Finish Strong

Okay, so I didn’t get to meet Tim Tebow as I had wished for in my previous blog. I considered the option of rushing the stage, but I thought that might be inappropriate in a church.

Anywho, something Tebow talked about really got me thinking, and I thought I would share with you all what insight he gave. In 2008, the University of Florida had a heartbreaking loss to Mississippi, stealing away their so-far undefeated season. When Tebow came out of the locker room, this is the speech he gave:

I just want to say one thing.

To the fans and everybody in Gator Nation, I’m sorry, extremely sorry.

I promise you one thing, a lot of good will come out of this.

You will never see any player in the entire country play as hard as I will play the rest of the season, and you will never see someone push the rest of the team as hard as I will push everybody the rest of the season, and you will never see a team play harder that we will the rest of the season.

The Florida Gators went on to win the championship that year, they finished strong. These are words that Tebow lives by. Everyone always says “finish strong,” but I never took the time to process what that means. I’ll use a running example. For anyone who has ever ran a race, you have probably heard someone tell you to run hard through the finish line, to not slow down until you’re past it.

This can be applied to goal setting, work, school, or even everyday activities. The mindset that we all need to have involves working through something in its entirety. What it all comes down to is the end result, and do you want to be seen at the end barely trying? No. We want to give our all, every second of the way, especially at the end. That’s where it really counts. Even when obstacles get in our way, we have to overcome them and finish strong. If it’s a project, finish strong to get an A. If it’s work, finish strong to get a promotion. If it’s a game, finish strong to win it.

“All endeavor calls for the ability to tramp the last mile, shape the last plan, endure the last hours toil. The fight to the finish spirit is the one… characteristic we must posses if we are to face the future as finishers.” – Henry David Thoreau

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Is a New Market Shift Coming?

2012 so far has been a phenomenal year for the stock market. The Dow Jones recently reached
the 13K mark, which was last seen in May 2008 (it had met the 14K mark in 2007). This boost
came off of a great end to 2011, and now has some people looking at possible pullbacks and
even major adjustments, as this was the level met right before the 2008 downturn. The Dow,
however, is just a small look into the market. It is important to do a whole market analysis before
switching from bull to bear status, or vice-versa.

The S&P 500, which is often used as the market benchmark, has been meeting resistance at the
1.35K mark since 2011, and it is currently at that point. In May 2008, it was at the 1.4K level,
down from the highs around 1.55K in 2007. It is not quite at the pre-crash level in 2008, but it is
close.

The NASDAQ, which some argue is the best index to measure the state of the economy because
all of its companies are producers, is currently near the 3K level. This is above the levels seen in
2007 and 2008, and has actually not been seen since the dot com boom in 1999 and 2000.

So if the economy is producing, should we really be concerned about a correction? The answer
is “slightly.” Investors still remember the pain and volatility that the Greek debt crisis brought
in the summer of 2011, and so investor psychology may persuade them to take some profits,
and there could likely be some small adjustments. As noted earlier, it is important to do a whole
market analysis before worrying if another crash is coming. One way to judge the economy
is how financial companies are doing. In 2007, there was a divergence between the three big
indices and the financial index, XLF. While the market as a whole was in an uptrend, financials
were in a downtrend, preceding the crash that would follow. This was true again before the
summer 2011 volatility. Starting in February, the XLF began a downtrend, while the rest of
the market was in a slight uptrend. This of course was caused by foreign influences, but the
financial companies were still tied to it, and what affects them will eventually affect the domestic
companies that rely on them. For this month, both financials and the rest of the market are
relatively flat.

The recent strong momentum in the market may be over, and it could even be that some slight
pullbacks will happen as investors take the profits. However, there is currently little to no
indication that major losses like those seen in 2008 and 2011 are coming. The situation in Greece
will keep some volatility in the market, but recent news has been more promising than bad. The
XLF is holding steady, and recent reports are announcing that the housing market may have
hit its bottom and may be recovering. The XLF should continue to be watched, and if it has a
divergence from the rest of the market, that would be the time to become concerned.

The market is constantly changing based on news, outlook, performance, psychology, and
many other factors. It is important to pay attention to many of these factors, because what looks
promising one day may not look promising in a relatively short amount of time.

Article by: Kyle Burchert

Building Relationships in Your Network

Networking in the business world is like an art. Networking does not simply mean to attend an event and exchange some business cards, creating an online profile, and constantly working on your resume, it takes more than that. Developing key relationships is very important when developing your network. A true and very effective network does not consist of just like minded business people but rather a network of developed relationships in which you can comfortably state what another persons skill sets are. By taking the time to realize what another individual can offer and really getting to know them, you then realize their full potential and can pinpoint what that person can offer to you. Now a true business relationship will return the favor and really get to know your own skill set. This is a win win situation because that person will be able to translate your skills to other individuals in that persons network, picture two sets of a domino effect heading in opposite directions. Knowledge and your own expertise are key in developing your professional career but every other college graduate is doing that already, in order to set yourself apart you must be able to communicate those skills through your network effectively.

