This message looks at ways to earn and invest globally because Congress and the President are now one week from pulling a trigger that could cause the US dollar to fall. This creates a great opportunity.
See below how to gain safety and opportunity here and a 59% gain in perhaps the world safest currency. Photo from carefreetraveller.com
An NBC News article yesterday said: If Republicans and President Barack Obama were to fail to reach an agreement to raise the nation’s borrowing authority, that would be “pretty damn dumb,” said billionaire investor Warren Buffett in a taped interview that aired on CNBC Friday.
In addition to the upcoming October or early November deadline on the debt ceiling, the prospects of a government shutdown next month also loom.
But Buffett, while critical of this type of partisan bickering, told “Squawk Box, “the market is not gonna fall apart, because [investors] expect Washington will only act irrationally for a certain length of time.”
Buffet’s point that the market does not act irrationally forever gives a clue on how to find value in the days ahead.
The US dollar has been falling for the past 40 years and then became irrationally strong during the 2007 recession. The debt ceiling battle could cause an equally irrational collapse of the greenback. If the dollar over corrects, those who earn and invest globally will have a great advantage.
Our recent message All You Need is Love provides evidence that good social interaction can improve health and longevity. This is also really good for profits and business.
Here is the irony… if you use social networking just to improve your business it probably won’t work.
One of the greatest assets of a micro business is personal focus and authenticity. Big business cannot provide this because genuine care and willingness to serve cannot be delegated. Big businesses try to create corporate cultures that generate enthusiasm, friendliness and care… but this process only works a little at best.
Human nature simply does not allow a 50 year old CEO in New York to motivate a 35 year old corporate trainer in Los Angles to train a 24 year old telephone responder in India to really connect and care about a 65 year old customer in North Carolina.
The shorter the path between the heart… the greater the shorter power. The shortest path for care is often husband and wife and parent to child . The next shortest is usually friend to friend. These friendships come from shared experiences or like minded interests. The most powerful business friendships are direct from the head of the business to the customer. Every level of delegation reduces the power of the friendliness in business.
Size also matters. It is as easy to care for 10,000 as it is for 10… but not so easy to spend time with all 10,000 and personalization matters with care.
This makes the use of social media in business a delicate matter. You have to care… you have to personalize in some way… but you also have to budget you time and resources to this.
How to Make Social Media in Business More Effective
This is really similar to the dilemma that health care providers face. Healing is a very personal profession, but the business requirements often create pressures on the time required for a good face to face exam.
Those who have waited for hours in a medical office only to be rushed by a nurse for a glimpse of the medical professional as he quickly looks at the chart with seeming disinterest… who makes a quick diagnosis and departs has suffered from this care-business dilemma.
We can get ideas on way to use Social Media in business by observing what health care professionals are doing.
One growing wave is the use of technology to simply return to the house call. New Tech equipment is portable. High tech algorithms can help determine whether a hospital or at home visit is required and technology can help reduce labor costs in scheduling and travel time and rent as office size can be reduced.
The NYT article “Hi, It’s Your Doctor” by Ezekiel J. Emanuel says: In 1930, house calls accounted for 40 percent of physician interactions. By 1980, that number had dropped to 1 percent.
But after a half-century, the house call is making a comeback. The available data on house calls are spotty at best. But one study estimated that in 2010, about 4,000 physicians conducted more than two million house calls. Some do what my father did: attend to urgent but not emergency situations, taking care of people with stomach pain, fever, cuts needing stitches and the like. These kinds of urgent-care problems are best treated by a house call, but account for about 40 percent of the nearly 130 million annual visits to emergency rooms.
Companies like Microsoft and Costco provide similar house calls to their employees in the Seattle area. Carena, a private company under contract for the service, sends out doctors or nurse practitioners to assess the situation with the assistance of computer software. The software uses algorithms to help them differentiate between cases that are safe to handle at home and those that require the emergency room.
Another approach is the shared medical exam,
Changing Health Care – Is it time to consider adding shared medical appointments to your practice?
The shared medical appointment (SMA) is a health care provision model that has emerged as a desirable option for quality care. These are medical appointments in which multiple patients with the same chronic medical condition are seen as a group for follow-up or routine care (thus, patients share their appointments). The SMAs provide a setting in which patients have improved access to their clinician, the benefit of added education, and can share experiences and advice with other patients with the same disease. To address these educational needs, this program will provide practitioners with the tools to implement successful SMAs in their medical practices. This program will also stimulate participants to formulate ideas and discuss ways to increase patient access and quality outcomes when implementing shared medical appointments.
Here is How a Top Selling Self Publisher Uses Social Media
The Wall Street Journal article “Sci-Fi’s Underground Hit” says of Hugh Howey: Authors are snubbing publishers and insisting on keeping e-book rights. How one novelist made more than $1 million before his book hit stores.
