Issue #2040
- WEALTHY: Give your portfolio a boost without adding risk (Rick Pendergraft)
- HEALTHY: 5 cholesterol-lowering alternatives to statin drugs (Dr. Al Sears)
- WISE: William S. Burroughs on making drastic changes
ALSO IN THIS ISSUE:
- How to revive a business that’s gasping for air (Marc Charles)
- Cabernet Sauvignon – a dark wine with dark, complex flavors to match (Michael Masterson)
- It’s Fun to Know… about chopstick etiquette
- Add "triage" to your vocabulary
Imagine Knowing of a Casino Where the Dealer Tipped His Hand Before You Made Your Move and Didn’t Care How Many Times You Beat Him.
When Would You Stop Going There?
This is nothing to do with games of chance, but I hope your answer to that question would be a resounding, “NEVER”!! Assuming you’re sane that is… Well, that is a virtually PERFECT analogy of the power of the insider signal!
It’s often said, “The Stock Market is just a big casino”. And it’s true. But the important omission in that statement (to keep the masses out!) is the dealer in this casino tips his hand to the select few… the insiders.
Such powerful knowledge could make YOU very rich indeed… Click here to learn more…
- Patrick Coffey
After the Recent Pullback, Which ETF Provides the Best Opportunity?
By Rick Pendergraft
After watching the overall market drop almost five percent in one week in February, I set out to find an Exchange Traded Fund (ETF) that not only held up during the recent pullback but was also poised to move higher.
Using a three-pronged approach – technical, fundamental, and sentiment analysis – I found what I believe to be the best ETF to buy at this point in time: the iShares Dow Jones U.S. Utilities Index (IDU). The IDU only dropped 1.7 percent during that fateful week in February.
Technical Analysis: From the beginning of March ‘06 to the beginning of March ‘07, the IDU gained 17.7 percent. Over that same time period, the Spyders (the ETF that tracks the S&P 500) gained a meager 6.8 percent.
Sentiment Analysis: That positive performance by the IDU wasn’t the only thing that caught my attention. There was a total of 101 analyst rankings on the 10 stocks that make up almost half the holdings in the IDU – and of those 101 rankings, 33 were "buys," 66 were "holds," and two were "sells." That leaves plenty of room for upgrades from this doubting bunch.
Fundamental Analysis: Despite outperforming the overall market, the utilities sector, in general, is under-loved. But from a fundamental standpoint, it should have an advantage over most other sectors. With the economy slowing, earnings for most sectors may get volatile. Earnings for utilities companies tend to be more consistent. This added safety net should make IDU less vulnerable in a time of uncertainty, but that does not mean it will lag the rest of the market during a bullish phase.
If you are looking to purchase one ETF to give your portfolio a boost without taking on more risk, the iShares Dow Jones U.S. Utilities Index is it.
[Ed. Note: Find out how Rick Pendergraft can help you make money - no matter what the market's doing - as the editor of ETR's new investment service, the ETF Options Trader.]
"Desperation is the raw material of drastic change. Only those who can leave behind everything they have ever believed in can hope to escape."
William S. Burroughs
The Desperate Entrepreneur
By Marc Charles
"I have to make this business work."
That’s what Ryan, a desperate entrepreneur with a serious problem, said to me the other night. He had been referred to me by a close friend, and wanted some advice.
But Ryan’s business isn’t just in trouble… it’s gasping for its last breath of air. What he needs is business "triage" not "advice."
As he was describing his predicament to me over the phone, his kids were screaming in the background. And I thought to myself, "The first thing you need to do is find a quiet place to work – one that’s separate from your family’s activities." (For me, it was the local library – and, eventually, a small back bedroom… with a bolt lock.)
My heart sank for Ryan – because I know what it’s like to be desperate for answers to business problems when you’re just starting out. My problems may not have been as severe as his, but I’ve been there.
His main problem is that he is in no shape right now to receive my (or anyone’s) counsel. Not because I’m so wise and business savvy, but because he is so overwhelmed.
It would be great if Ryan could step back from and unemotionally contemplate his situation, handling the most critical problems first. But he can’t. He’s too upset.
What’s more, his wife is probably asking a lot of questions, his kids want all his attention when he’s home, and creditors are pounding on his door for money. On top of that (from what I could tell from our short conversation), his problems are much deeper than a temporary "setback."
Business failures are like heart attacks, usually a symptom of something that’s been going wrong over a prolonged period of time.
Anyway, Ryan asked if we could meet for "two or three hours" to discuss "everything."
