|
Resources
From January 2010 Issue
-
I fault myself for the fact that last month’s issue went to press (and my
list of the top ten books of 2009 was published in Financial Advisor)
before I’d had a chance to read Brian Wesbury’s brilliant, beautiful It’s Not
as Bad as You Think: Why Capitalism Trumps Fear and the Economy Will Thrive
(Wiley, 224 pps. $24.95). I particularly regret that I didn’t catch it in time
to say what a great holiday gift it would have made. But, heck: give it to ‘em
anyway. You must have gotten awfully tired (as I admit even I did) last year,
being the one optimistic voice crying in the wilderness of your clients’
benighted lives. And there will be many apocalypses in the jours to
come—lunatic deficits, resurgent inflation, wildly increased taxes, the health
care boondoggle, the environmental fascism of cap and tax—against which you’ll
find that Brian’s clear-eyed long-term optimism will prove very effective (if
anything will) at inoculating your clients, and even yourself. It is far too
easy to forget that democratic capitalism is a much stronger and more enduring
force than collectivist statism (where is the Berlin Wall of yesteryear?). Brian
Wesbury—who commands the priceless gift of writing just the way he talks—offers
the most accessible, refreshing, insightful and even inspiring reminder which
you and your clients are ever likely to see.
From February 2010 Issue
-
I spoke at some length the other day —for the first time in quite a long
time—with Darci Hemsley Brown, who has continued to deepen and expand her father
Aaron Hemsley’s seminal work in the psychology of prospecting avoidance, and in
sound, practical remedies for self-defeating behavior. I came away from that
conversation more firmly convinced than ever that Darci’s ten-week behavioral
coaching program (which includes both a lot of prior consultation and a year of
follow-up) is the only lastingly effective program of its kind. I am generally
opposed to coaching of all kinds, and the more complex and expensive the
coaching program, the more impracticable I think it is. If you seriously wish to
make meaningful improvements in your business, and you don’t have a major
prospecting effort in place that you’re joyously pursuing, your goals are
disconnected from your behavior. And Darci’s program is the single best
investment you can make in your career in 2010. (It is also, as I told her,
seriously underpriced.) Darci has three school-age children, and can only coach
a maximum of eight people at a time, so you may have to get in the queue. My
advice would be to get in the queue. Darci may be reached at
ahinfo@aaronhemsley.com.
From February 2010 Issue
-
With just a couple of caveats, I can warmly recommend Gregg Easterbrook’s
Sonic Boom (Random House, 243 pps., $26). Mr. Easterbrook’s thesis is
that globalization has barely begun, and that as it reorganizes and even
revolutionizes the world over the next decade and beyond, it will produce
wealth—and spread that wealth farther and wider—than we can yet imagine.
He tells the story of globalization through the lens of a number of different
cities, beginning with Shenzen, China—a city that did not exist thirty years
ago, and now has far more inhabitants than does New York, much less London or
Paris, cities that took centuries to develop. But he also refers to such old and
previously-declared-dead cities like Waltham, MA (now a high-tech and venture
capital hotbed) and Erie, PA, where GE now produces fuel-efficient and
environmentally friendly locomotives, which the world buys as fast as the
company can turn them out.
Mr. Easterbrook forcibly reminds us of many important but—in the current
catastrophist environment—too easily overlooked verities. Among these are that
85% of economic growth now comes from new ideas (per the American Academy of
Sciences). He also points out that in 2007, companies that were seeded by
venture capitalists provided nearly ten and a half million jobs, and generated
$2.3 trillion in revenues, about equal to the GDP of France.
Remarkably for such a clear and forward-looking thinker, Mr. Easterbrook has
entirely imbibed the Kool-Aid of "inequality," and apparently thinks CEOs are
overpaid paper pushers who shouldn’t make more than about a million and a half
dollars a year. (Really, Mr. E? Wasn’t it a CEO who went against all the
"wisdom" of Wall Street analysts and kept that locomotive plant in Erie?) But
you’ll be well rewarded for getting past those odd and uncharacteristic lacunae.
This book is a gem, and every advisor needs to read it.
From Janauary 2010 Issue
-
As a longtime reader recently observed, I virtually never review books about
the more technical aspects of financial planning. He asked why. I replied that
there are two reasons: I haven’t kept up with the technical aspects, and I was
never that interested in them, anyway. (I always felt that some salaried expert
on my firm’s staff, or that of one of its vendors, knew the technical issues not
only better than I did, but better than I wanted to.) So I was knocked out, and
quite surprised to be knocked out, by Deborah Jacobs’s self-published Estate
Planning Smarts: A Practical, User-Friendly, Action-Oriented Guide
(DJWorking Unlimited, Inc., 352 pps., $19.95). This is a book for you to own and
read, and to give to clients as a basis for discussion of a wide range of
planning issues. It is everything its subtitle claims: simplifying complex
issues, humanizing them in terms not just of money but of values, and
personalizing them with anecdotes about the estate plans of, among others, Paul
Newman, Jacqueline Kennedy Onassis, and Chief Justice Warren Burger. There are
action-oriented to-do lists at the end of each chapter. And thinking ahead to
the inevitable changes in law and regulation, Ms. Jacobs will be constantly
providing updated chapters that can be downloaded at
www.estateplanningsmarts.com. There are volume discounts, and the book can be
customized or personalized in a variety of ways. Estate Planning Smarts
is really a terrific resource for advisors.
From February 2010 Issue
-
There has been quite a lot of controversy lately—and even more
confusion—about long-term equity returns, both absolutely and relative to those
of bonds. (Such naysaying of equities has always been, and will most assuredly
always be, an indispensable requirement of all truly historic equity market
bottoms.) You will find a great deal of lastingly helpful clarification of this
issue in Jeremy Siegel’s beautifully argued December 28 essay, "Yes, Stock Data
Do Go Back 200 Years." It’s a keeper: the financial/intellectual equivalent of
breathing pure oxygen.
|