Your resume, your Facebook, your blog, and your LinkedIn are all basics in marketing yourself nowadays. None of these things are options anymore and you must use all of these things effectively just to stay in competition. Going back to face-to-face contact and really focusing on your interpersonal relationships will enable you as an individual to be remembered. We cannot rely on social media to market and promote ourselves since the masses are already doing this. Concentrating on your personal development and really caring about the relationships you create will get you where you want to be.

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Home Depot made headlines everywhere Tuesday morning after announcing an astounding 32% growth in 4th quarter earnings for 2011. They also claim that they expect to see continued growth in 2012 with signs of an increasing home-improvement market. Some of the recent sales and customer traffic gains may be attributed to the unusually warm winter months being experienced. However, Florida stores outperformed the company average, and California locations were on cue with the average, which shows promise considering both of these states were hit hard by the housing crisis². Taking into account these factors, could this mean that we have reached a housing bottom?

While there is still obvious uncertainty about the future of the housing market, the fact that the housing sector is not getting worse suggests large upside and has come to the surprise of some analysts¹. Early Tuesday, shares of Home Depot reached their highest levels in 9 years and analysts contribute this to an overall positive sentiment in the community for the housing recovery². Henry Blodget, CEO of Business Insider and co-host of The Daily Ticker, stated “at least we’re back to average” when it comes to prices of homes relative to what people are earning and the cost to rent¹. On the subject of stock appreciation and the current optimistic economic outlook, Blodget states that this may simply be “expectations catching up with reality².”

The current spike in shares for Home Depot and their impressive 4th quarter earnings certainly suggest that we are on the verge of recovery. The question remains whether we have indeed reached a housing bottom, or is this one more sign that increases optimism only to disappoint in the end? The picture is still not clear, but ideally we can hope that the bottom has been reached for both housing and the US economy as a whole.

Other home-improvement companies to watch:

Pier 1 Imports (PIR), Lowe’s (LOW), Orchard Supply Hardware Stores (OSH)

Works Cited:

1 Macke, Jeff. “Home Depot Earnings Surprise: Sign of a Housing Bottom?” Yahoo! Finance. 21 Feb. 2012. Web. 21 Feb. 2012..

2 Solsman, Joan E. “THE HOME DEPOT, INC.” Home Depot 4Q Net Up 32% On Strong Sales. 21 Feb. 2012. Web. 21 Feb. 2012..

Article By:
Ryan Wallace

I don’t think there is any one person that doesn’t aim to be successful. However, it is often misconstrued as a huge feat, that people shed their blood, sweat, and tears to attain. Shoot, I consider it a success if I wake up on time each morning or make it through the day without tripping or running into something (those dang invisible walls).

Let’s face it, each person has countless chances to be successful in life, but it takes a special person to be significant. What are you going to do to make that happen? Just as there is with success, there are many different ways to define significance. What it all comes down to, however, is making a difference in your life or the lives of others.  Make a lasting impression on those around you; it’s not as hard as one might think. But how?! Well, of course, you can follow these steps:

• Continue to set goals in your life, but make sure at least one of them is for something BIG. A lot of people I have talked to are opposed to setting “unattainable” goals, as they call them. Well I’m here to tell you to take the “un” out of “unattainable.” If you live your life thinking you can’t, then you’re not really living at all.
• Go above and beyond what’s expected of you. Make yourself irreplaceable in whatever it is you are doing.
• Strive for excellence. If you believe there are greater things out there for you, then there are. Don’t ever settle, but also realize that success won’t fall in your lap. You’ve got to work for it.
• Don’t be a big sissy la-la (refer to my last blog for an explanation)

If your goal is to be successful in life, have fun hanging out in that boat (population: the whole world). Instead, make it your goal to be different, be significant, and your legacy will live on.

“Try not to become a man of success but rather to become a man of value” – Albert Einstein

Follow me on twitter and let me know what you would like to hear about on my next blog! @NelsonKati

Article By:
Kati Nelson

Follow her personal blog @:

http://toughmotivation.wordpress.com

It wasn’t until I began classes in a social media course with Dr. Bret Simons at the University of Nevada-Reno, that I fully understood the potential of the internet. It is a very powerful tool, but we need to think of the internet as a tool box, not a measly hammer or screwdriver. Within this toolbox are the very effective and useful social media platforms that we aren’t taking advantage of.

LinkedIn, Google+, Twitter, Facebook, the list goes on and on. The idea is to use all of the major networks, and use them well. Most people fall into one of three categories (we will take Facebook as an example, even though it is the least important social media platform out there):
“I have a Facebook, but it’s, like, private and stuff so no one can see what I’m doing.”- Online privacy is non-existent, and so is your brain if you continue to think this way.

“I don’t have a Facebook because it’s stupid and I don’t want my business online.” –If you’re not online in some way shape or form, you’re not on the radar for future employers, customers, etc. No one is asking you to put your home address, phone number, social security number, or copies of your credit card statements online (there probably are people asking this, but if you oblige, please refer back to the previous statement of your brain being non-existent).