I’ll help almost anyone when it comes to launching, running, buying, or selling a business. But I am convinced that the root of Ryan’s problem can be discovered in a matter of minutes – not hours. Determining the solution or course of action for him to take may take a little longer… but I wouldn’t be addressing solutions in our first meeting anyway.
I told him that though I wouldn’t be able to meet with him face to face, I’d be happy to assess his situation and recommend a course of action that should resolve some of his problems. But I said that before I could do that, he needed to send me an e-mail with three very specific things in it:
- A brief overview of his business (target market, competition, sales, etc.)
- An explanation of why he thinks his business is failing
- Specific suggestions for what he thinks I can do to help him
I’m still waiting for that e-mail. Maybe Ryan will be in a better frame of mind to receive my advice when he hits rock bottom.
Had he taken me up on my offer, I would have looked at his expenses and studied how his sales are generated. In my 25 years of experience, I have found that the number one problem most desperate entrepreneurs have is a misunderstanding of the "first sale" principle (which you’ve probably read about in ETR many times).
Their second problem is usually that they are under water – with massive debt, expenses, payroll, collapsing trends, or a combination of all four.
One of the best ways I’ve found to control debt and expenses is to stop using credit cards for business expenses. There’s nothing inherently wrong with credit. But when we’re talking about a business that’s gasping for air… that calls for drastic action.
Most entrepreneurs don’t need nearly as much junk for their businesses as they think they do. Therefore, if your business is on its last legs, I’d suggest that you do without anything that’s not absolutely necessary… like fancy couches for the waiting room or engraved stationary or an espresso machine in the break room or mugs with your company logo on them.
The good news is that you can avoid ever getting to the point of desperation. Sure, businesses fail. That’s a fact of life. Changes beyond your control can occur overnight. But it’s what you do "between fortunes" that matters most.
You can hit two proverbial birds with one stone by understanding the wisdom of the "first sale" principle. It simply means that the first thing a new business must focus on is "making the first sale." Once you’ve made that sale, you can ascertain how it was done. And then you can put more effort into doing it over and over.
That’s why I’m such a big fan of direct marketing. It enables you to accurately track and analyze your sales.
As I said, the number one problem of most desperate entrepreneurs is that they have skipped over the "first sale" principle. Even if they initially generated impressive sales, they failed to figure out HOW those sales were made. So when the competition showed up offering better products or services at a lower price, they started losing sales.
Losing sales is not a big deal if you know how to generate more of them. You simply retool your marketing message and put it into the hands of qualified prospects. But if you’re losing sales AND you’ve got massive debt, overhead, bills, and a payroll to meet… that’s a recipe for becoming a desperate entrepreneur.
And when you’re desperate, it’s almost impossible to make wise, calculated decisions that will enable your business (and sales) to take off again.
I have a passion for helping entrepreneurs succeed. I’m convinced that there is hope for almost any situation – even if it means you have to throw in the towel and start from scratch.
By understanding the importance of that "first sale"… by understanding how and why certain products or services sell better than others… and – most important – by being open and ready to receive good advice, you can pull yourself up from even the most desperate position.
[Ed. Note: If you're looking to start a business but just can't come up with the right idea, consider subscribing to Marc Charles' weekly Profit Center Dispatch service. Marc's reports tell you how to get started and who to market to. He also includes insider tips to accelerate your success.]
Five Minute Real Estate “Day Trades” Yield Investor $90,000
Steve Cook literally buys and sells homes within five minutes while sitting at his desk.
In the last two months alone, Steve Cook made $30,000, $41,000 and $19,000 on three quick real estate deals – so simple he never even touched the keys.
The return on these “day trades” is infinite, because the initial investment required is Zero.
Find out how you can use the same day trading strategies to skyrocket your income.
- Justin Ford
Main Street Millionaire
Say No to Cholesterol Drugs for Kids
By Al Sears, MD
The American Heart Association now recommends statin drugs (cholesterol-lowering medications) for children with "high cholesterol." That’s hard for me to stomach. Kids need cholesterol to grow into healthy adults.
Your brain is mostly fat, and cholesterol is essential for brain function – especially for developing children. Studies prove it. For instance, doctors at the University of Pittsburgh revealed that patients taking Zocor didn’t perform as well on mental tests while taking the drug. They experienced a loss in attention span, memory, and overall mental efficiency that they didn’t have before they started Zocor. That could be a big problem for children in school.
You see, statins mess with your body’s chemistry, namely by affecting the way you metabolize fat. Even though many think this is good for lowering cholesterol, it’s bad for your brain. Your brain needs fat to function, and without it memory starts slipping.
