Winter 2011 COE Update

 

It’s Time for Leadership!

One need look no further than the San Francisco 49ers to see the impact that good leadership can have on an organization or community.  Following several dismal seasons, a new coach has brought the team and a winning attitude back to life.  As the 49ers head into the playoffs, they are arguably one of the best teams in the NFL.  It seems that most of the players and staff are the same, but there is a new leader in town.

 

So, why do we continue to see the constant state of uncertainty in bold headlines every day?  It appears that the leaders in Washington and in Europe are reticent to make the necessary and tough decisions needed to provide confidence that the world economic woes are being addressed.  While each individual has an idea about how to right the ship, we are lacking a comprehensive game plan which all players are willing to get behind.  And while improvement is coming in fits and starts, consistency in message and action are critical to restoring confidence and, in turn, the economy.

Despite the dour headlines and lack of cooperation by those whose job it is to lead us, there is good news that is being hidden behind the “fog of emotions”.

 

  • Corporate profits are the highest share of GDP since 1950
  • There are record levels of cash on corporate balance sheets (over $2 trillion)
  • Consumers are still increasing spending, AND saving more
  • Global profits are expanding as international markets dictate higher consumption

 

Some of these underlying facts should help put our fears of economic meltdown at bay, but the inconsistency in message by our leaders in so many other areas are forcing emotions into the equation daily.

 

The lesson to be learned is we cannot control the markets, but, we can control how our investments are positioned within them.  We can hold firm to the facts and look through the “fog of emotions” to take advantage of opportunities as they present themselves.

 

Let us all take this lesson as we head into the holiday season, sustaining a similar philosophy – let go of the situations that are out of our control, and do something about the things that are.  Take these times to truly be grateful for the friends and families and good things in our lives and do what we can to work positively towards a solution.  We all have the ability to be accountable within our own lives.  Through leadership we can show and teach how to have a positive impact on others we encounter along the way.

 

Merry Christmas and Happy New Year to all our friends and families!

 

Sincerely,

Bob Krieger
CEO, Perennial Pension & Wealth

 

Securities offered through LPL Financial, Member FINRA/SIPC