Daily Intent

Santa Barbara, CA
This past week for me could have been themed “Economic Challenges Amplified”.  I had a heart-to-heart with a business associate that has seen income drop by over 50% this year.  Another associate lost their job.  And a couple others were on the brink of losing their homes.

All were, as one would expect, emotional.  There was a sense of frustration, helplessness, sadness, failure, and lost sense of purpose.

This may not be you, but consider a few less dramatic scenarios that surely left you with similar emotions.

Have you ever typed a 10 page paper and had your computer crash?  How about an email to your boss that was long thought out and perfectly composed, then the network goes down?  Had your house robbed?  A personal painting that was ripped or tainted?  Irretrievable.

Do you remember the feeling?  Was it anger that first set in?  Frustration?  Physical emotions?  Heightened blood pressure?  Did you then try every which way to bring back the document?  And once you realize it was gone for good, how did you feel?  Defeated?  Sadness?  A feeling of hopelessness?  A need to take a walk?

Do you see the similarity in both realities, losing a income/job/money or losing a well composed paper?  Extended focus and hard work wiped clean.

And the positive similarities?

You now have the tools to recreate and rebuild that which was lost.  You have the skill set.  You know what it took to get there.  You may forget a few of the details, but these will be replaced with oft more creative details.

You can be confident this time the creation is going to be better than the first.

If you can get over the emotional attachment to the loss, remember what you know, and proceed methodically, you will find yourself more focused and more able to arrive back at page 10, and even 11, with a better product than before.

Then again, you may find great freedom in saying good bye to your old canvas, selecting a new, larger one, and getting involved with new colors.

Either way, you will be grateful in the future for the short term set-back and clean slate.
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Bank of America Distressed Properties Seminar w/ Ivan Choi.  This Wednesday, October 21st. 5:30pm. $10.  Santa Barbara Board of Realtors.  1415 Chapala St.  Ivan Choi is our top dog in Portfolio Retention.  He’ll be speaking on Loan Modifications, Short Sales and Foreclosures.  Call to reserve your spot - #963.3787.

Team in Training - Casino for a Cure.  November 7th.  6:30pm - 9:30pm.  $45.  At the Canary Hotel.   Music, Cash Prizes, Heavy hors ‘doeurvres, One drink ticket and Plenty of gambling chips.  Order tickets at www.SBTNT.com.  Congrats to all runners / walkers that completed the Nike Women’s Half / Full Marathon Sunday!
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Buzzword: Bulldog Market
“A slang term for the stock market in the United Kingdom.  Bulldog market is usually used by non-U.K. residents.  It is an allusion to the Great Britain’s famous pooch, the British Bulldog.

The term Bulldog Market was used in business slang but has become widely accepted, much like the ‘Yankee Market’ refers to U.S. markets and ‘Samurai market’ refers to the market in Japan.  Bulldog Market is unrelated to the term ‘Bull Market’ which describes a market on the rise. “  -Investopedia.com

  Six Points to Ponder:

   1. Markets Up. We powered past the 10,000 mark and now investors are greacefully tip-toeing just above it as we trudge through earnings season - The Dow is trading  at 10,059, S&P 500 at 1094 and the Nasdaq stands at 2171.  Oil is up to $78/bbl.
   2. Santa Barbara Greets World Leaders.   I’m unsure why a San Francisco titled summit is held at Santa Barbara’s Bacara Resort, however I suspect it has something to do with the limited number of protesters in Goleta.
   3. Housing Starts Up But Not Enough.  Housing starts were up 0.5% in September in comparison to August.  Investors had expected a 3 - 4% increase.  Moreover, permits, a future construction indicator, fell for the second time in three months. 
   4. A Shiny Apple.  Apple’s new slogan: An iPhone and/or Mac computer a day keeps the doctor away.  A 47% quarterly profit jump, 7.4 million iPhone sales, and 3.1 million Mac computers all equal a stock price over $200 / share.
   5. KaChing.  As of yesterday, www.kaChing.com began allowing users to invest real money on their site.  Congrats Dan Carroll!  You did great on CNBC.
   6. Dodgers Near Dunzo.   Bottom of the ninth, ahead by one, and one of the best closers in the majors on the mound.  The Dodgers let a big game slip away.  The Sports Guy, a huge Dodger fan, was not available for comment.  Dodger’s un-Defeated Denver.   Sarah Dodge’s Denver Broncos are one of a few teams still undefeated six games into the NFL season.

Positives:

    * Breaking through 10,000 points on the Dow is a huge confidence boost for the overall markets.
    * Did the world leaders arrive early to attend the Lemon Festival?  Our beautiful weather and beaches have received some nice press on CNBC.  Big home purchases and increased tourism might just be the end result. 
    * Apple beat the Street’s expectations and proved the American public culture is experiencing a paradigm shift.  Our appetite for Apples continue to grow as soda, AKA Coca-Cola, is losing favor.  Might we be a healthy country after all?  Seriously though, Coca-Cola profits bubbled slowly upwards while their sales sunk. 
    * I love seeing peers revolutionize industries.  www.kaChing.com is a site that allows individual investors to follow and emulate “genius” investors that are rated to have “high investor IQ’s”.  The genius is rated by a number of metrics: risk adjusted returns, whether they are consistent with their strategies, their time on the site, etc…  This site is meant to return the power to the investor.  “Rooted in an open source philosophy that seeks to ‘democratize access to the best investing talent,’ kaChing takes aim at the mutual fund industry, which it claims isn’t sufficiently transparent.”  Other great companies currently being developed by peers: Bump, SBClick, SuiteArrivals, and Audiolife.
    * The Angels’ extra inning win last night will serve well for their confidence and a surprise come from behind series victory over the Yankees.  World Series bound?  Let’s take one game at a time.

Negatives:

    * Most large companies have been coming out with 3rd quarter results that beat the Street with regards to profits, however the large reason for heightened profits is not because of increased sales / revenue, but because of cost cutting.  This leads to the overall rise in corporate efficiencies and a decrease in wasteful spending.  Along with these two positives comes layoffs.  Firing employees boosts profits in the short-term, but not necessarily in the long run.  In short, from an overall economic recovery perspective, we’d much rather hear of increase profits due to increased sales.
    * Asian countries are leading the world economic recovery, as they expanded at a 9% annual rate in the second quarter.  According to Bernanke, “At this point, while risks to the economic outlook certainly remain, Asia appears to be leading the global recovery…To achieve more balanced and durable economic growth and to reduce the risks of financial instability, we must avoid ever-increasing and unsustainable imbalances in trade and capital flows.”  In layman’s terms, we need China to re-value their currency.  The Yen is far too cheap right now.  We also need to increase our national savings rate.
    * The Dodgers and the Seahawks.  No further comment.

Local:

SB Click iPhone App Kick Off
Where: Tonic
When: Friday, October 23rd
Cost: Free specials with the download of the App
Why:  Learn why this app will change your experience of Santa Barbara as a Business Owner and/or Smartphone user.  Bring your iPhone!  Register at http://www.sbclick.com.
For other fun weekend ideas, go to www.lovemikana.com

Live and Be Well,

Jeff Bochsler