Daily Intent

In 2007, I began a new personal tradition.  I was finding certain psychological hindrances, stemming from my childhood, blocking me from invigorating experiences.  Life changing experiences that would be positive to my mind and body.

My declaration: I would overcome an irrational fear each year.

At the time: Swimming laps.  Being held under water.  Losing control of when I get to breathe.  All led to great anxiety.

I, thus, set a goal, a bit crazy to most, and surrounded myself with people who believed the goal to be perfectly normal.  I would swim the channel, 26 miles of ocean swimming beginning at 12 midnight, with a group of local swimmers.  In relay format, we would swim 20 minutes at a time.

I soon began training for the swim.  Months later, after floundering many nights in the local pool, I began to find peace, relaxation and enjoyment in the water.  The early morning ocean swims were the only thing that was awakening enough for me to rise at 5:30am.

To keep this story to the point, the end result was making the crossing and feeling quite proud.  I was definitely proud of taking on the dark, unknown ocean waters at 3am, but even more proud of fully breaking my childhood fear.

This year, I’m taking on another psychological hindrance.  I’ll be trusting my mind when an alarm clock is set for the following morning.  I will no longer be listening to the fear in the morning when the alarm clock sounds that keeps me believing I won’t have enough energy for the day’s events if I don’t get another 15 minutes of sleep.

What fear are you going to overcome this year?

Buzzword: Regret Theory
“A theory that says people anticipate regret if they make a wrong choice, and take this anticipation into consideration when making decisions. Fear of regret can play a large role in dissuading or motivating someone to do something.

In investing, the fear of regret can make investors either risk averse or motivate them to take greater risks. For example, suppose that an investor buys stock in a small growth company based only on a friend’s recommendation. After six months, the stock falls to 50% of the purchase price, so the investor sells the stock at a loss. To avoid this regret in the future, the investor will ask questions and research any stocks that his friend recommends.

Conversely, say the investor didn’t take the friend’s recommendation to buy the stock, but the price increased by 50% rather than decreasing. Thus, to avoid the regret of missing out, the investor will be less risk averse and buy any stocks that his friend recommends in the future. ” -Investopedia.com

  Six Points to Ponder:

   1. Higher Conforming Loan Limits set to be offered to the public May 14th!  $729,750 available to you soon!
   2. Markets have found their latest hovering point.  The Dow sits just below 8000 at  7887.  S&P 500 at 844 and the Nasdaq hangs at 1646.  Oil settling in at $49.
   3. Existing home sales for March were down from February as buyers pulled back.  Prices rose, a common phenomenon in spring.
   4. The Fed had covered up Bank of America deal with Merrill.  Lewis calls out Bernanke and others.  Bank stress test results out tomorrow.
   5. In line with Earth Day, the first carbon cars hit the streets in the form of cop cars.
   6. The Lakers, Cavs, and Nuggets dominate their first two NBA playoff matchups.  Bulls vs Celtics, Blazers vs Rockets both offer exciting series.

Positives:

    * If your loan is just over the current max of $603,000 and have been wanting to take advantage of the extremely low conforming interest rates, stay tuned.  May will offer you some nice opportunities to begin saving large dollar amounts each month.
    * The markets, despite still being down on the year, are offering some confidence investors have found their short term comfortability state.  8000 Dow.  If you are an optimist, this may be time to put some money back into the market.  If you are a pessimist, this may be time to pull gains off the table.  Talk to a certified financial planner.
    * The lower end of the housing markets are experiencing high demand.  Multiple offers are happening.  Even offers over asking price are coming about.  The high end homes are still a concern and will continue to pull down the median prices.  Should you wish to see local data for Santa Barbara or Seattle, please write me.

Negatives:

    * Distressed properties continue to be pervasive.  50% of properties sold nationwide were a short sell or foreclosed property.  Foreclosures don’t look to be slowing in the near term.  Another topic to watch going forward, the number of people relocating states, rather than neighborhoods.  This effects economic progress negatively.
    * The Fed put BofA CEO Ken Lewis in a peculiar situation, topple the markets or violate the disclosure act for the investor’s right to material knowledge.  Were he to not go through with the Merrill deal and/or tell the world about Merrill’s poor economic state at time of purchase, it was believed the markets would have experienced complete disaster.  Whereas, were he to not say anything about the disasters within Merrill, he would be violating the first responsibility of a CEO, disclosing truthful information regarding the viability of a new purchase.

Services: Home Buying Preparation
Even if you’ve never considered buying a home, I recommend finding out where you are at.  When renting, I find many are less inclined to save for a particular reason.  Finding out your affordability level may give you a great motivator to save some extra cash.

Local: Tiffany’s and Wine Team in Training Party
Where: Tiffany’s, La Cumbre Mall
When: Saturday, 6:30pm
Cost: Free.
Why:  Ladies, you could win a Tiffany’s Necklace.

Live and Be Well,

Jeff Bochsler