Today was Terrific Tuesday!
Why?
Because my wife and decided to make it so…  We picked up my mother, who lives alone and been cooped up like many “good Alberta’s self-isolating” and just got out into the fresh air together.  Yes it was raining, as ‘the weather’ has done for most of June in Calgary, but the air was clear, fresh and alive!
In less than an hour the visit was over, but it just felt so good to see each other, even as we continued wearing our own protective masks!!!
Love You Mum, love you!  …  In other matters, the Markets!

                                                                                               Good morning.
Easy PeezyI wrote about the possibility last week but it now a reality.  Wells Fargo is cutting their dividend in order to meet the Federal Reserve’s requirements following the stress tests.  While the exact pay-out hasn’t been determined, it is a reflection of the difficulty of big banks in a recession.
The question is going to be whether Wells Fargo is the first domino to fall.  [Likely not.]

Now here’s the rest of the news:

The Biggest Disconnect Between Prices And Profits In Stock Market History?  Everyone is talking about the massive disparity between stock prices and fundamentals right now.  To paraphrase Jeremy Grantham, we now find ourselves in the top 1% of stock market valuations and the bottom 1% of economic outcomes (based on the annualized rate of decline in second quarter GDP).  A popular way to demonstrate this gap is seen in the chart below which plots total equity values along with total corporate profits.  [Read Here] the rest of the Felder Report.

June 30, 2019

“Compliments are like potato chips. Once you’ve had one you look for more.” – Harvey Mackay

As you may be able to tell, I just receive Harvey Mackay’s Weekly Nationally Syndicated Column…

In it was an article entitled, People Live Up To The Encouragement They Receive

Encouragement is an especially valuable tool … a manager who cares will remember these basic elements.  Here are the quick five:

  1. “I want to feel important.”  No one wants to feel like a number, interchangeable and easy to forget.  Get to know your employees as people; find out what makes each one unique and show them you’re paying attention to their individuality.
  2. “I need encouragement.”  Even the best employees continue to flourish and grow with positive feedback.  Let them know what they’re doing right and how they can keep performing at a high level.  They’ll notice and keep up their efforts.
  3. “I want to believe in you.”  Employees want to know they can trust you – your knowledge, your expertise and your word.  Show your commitment to helping them succeed and grow by listening, answering questions honestly and keeping your promises.
  4. “I want to succeed.”  Most employees want to do a good job, even if they don’t necessarily want to advance.  Explain your expectations clearly, and give them the training and support they need so they know you’re investing in helping them.
  5. “I want to be motivated.”  Yes, motivation springs from inside, but employees want to be told why they should complete a project or improve quality in terms that make sense to them.  Emphasize the job’s value to the organization, as well as the benefits the employee will enjoy — personal satisfaction as well as more tangible rewards — to unleash their enthusiasm and commitment.

As humorist Robert Henry said: “People do not live by bread alone.  They need buttering up once in a while.”

As always … thanks Harvey, 🙂

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