Building Bridges

October 27, 2009

In article entitled “Mentor Your Boss,” in the WSJ, the author briefly examines new ways that younger employers are contributing at work. A lot of the commentary surrounding the United States’ newest generation of workers has focused on the negative aspects of this ADD-addled group. No deep motivation to get the job done, wanting a raise right off the bat, the need for immediate recognition and ego-stroking. These characteristics have been broadly attributed to an entire generation of young adults, who are entering the job market in record numbers during a deep recession.

Employers are finding out that these whipper-snappers have a huge edge in figuring out how to maximize exposure & efficiency on social networking sites like Facebook and Twitter. Managers are turning to younger employees for new-media marketing solutions.

It’s a brief article, but worth the quick read. To me, the most important concept here is for younger employees to establish a “real” connection with their managers. A CEO who was interviewed for the article said, “Usually, I’m mentoring [younger] employees. This gives them this…powerful opportunity to mentor me so that I get to know them and to respect the talent that they have.”

Ultimately, the Olds are going to catch up with the Youngs in certain respects. How hard is it to set up a blog or a Facebook page? Not very. What’s important here is that bridges are being built between the generations to facilitate learning, improvement and a mutual understanding.

The Youngs and the Olds are going to need those communication bridges for the great Social Security Debates coming soon to a Town Hall near you!


Some Perspective

October 27, 2009

Given that the S&P 500 Total Return Index has lost an annualized 1.45% this decade, it is only natural that investors rethink their commitment to equities. Some historical perspective is helpful. The table below shows the returns of the S&P 500 since 1918 (S&P 90 before 1957):

Source: Global Financial Data

That’s right - still 10.09% annualized return over a stretch of nearly 92 years that saw horrible world wars, peace, booming economies, depressions, good politicians, bad politicians and everything in between.

We will be the first to admit that indexing may not be appropriate for everyone. In fact, many of our products follow a methodology that seeks to rotate into other asset classes during extended periods of weakness in U.S. equities. However, it hard to look at the table above and not realize that the stock market offers the masses access to one of the most effective ways to build real wealth over time known to man.


Fed Kicks Out the Stool

October 27, 2009

We are about to see an interesting collision in the bond market. On the one hand, we’ve seen record buying of bonds by retail investors this year. On the other hand, we’ve seen record issuance of debt by the Federal government. This week, on October 29, the Fed is planning to end their $300 billion Treasury support program, where they’ve been buying up Treasurys to help soak up the heavy supply. A spooky prospect for Halloween, indeed.