Hugh Howey’s postapocalyptic thriller “Wool” has sold more than half a million copies and generated more than 5,260 Amazon reviews. Mr. Howey has raked in more than a million dollars in royalties and sold the film rights to “Alien” producer Ridley Scott.
And Simon & Schuster hasn’t even released the book yet.
Check out what Hugh has to say about how he uses social media in my interview with him.
Go to the video August 5th, 2013 entitled “That’s So Awesome!!!” Click on the picture of a three year old boy titled “What say you, little man?” You will see social media at its best.
Here is the 4 minute social interview with Hugh.
How to Enhance Your Social Media
For those who want to use Social Media in your business my friend and tax attorney of many decades Joe Cox has alerted me to a social media optimization service called helpme SOCIAL
This service provides social media management for businesses and professionals.
helpme SOCIAL manages your social media for you. They collect, curate and manage personalized content to build better communications, raise your brand’s awareness and increase revenue.
Here is a short video to show you how helpme Social can and help you grow your business!!
This era of broadband communication allows us to easily connect with like minded souls. Using this technology to create good social interaction can improve health and longevity as it improves profits and business.
More Dollar Danger Signs
The US dollar is Ecuador’s currency. If the dollar falls… all imported goods will cost more in Ecuador and we can see the future of the greenback in the here and now. There are many danger signs.. weak fundamentals, low interest rates, rising US deficits and debt, plus a risk of the first default ever. Yesterday’s message reviewed how the dollar has weakened over the past three weeks.
Stronger Dollar Danger Sign
Future currency positions are a leading indicator of a currency’s future strength.
The Friday Sept. 20, 2013 Reuter’s article “Net US dollar longs fall to lowest level in 7 months – CFTC,” says: Currency speculators cut by more than half their bullish bets on the U.S. dollar to the lowest level in seven months, according to data from the Commodity Futures Trading Commission released on Friday.
This is one more signal that the greenback is at great risk of tumbling now.
One way to protect against the dollar’s weakening is to invest in a basket of fundamentally stronger currencies that pay higher interest.
Recent posts have looked at the ENR Global Currency Sandwich as an equally-weighted anti-dollar portfolio including the Norwegian krone, Swedish krona, Singapore dollar, New Zealand dollar and gold bullion.
These are good value currencies. We reviewed the Singapore dollar in the recent post “More Problems Emerge in Multi Currency Market“. The post Are we days from Dollar Disaster reviewed the Mexican peso. Yesterday’s post Serene Success looked at the upwards potential of the New Zealand dollar.
Click on chart to enlarge and see how the US dollar has dropped over 40% versus the Swedish kroner in the past ten years.
The chart shows how the kroner has risen steadily after the 2009 fear based dollar boost and it is in a much longer term upwards trend as well.
Sweden has been the safe haven since the 2007 recession. The AAA-rated Swedish bonds are the default safest in the world for the foreseeable future.
The Swedish government bond market is the world’s safest when looking at sovereign credit risk factors such as solvency risk, external dependency and governance.
Sweden’s debt-to-GDP ratio stands below 40%. This is one of the lowest in the world. Sweden is a high-income country that has government surpluses.
Sweden’s current account surpluses are also very strong at over 7% of total GDP.
Sweden is in the EC but has its own currency so is not pulled down by Greece, Portugal, Spain and Italy.
The Swedish kroner is a good place to diversify some of your investment and savings for the next year or so when the US dollar is at risk of a large downwards slide.
Compare the fundamentals of the US versus Swedish kroner. The dollar is slightly stronger in one important fundamental, the interest rate, 2.92% for 10 year bonds versus 2.74% for Sweden. Budget deficit however for Sweden is -1.4% of GDP. The US deficit is -4%. The current account for Sweden is +7.1% of the GDP compared t -2.7% for the US. These fundamentals suggest that the Swedish kroner will maintain strength versus the US dollar.
One ETF that invests only in the Swedish kroner is the iShares MSCI Sweden Index ETF (symbol EWD).
This chart from www.finance.yahoo.com shows that the iShares MSCI Sweden Index ETF has risen 59% in the past two years compared to 43% for the Dow Jones Industrial Index and 42% for the Morgan Stanley MSCI World Index.
For more information on investing in the Swedish kroner via Jyske Bank US investors contact Thomas Fischer at Thomas@enrasset.com
Non US investors contact Henrik Boellingtoft Henrik.firstname.lastname@example.org
We’ll review various multi currency portfolios at our International Business and Investing seminar. See details below.
Wall Street Journal on Hugh Howey Sci Fi’s Underground Hit
New York Times Hi It’s Your Doctor