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A year ago I interviewed Mark Thomas of Economist’s View blog about the Great Moderation.  (You can listen to it here by scrolling down to the bottom.)  For you non-economists, the Great Moderation is the period of calmer economic activity that we’ve experienced since 1983.  Quarter-to-quarter changes in GDP are closer to average, the frequency of recessions has gone down, and the severity of recessions has become less.  It’s pretty cool.

With the recent turmoil in the economy, I was curious if he had changed his views about whether the Great Moderation was continuing, and would continue.  You can listen here.For a graphical view of the Great Moderation, I calculated the standard deviation of quarter-to-quarter changes in real GDP over rolling 5-year periods.  It’s stunning how much we’ve calmed down.

Bill Conerly
Creator of Businomics Blog
Ashworth University Contributing Blogger

*Bill Conerly is one of the most respected and trusted Business bloggers on the Web.  Mr. Conerly’s in-depth analyses are based on “real world” applicability, a communications’ style he has honed through years of professional experience. We’re honored to have Bill Conerly as a member of the Ashworth University Blog contributors network. To learn more about the life and work of Bill Conerly, visit his acclaimed Businomics Blog.

              Thanks to Mzelle Biscotte for permission to use this Photo. 

Any organization in which you find employment will have a variety of managers who have a variety of responsibilities.  A typical business will have sales, operations, financial, and other types of managers, each with a different viewpoint on what it takes for the company to succeed.  In smaller enterprises a manager may wear several of these hats.  In a large corporation managers tend to be more specialized, either as to their duties or their geographic area or product line. 

These managers speak different “languages” and sometimes the result can be a virtual Tower of Babel.  For an example of this, you might try sometime asking an accountant, a plant supervisor, and an engineer what it costs the company to make a particular product.  Having completed this course you should now be able to communicate effectively with a financial manager, and you should also know how to read and interpret financial statements, determining what they’re telling you and what they aren’t.  Armed with these skills you now have the ability to ask the right questions to make better decisions both as a manager and as an investor.  And you can appreciate why the accountant, the plant supervisor, and the engineer would look at “cost” differently.  You needn’t expect them to all agree, so long as you recognize how you need to view the cost of a product. 

Whatever profession you choose, if you’re not already tied to one, you’ll need to master its language and those of professions tied to individual departments, as well.  These could include production, purchasing, materials management, human resources, sales and marketing, and even corporate legal disciplines.  This is the purpose of a general business education such as the one you are pursuing at Ashworth University. (more…)

                      Image courtesy of jeff magnum-orange twin.

From Brian Grinonneau:

Dare to be different. A look at why advertising professionals should consider standing out from the competition, not copying them. To make your advertising work, follow the principle if your competition is doing it, don’t.  To succeed in today’s crowded marketplace where most of the products and advertising look exactly the same, a small business owner must stand out, shouting above the din with a message so clear and compelling that prospects stop and take notice. It’s a matter of business survival. Unfortunately, most entrepreneurs quickly retreat to the supposed security of sameness, soon to be lost in a sea of anonymity and a tidal wave of frustration.

In effect, albeit at a subconscious level, they are saying , “I don’t want to be different”. In back room offices and store fronts everywhere, salespeople are telling business owners they should do this or that kind of ad because it worked so great for their competitor. The owners nod and sign on. It’s already proven to be a winner, right? WRONG! Change the name, background color and a font style and you’ve got sameness. Put those ads in the yellow pages, a coupon magazine or a TV commercial cluster and you’ve got advertising death. Want proof? Get the latest statistics on small business failures.

About the author: Brian Grinonneau is the general manager of McMann and Tate advertising, an agency that works with small business owners helping them stand out from the crowd.

Article Source: http://EzineArticles.com/

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To read more of Brian Grinonneau’s  great article, login to the Ashworth University Career Center through the student portal and click here. 

Ryan Rode
Interactive Services Manager
Ashworth University

                Thanks to Len Peralta for permission to use this Photo. 

As the deadline for completing 2007 tax returns approaches, more and more people are filing returns each and every day. Once the headaches of making sure all your information is accurate and all your paperwork has been submitted, you should know in advance if you can expect a tax refund this year. As with any income, it’s a good idea to think about what you’re going to do in advance and make a plan for how you will use it. We always quote the saying that “no plan is a plan to fail,” and it seems true that many of the worst financial decisions are those made compulsively. Since tax refunds are getting turned around more quickly than ever these days, take the time in between when you file and when you receive your refund to really think about what you’ll do with the money you get back. 

Here are seven ideas we at 22Dollars brainstormed to help get the wheels turning when it comes to your 2007 tax refund: 

* Deposit it in your savings account to help you meet your savings goals.

* Spend it on something you’ve needed to buy for a while and that will help save you money in the long run – like a fuel efficient car for example.

* Invest it in your retirement fund or in stocks you’ve researched.

* Pay it toward debts you have such as school loans or credit card debt to help yourself avoid spending additional money on interest payments. (more…)

              Thanks to Luis Ramirez for permission to use this Photo.

It isn’t adequate to say ‘I am a long-term investor’ and I don’t need to pay attention to the impending financial turbulence.

But how do we deal with this? How do we respond to as well as anticipate market action? How do we preserve our capital during market corrections while being able to maximize our exposure to equities during market bull runs?

After many years of investing (I actually purchased my first stock as a 13 year old back in 1967), I have come to believe that a strategy is possible to accomplish this if you are willing to be disciplined and observant of your own stocks and of the market overall.

First of all, try to identify a universe of stocks that you believe are ‘investable’. I have my own criteria of consistent revenue growth, earnings growth, free cash flow, stable shares, and a solid balance sheet. But my criteria may not be yours. You might develop a list of stocks that exhibit good value, that exercise responsible stewardship of the earth, or whatever your particular preference might be. It doesn’t really matter. But stay consistent.

Next of all, decide what the size of portfolio would be ideal for you. I initially settled on 25 different stocks. Currently I have switched to a 20 position portfolio as a maximum number of stocks I wish to own. It doesn’t matter what the size will be. But pick your maximum and stick to it.

Now bear with me as I go through this strategy. It makes sense to me and I think you will understand my thinking as we review this.

Let us assume that our investment posture will vary with our ‘exposure’ to stocks. That being fully invested is ideal in a strong market (20 positions). And being minimally invested is best in a weak investment environment (5 positions). And I vary my investment exposure based on the market’s effects on my own holdings. That is when my own portfolio is acting ‘healthy’ I am moving from cash towards equities and when my own portfolio is acting ‘ill’ I shift from equities towards cash. (more…)