“I have a Facebook that is professionally personal (thank you to Bret Simmons for the phrase), as well as a LinkedIn, Google+, Twitter, and WordPress.” –Awesome! Your brain is in good shape.
Get out on the internet and explore, the information is unlimited! Google yourself and see what comes up. If it’s nothing, it’s important to work on expanding your platform. Being off the radar is not a good thing. If you do come up in a Google search, make sure it’s something you would want a future business associate to see. Your old MySpace? Get rid of it! Nobody, especially business professionals, wants to see photos of when you were 15 and thought you were really super cool because you took pictures with your camera in the bathroom mirror.

Learning about social media is fascinating. With the ever-growing increase in technology, there are always new outlets to use. So gear up, plug in all your power tools, and take advantage of the huge (and free) opportunity that the internet is giving you.

Article By:
Kati Nelson

There are two main types of risk you should know about. They are unsystematic and systematic risk. Unsystematic, also known as firm-specific or diversifiable, risk is the volatility in your portfolio returns due to factors that are unique to a specific sector or company. Daily return computations capture firm-specific volatility. This is because there is greater variation in daily returns as opposed to monthly or annual returns. You can essentially eliminate this risk with a portfolio of around 40 different stocks (in different asset classes). Systematic risk is the variation in returns due to market risk. These risks include things like unemployment, inflation, economic shocks, and other macro-level occurrences. You cannot get rid of market risk.

Effective diversification lowers your portfolio’s standard deviation (we will ignore tail risk and assume a normal distribution). Why so? This is because the correlation coefficient varies with each individual stock. If two stocks have a correlation equal to one, they have perfect positive correlation and will move together. A correlation equal to zero means there is no relationship at all in the gains and losses. A correlation of negative one means when one stock goes up one percent the other goes down one percent (correlation is between -1 and 1). Since no stock is perfectly correlated with another stock (if you diversify correctly), your portfolio’s standard deviation will consequently decrease. However, over the past decade, the stock market as a whole has become increasingly correlated. This is because of the high demand for ETFs (exchange-traded funds). ETFs are an inexpensive way to minimize unsystematic risk. Unfortunately, this leads to stocks within an ETF being bought and sold not on the fundamentals and performance of a certain stock, but because an investor wants to get rid of his firm-specific risk.

Systematic risk should not be confused with systemic risk. Systemic risk is too-big-to-fail risk. Basically an entity is intertwined with others and the failure of one will lead to a domino effect of failures. The financial crisis of 2008 is a perfect example. When Lehman went under, Goldman Sachs and other investment banks had large holdings in the insolvent firm. If it wasn’t for a government bailout these banks, and the economy, would have collapsed due to an illiquidity trap. The total risk of a financial instrument is the sum of the systematic and unsystematic risk.

Article By:
David Howard

So how does one set him/herself apart from the competing hordes of bright-eyed and bushy-tailed graduates who are chasing the same jobs with, in most cases, only minor differences in qualifications? How does one gain a competitive edge in their efforts to find a fulfilling, high-paying career with room for advancement? The old cliche, of “thinking outside of the box,” – while both motivational and valid in theory – is not so helpful when it comes to the job hunt.

Given the unlimited amount of information that can be found online regarding interviewing, resume building, networking and so, we all have access to the same resources for the most part. Granted, the caliber of your school and the programs it offers can be a huge advantage but it seems more and more that people truly believe that getting a good job hinges on who you know and how lucky you are when it comes to encountering opportunity. However, in my mind thinking outside of U.S. borders and considering opportunity abroad can be a great way to eliminate competition and get involved in business on a global scale.

Globalization is continuing to influence the way business is done across the world. Trade relationships today exist between more countries than ever before, and many prominent firms in the U.S. conduct the majority of their business activity abroad. Singling out and researching specific industries and companies that take part in business overseas can not only narrow your choices as to potential employers, it can also offer you the opportunity to become involved with the world of global trade – which seems unlikely to slow down anytime soon.

According to an article from The Daily Beast, students who go abroad in their studies can distinguish themselves from other students with valuable experience and cultural exposure. The article suggests: “…college administrators say, if the experience is in a culture crucial to the way many businesses are now organized, it can give them a leg up in the job market. Especially when paired with an internship, even a few months’ time out of the United States can help them enter companies that have, say, suppliers in China, customers in Brazil, and colleagues in India. “Just getting them abroad makes such a difference, regardless of the program,” says Stone, who plays down the partying angle. “…” What’s more numerous ESL programs in other countries offer students the opportunity to gain this experience and learn a foreign language at little to no cost. Personally, I find major encouragement in the fact that no matter whether you choose to think about entrepreneurial opportunities abroad, seeking employment in a foreign country, or finding an American company that is involved in the global marketplace, there is plenty of opportunity. In short, it seems clear to me that International Business major or not – looking to international opportunity is one surefire way to increase your probability of finding a great career.

Article Written By:
Eben Webber
Check out his blog on Latin American Business