Does Less Bad = Good?

Last week, it was announced that July’s Job losses were only 247,000 and so the the Dow rallied over 100pts. Well hurrah for that! There was me getting worried about the level of job losses in the US only to be reassured that July was not as bad as expected. What was the expected figure…300,000!

Now, here comes the big question. Does less bad = good? Should we really be getting so excited that the US is only shedding 247,000 jobs? Of course not and here is why. The US has thrown close to $14 trillion into bailouts and stimulus programs over the last 10 months or so, and yet are STILL losing hundreds of thousands of jobs each month. Sure, things will look better for a while, as all of these trillions have to go somewhere but at the end of the day it is highly conceivable the US will be left with a bankrupt system while job losses continue to grow. Some are convinced that this is the case and it is only a matter of timing!

I for one cannot disagree with this. I am fearful for what lies around around the corner globally and think we will have to suffer the consequences for the levels of debt etc which we have engaged in. That is why you need to be vigilant, particularly now as the markets look to be approaching precarious levels. Do not just jump into the markets in fear of missing out on what you think could be “easy money”. Remember, it is usually the ordinary individuals that get caught out in these bear and bull market rallies due to their lack of discipline or their failure to plan and adhere to a strategy.

For those of you who believe your jobs are vulnerable in this current economic climate, you need to determine how you will handle a worse case scenario. This is exactly what I did and I am now confident that no matter what the economy throws up, I have insulated myself. It is a reassuring position to be in so please, ensure you considering the near term future today.

Everything A-Ok?

As of last Monday, 82% of the S&P Companies that had reported 2Q earnings had beaten expectations. Hardly surprising so that we saw the markets rally. Could it be that the dreaded recession is a thing of the past and the global economy can now gather momentum as companies see earnings continue to grow?

Unfortunately, it is highly unlikely. First of all, those figures are being compared to a very low base so lets not get too excited. Also, when you dig a little deeper, you notice that only 50% beat revenue targets. So, at this present time, earnings are only being held up shrinking costs. While businesses streamlining costs is a good thing, for a true  recovery, sales need to start growing too. With unemployment rising, this will be harder to achieve.

Nearly 60% of U.S consumers expect higher unemployment to persist over the next few years, the University of Michigan reported last Friday while Federal Reserve Chairman Ben Bernanke also warned last week that unemployment could weigh on consumer spending. If these gloomy scenarios persist, which seems highly likely, then companies sales will continue to struggle. The more sales lag behind expectations, the more pressure companies will be under to further cut costs. Ultimately, they will not be able to keep cutting staff without sacrificing the potential of the business itself.

While we have seen a wave of positive sentiment in the markets recently, which is encouraging, the bigger economic picture has not changed. There is a need to be vigilant in such times and really put things into perspective. Things are less bad, but still not good. There is a long way to go before we can say we are out of this recession and my fear is we have much further difficulties to face up to over the next 6-12 months.

Unemployment In The US Set to Soar?

First of all, lets rewind back in time shall we?

The year is 1929 and the stock market has crashed from 381 to 199 only to be followed by a rally back up to 294, a full 48% gain from the lows. “Buy, Buy, Buy” were the screams emanating from the bullish stock advisers. Surprise, Surprise though, their optimism was premature. From 1930-32 the market fell a further 88% from the 1929 highs. But what of unemployment? Well, it wasn’t pretty. Take a look at the figures below!

1929: 3.2%

1930: 8.7%

1931: 15.9%

1932: 23.6%

1933: 24.9%

1934: 21.7%

1935: 20.1%

Now, fast forward to today. Having lost 50% of it’s October 2007 highs, an incredible bear market market rally started in March 2009. So much so, it climbed 43%, albeit on weak volume which is typical of a bear market rally. And unemployment?

2007: 3.4%

2009 (so far): 9.5%

If history is repeating itself, it doesn’t look good does it? However, there is more bad news. The Bureau of Labor Statistics also tracks a second unemployment rate, a much broader range which includes all forms of job market slack. This figure, brace yourself, is at this moment in time 16.5%!!!! Think about that figure….1 in 6 Amercians is unemployed or underemployed now.

Green shoots of recovery? You don’t need a finance degree to determine this!