So instead of using statins to "treat" children with high cholesterol, try to eliminate trans-fats from their diets. The worst offenders are French fries and fried fish and chicken. Instead, increase their omega-3 fatty acid intake. This is as easy as including more fish oils, avocados, nuts, olives, and eggs in their meals. Yes, I said eggs. Despite what you’ve heard, eggs improve cholesterol ratios. Not to mention they’re loaded with heart-healthy omega 3s and CoQ10.
[Ed. Note: Dr. Sears, a practicing physician and the author of The Doctor's Heart Cure, is a leading authority on longevity, physical fitness, and heart health.]
Living Rich: What You Should Know About Cabernet Sauvignon
By Michael Masterson
If you’ve been following the advice I gave in ETR #1997 and have started building your own wine collection, one of the wines you’re going to want to know more about is Cabernet Sauvignon.
Usually, you can detect what smells and tastes like dark grapes and dark chocolate in a Cab. Some are a little spicy, and sometimes you will get a little herbal flavor too. Most often all these scents and flavors will exist simultaneously. That is what wine experts mean when they call wines "complex." Cabernet Sauvignons are complex.
Another important thing to know about them is that when they are young they are usually very tart. This tartness comes from tannins (a residue from the stems and leaves that makes your mouth pucker). As the wine ages, the tartness mellows, which allows all the dark and delicious flavors to come through. As a general rule, it’s best to drink your Cabs at least seven to 10 years after they have been bottled.
There are two basic styles of Cabernet Sauvignon wine: medium and heavy. The medium-bodied style is typical of French Bordeaux. The heavy-bodied style is more commonly found in California Cabs, particularly those produced from grapes grown in the Napa Valley above San Francisco.
I like both kinds. The California wines tend to be more consistent, since the weather there is more consistent – but California Cabs are getting very expensive these days. I often find that I get a better value with French Bordeaux. Every wine cellar, even a beginner’s, should have some of each.
Most Bordeaux and Cabernet Sauvignons are not entirely made from Cabernet grapes. To "round them out," they are usually blended with a little Merlot and Cabernet Franc.
Because it is a hardy and flexible variety, Cabernet Sauvignon grapes are grown all over the world. You can get good quality Cabs from Latin America, Australia, and South Africa.
[Ed. Note: Want to learn more about building your own wine collection? Read Michael's article "A Start-Up Collection for New Collectors."]
It’s Good to Know: Chopstick Etiquette
When eating in a Chinese restaurant, have you ever stabbed your food with your chopsticks or used them like drumsticks on the table? Tsk tsk. Those are major violations of etiquette in the Asian countries that use chopsticks as eating utensils. Other actions to avoid include pointing with your chopsticks, using them to move bowls or plates, or letting the points touch the table. And when you’re done eating, never leaving them standing vertically in a bowl of rice, which can be associated with certain funeral rites. Chopsticks should instead be placed horizontally on the plate or on a chopstick rest.
(Source: Wikipedia)
Are You Ready to Enjoy the Life You Deserve?
So many people work like dogs all their lives, only to end up worrying about who will take care of them during retirement…While others breeze through a career they love and spend their golden years traveling and enjoying the finer things the world has to offer.
But it’s actually easier than you may think to control your own destiny…command respect from your peers… and enjoy life to its fullest.
You don’t even need a college degree. All you need is to master a few crucial, ultra-powerful skills that can unlock doors that have always been closed to you.
- You can learn how to come up with breakthrough, life-changing ideas again and again…
- You can learn the hidden money secrets that will help you buy the boat you’ve always wanted or retire early to a villa in Tuscany…
- You can learn how to get people excited about your ideas and eager to do whatever it takes to make your vision a reality…
- You can learn the key to making people sit up and listen each time you open your mouth…
- And little-known financial loopholes like how to travel for next to nothing, wipe out your mortgage in a fraction of the time, and how to turn your home into a cash-generating machine – these can be learned, too!
Wealth, power, and success are well within your grasp. Here’s how to transform your ordinary existence into an exciting, dynamic, and comfortable lifestyle…free of money worries.
- Patrick Coffey
Word to the Wise: Triage
"Triage" (tree-AZH) – from the French for "to sort" – is the process of allocating treatment to patients – especially battle and disaster victims – according to a priority system designed to maximize the number of survivors.
Example (as used by Marc Charles today): "What Ryan needs is business ‘triage’ not ‘advice.’"
[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]
Michael Masterson
Copyright ETR, LLC, 2007
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