interest rates to near zero.”

“The Fed typically has burst past bubbles, including the dot-com bubble of the late 1990s and the housing bubble of the mid-2000s, by raising interest rates. Don’t count on that now, or at least not yet. Fed Chairman Jerome Powell has effectively promised to keep rates low for years, which means there should be plenty of cash sloshing around to keep the bubble growing.”

“Perhaps the biggest reason to keep betting on tech—and the stock market—is that things aren’t nearly as frothy now as they were during, say, the dot-com bubble. Even in August, the market never reached the sustained frenzy that characterized the late 1990s, when the major indexes went parabolic and stayed that way for months, says Katie Stockton, managing partner of Fairlead Strategies. Stockton thinks the market’s recent pullback will create another buying opportunity, “A bubble would be characterized by prolonged upside momentum,” she says. “The market doesn’t have that.””

To read more: https://www.barrons.com/articles/the-market-is-a-bubble-but-that-doesnt-mean-troubleyet-51599862332?st=zdbk5yoalgbsduv

Source: https://www.barrons.com/articles/the-market-is-a-bubble-but-that-doesnt-mean-troubleyet-51599862332?st=zdbk5yoalgbsduv

Family Gatherings and House Parties Account for Majority of COVID-19 Transmissions

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In Maryland’s Prince George’s County, family gatherings and house parties have accounted for sixty-seven percent (67%) of COVID-19 transmissions, according to county officials. County officials say that contact tracers have determined that 44 percent of people who contracted COVID-19 reportedly attended family gatherings and 23 percent reportedly attended a house party.

Maryland Governor confirms that the trend is the same across the state of Maryland, saying that the number one cause of virus transmission in the state is family gatherings, followed by house parties, and then outdoor events.

Additionally, the Texas Medical Association released a chart breaking down the risk of contracting COVID-19 from certain activities ranging from grocery shopping, having parties at some else’s house and swimming in a public pool. Activities such as going to a hair salon or barbershop, traveling by plane, attending family gatherings like weddings and funerals, and going to a bar are considered moderate-high to high risk even for those wearing masks, maintaining six-feet of distance when out and washing hands thoroughly.

Texas Medical Association “Know Your Risk”

Currently, those at greatest risk of infection are individuals who have had prolonged, close contact with symptomatic or asymptomatic individuals infected with COVID-19 and those who live in or have recently been to areas with sustained transmission, according to Texas Medical Association and CDC. Keep in mind that many Americans have not been tested and studies suggest that people can be infected and not feel sick.

According to recent scientific findings, age is a strong risk factor for severe illness, complications, and death. Based on currently available information and clinical expertise, older adults and people of any age who have serious underlying medical conditions might be at higher risk for severe illness from COVID-19.

References:

  1. https://wjla.com/news/local/prince-georges-house-parties-family-gatherings-coronavirus
  2. https://www.tpr.org/post/know-your-risk-covid-19-chart-released-texas-medical-association
  3. https://www.texmed.org/uploadedFiles/Current/2016_Public_Health/Infectious_Diseases

Corporate Boardroom Equality and Inclusion

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America needs better inclusion and diversity in its corporate boardroom.

Addressing racial and gender disparity in the corporate boardroom has become a marketing priority in the past several months and less of a firm commitment to action for boardroom chairmen and chief executive officers, especially amid the global protests against racial injustice and inequality. Effectively, the numbers suggest that much work is needed to level the playing field.

Yet, many corporations claim to support diversity and inclusion, but the numbers simply do not add up. Recently, former AT&T CEO Randall Stephenson spoke passionately on CNBC about the lack of inclusion and equality within corporate American. Yet, the company he ran for 13 years and its board of directors he currently leads as executive chairman reflects that lack of inclusion with only one person of color board member. Furthermore, instead of walking the talk, his appointed successor at AT&T was a non-diverse male.

“A board that better reflects all the communities it serves is in the interest of all stakeholders.” Brad Gerstner, founder and CEO of Altimeter Capital and a founding member of The Board Challenge.

Black leaders are underrepresented in America’s public and private boardrooms. Approximately 66% of Fortune 500 company board members are white men and 18% of members are white women, while only 9% of members are Black men and women, according to a report by the Alliance for Board Diversity and Deloitte.

Research by Black Enterprise found that 187 S&P 500 companies did not have a Black board member in 2019, a 2-percentage point improvement from the prior year. Furthermore, recent data for Fortune 500 boards indicates that white men hold 66% of board seats and white women make up 18%, but only 9% of board seats are held by African Americans (men and women), according to online talent marketplace theBoardlist, which is a founding member of The Board Challenge.

The lack of inclusion and ‘doing the right thing’ is not going to passively happen. Leaders and companies must step up to take courageous action to advance equality and inclusion. For example, the moment a S&P 500 company drops or refuses to engage a vendor or contractor because they lack gender and racial diversity will prove transformative in our society.

Additionally, every U.S. company is encouraged to take The Board Challenge which represent a pledge seeking “to enhance representation in the boardroom by asking companies to retain or add a Black director to their board”. The Board Challenge is asking all boards without a Black director to add a Black director in the next 12 months.

“Diversity does matter when it comes to results.” Arnold Donald, President and CEO of Carnival Corp.

True and full racial representation at the board level is in the best interest of companies, employees, customers and communities and helps to advance and support a more equitable society. According to recent research, people of color in leadership position means better performance and returns:

  • Diverse boards of directors are 43% more likely than non-diverse boards to achieve financial performance above the national industry median for companies in the top quartile versus bottom quartile, according to McKinsey & Company’s Delivering Through Diversity 2018 report.
  • More than nine in 10 directors (94%) agree that board diversity brings unique perspectives to the boardroom, according to PwC’s 2019 Annual Corporate Directors Survey. Additionally, 87% said board diversity enhances board performance and 76% said it enhances company performance.

“One objection we hear is whether companies can find the kind of diverse board talent they are looking for. It is 2020 – it is not a pipeline problem, it is a perspective problem,” said Guy Primus, CEO of Valence and co-founder of The Board Challenge.

References:

  1. https://www.nasdaq.com/articles/nasdaq-continues-commitment-to-equality-by-becoming-a-signatory-of-the-board-challenge
  2. https://www.prnewswire.com/news-releases/the-board-challenge-launches-pledge-for-us-boards-of-directors-to-add-a-black-director-within-one-year-301126074.html
  3. https://www.blackenterprise.com/power-in-the-boardroom-corporate-governance/