What’s Next For The Global Economy?

It wasn’t all that long ago that I decided to walk away from my job as an Investment Analyst at an Asset Management firm and to focus my efforts on preparing for what this recession is going to throw at us and that to me is quite obvious….Mass Unemployment!

To me, a JOB simply stands for Just Over Broke! If you have the ability to do something, then why do it for someone else? The reason for most is that they don’t have the courage or the financial backing to take the chance of going it alone. However, while you may think you are playing it safe by hanging on to your job and saving your pennies, it is in fact the complete opposite. I agree with the likes of Robert Kiyosaki and Donald Trump when they speak of the ever shrinking middle class. Now think to yourself…are you part of this shrinking middle class? If unemployment were to come knocking on your door, if Social Security was all but wiped out and if taxes ballooned, would you be adequately positioned to cope?

My guess is the majority of you will say no but don’t worry, I too was like this before I took control of my financial future. In their book, “Why We Want You To Be Rich”, Robert Kiyosaki and Donald Trump endorse the idea of an Internet Marketing Business (Chapter 27, Page 305 if memory serves me correctly). The reasons are quite simple; it allows you to start a business for much less cost than a typical brick and mortar type business or franchise. In addition you have no employees, no overhead costs and you have the flexibility to work from anywhere you please. I chose to follow this route. I decided I will dictate my success in life….not some boss and not some government….ME! You will never grow rich by working for someone else so start taking action today.

Granted, an Internet Marketing Business is not the perfect fit for everyone. However, if you are self-motivated, ambitious and dedicated to creating a life of financial freedom and prsoperity, then you owe it to yourself to research your options. Do not trust the so called “experts” on TV telling you everything will recover shortly. These guys are praying that is the case becasuse otherwise, their jobs become obsolete. It doesn’t benefit them nor governments to give you the honest truth because in reality, if we all really knew, it would probably create huge panic and fear. However, you are different! You don’t have to follow the herd! You have a choice! And I can present you with one of those choices.

Visit me here at www.BrooksWealthMaster.com and think about it. I am even going to give you my email address; brookswealthmaster@gmail.com so you can email me any questions you may have. In fact, if you would like to speak with me, I am sure we can arrange that also. One word of caution though; if you are not serious about talking control of your financial future, this venture is not for you. If you are not willing to treat this as a business and instead a hobby, you will fail. There is no level of expertise required (I started from scratch) but you MUST, and I stress MUST, be willing to learn and adopt a whole new level of thinking. You must have the faith in your own ability to succeed and you must place value in your level of expertise.

That is all for now. Feel free to leave your comments, good or bad, and I will endeavor to respond.

How to avoid Online Home Based Business Scams!

Here is a quick summary of the top three things you need to consider before you align yourself with an online home based business:

1) People: You must ensure that the people you are aligning with are reputable and honest. The more public information you can find on the people behind the business venture the better. It is worthwhile checking social sites like My Space, Facebook and Squidoo for the people involved.

2) Product: There must be a product and the product must offer value. In today’s world, financial stress and education is a dominant issue so you could for instance look to align yourself with opportunities that aim to solve this problem for people. I would sincerely advise you not to sign up to any offer that does not provide a product which does not provide obvious and transparent value.

3) Support Staff: I don’t care who you are, you will at times face uphill struggles and need to rely on others for help. Therefore, if you align yourself with a group without a dedicated support staff, you will most likely feel alone and grow frustrated when you encounter problems. The result is you will fail like 95% of the rest of individuals. You should have access to live calls, a dedicated support team and also, you should be able to contact some of the higher consultants from time to time.

Remember, if the new online home based business you are looking to align with does not tick all the above boxes, steer well clear. If you would like more information on an opportunity I can personally recommend based on these criteria, please click here.

Hello world!

Welcome to the Brooks Wealth Master Blog, where we aim to empower you with some of the steps and techniques needed to succeed with an online business today. We will also help you identify some of the things you need to be aware of to ensure you do not fail like the other 95%.

The goal of Brooks Wealth Master is simple and transparent: To lead 20 people to earn $50,000 per month. This will be done in alliance with what is in my view the most powerful online business based opportunity today. For more, click here!