Market Snapshot
Podcasts

SEM Podcasts:  

Sunshine Friday, 5/18/12

Best of the Blog, 5/12/12 -- The broken banking system

Best of the Blog, 5/5/12 -- Will more spending help?

Best of the Blog, 4/28/12 -- Why are we listening to these idiots?

Best of the Blog, 4/21/12 -- Is Spain the next Greece?

Best of the Blog, 4/14/12 -- Is Bernanke a Hero or Villain?

Best of the Blog, 4/7/12 -- Signs of Addiction

Best of the Blog, 3/31/12 -- 31 Years Later


SEM Presentations:

What can we expect the rest of 2012? - April 19, 2012

What will 2012 look like? - January 9, 2012

Are we headed towards recession? - October 7, 2011

What is happening with the economy? - September 26, 2011


SEM on the Radio:  

Peter McClellan Show, 3/23/12 -- Is it really disappointing?

Peter McClellan Show, 3/16/12 -- Is it time to buy Apple?

Peter McClellan Show, 3/2/12 -- Dow 13,000 -- Is it Time to Party?

Peter McClellan Show, 2/23/12 -- Why has the market rally stalled?

Peter McClellan Show, 2/17/12 -- Are we learning anything from Greece?

Peter McClellan Show, 2/10/12 -- Angry?  So are we.

Peter McClellan Show, 2/3/12 -- Is employment recovering?

Young Professionals Show, 2/1/12 -- Generational Differences

Peter McClellan Show, 1/27/12 -- Dissecting GDP & the Fed

Peter McClellan Show, 1/19/12 --Why aren't the big institutions buying?

Peter McClellan Show, 1/13/12 -- Should we be concerned with government debt?

Peter McClellan Show, 1/6/12 -- 2012 Outlook

Peter McClellan Show, 12/23/11 -- How SEM manages money (with SEM founder Rick Gage)

Peter McClellan Show, 12/16/11 -- What can we learn from 2011?

Peter McClellan Show, 12/9/11 -- Will the Grinch Steal Christmas?

Peter McClellan Show, 12//2/11 -- The Global Ponzi Scheme

Peter McClellan Show, 11/18/11 -- The failure of the Super Committee

Peter McClellan Show, 11/11/11 -- What is the bond market saying about stocks?

Peter McClellan Show, 11/4/11 -- Certain Uncertainty

Peter McClellan Show, 10/28/11 -- Did the market go too far too fast?

Peter McClellan Show, 10/21/11 -- What does the violence around the world mean for the market?

Peter McClellan Show, 10/14/11 -- Should we be worried about the Occupy Wall Street movement?

You & Your Money, 10/8/11 -- What happened during the 3rd quarter?

Peter McClellan Show, 10/7/11 -- Are you enjoying tracking your investments?

Peter McClellan Show, 9/30/11 -- 3rd Quarter Recap / 4th Quarter Preview

Peter McClellan Show, 9/26/11 - Is this sell-off a buying opportunity?

Peter McClellan Show, 9/19/11 - Are European problems solved?

Peter McClellan Show, 9/9/11 - Is the Euro about to collapse?

Peter McClellan Show, 9/8/11 - Are the problems in Europe overblown?

Peter McClellan Show, 9/7/11 - Can we avoid a recession?

Peter McClellan Show, 9/2/11 - Reality Check for the Market

Peter McClellan Show, 8/29/11 - Is the Market Giving Us False Hope?

Peter McClellan Show, 8/26/11 - Will the Fed Save the Stock Market?

Peter McClellan Show, 8/19/11 - Is it time to panic?

Peter McClellan Show, 8/12/11 - Why is the market so volatile?

Peter McClellan Show, 8/8/11 - What does the debt downgrade mean?

Peter McClellan Show, 8/5/11 - Should we put on our hardhats?

Peter McClellan Show, 7/21/11 - The Debt Ceiling Circus 

Peter McClellan Show, 6/16/11 - What if Voters Ran the Country?

Peter McClellan Show, 6/7/11 - The Sales Process

Peter McClellan Show, 5/25/11 - Does Greece Matter?

Peter McClellan Show, 5/6/11 - The Delusion of Stimulus

Peter McClellan Show, 3/10/11 - The Power of STUPID People

 

Peter McClellan Show, 2/25/11 - Can the Fed Save the Market?

Peter McClellan Show, 1/24/11 - Saying NO to Your Kids

Peter McClellan Show, 1/17/11 - Pensions: Can You Count On Them?

Peter McClellan Show, 1/5/11 - Taking Control of Your Retirement

Peter McClellan Show, 12/21/10 - 2010 Review & a Look Ahead

Peter McClellan Show, 11/24/10 - Tracking the Economic Recovery

Peter McClellan Show, 10/7/10 - Is the Coast Clear or Is There Another Crisis on the Way?

Peter McClellan Show, 9/28/10 - Disappointments in Retirement

Peter McClellan Show, 9/27/10 - Taxes & Politics

Peter McClellan Show, 9/15/10 - Taxes, Stimulus, & the Deficit

Peter McClellan Show, 9/9/10 - Inflation or Deflation?  How to Structure my portfolio.

Peter McClellan Show, 8/17/10 - Investor Confidence in Market

Peter McClellan Show, 7/29/10 - Understanding Social Cycles

Peter McClellan Show, 7/9/10 - Sunshine's Weather Forecast

Peter McClellan Show, 6/11/10 - A Critical Summer

Peter McClellan Show, 5/10/10 - The "Flash Crash"

Peter McClellan Show, 4/29/10 - Greece & Goldman Sachs

Peter McClellan Show, 4/5/10 - Areas of Economic Growth

Peter McClellan Show, 3/9/10 - A Look at the Recovery

Peter McClellan Show, 2/4/10 - What is Active Management?

Peter McClellan Show, 1/29/10 - Things to Watch for in the Economy

Peter McClellan Show, 1/21/10 - Engineering Your Portfolio

Peter McClellan Show, 12/28/09 - Year in Review & a Look Ahead

Peter McClellan Show, 12/14/09 - Does Buy & Hold Investing Work?

Peter McClellan Show, 11/24/09 - Why We're Thankful

Peter McClellan Show, 11/05/09 - Is Wall Street Selling?

Peter McClellan Show, 10/27/09 - Economic Outlook

Peter McClellan Show, 9/29/09 - 3rd Qtr Review & 4th Qtr Outlook

Peter McClellan Show, 9/25/09 - Psychology of making decisions

Peter McClellan Show, 9/17/09 - The "Inflation Trade"

Peter McClellan Show, 8/31/09 - The Pending Forest Fire

Peter McClellan Show, 7/23/09 - End of the Recession, Pt 2

Peter McClellan Show, 7/22/09 - End of the Recession, Pt 1

Peter McClellan Show, 7/7/09 - How to Structure Your Portfolio

Peter McClellan Show, 6/25/09 - Active vs. Passive Management

 

 


Making Sense of a Tragedy Print
Written by Jeff Hybiak   
Monday, 09 January 2012 05:09

Yesterday was already the one year anniversary of the shooting of Gabrielle Giffords.  While most of the country has already forgotten, here in Tucson the wounds still feel fresh.   Here is what I wrote a year ago, followed by some additional thoughts on this anniversary.

Originally published January 9, 2011

Saturday's shooting of Congresswoman Gabrielle Giffords and several innocent bystanders was shocking.  It has left me a little bit numb and searching for words to describe all the thoughts crossing through my mind.

To have something like this happen to your Congressional representative in your hometown is a little surreal.  We just had lunch on Friday with several of our business partners that were in town for a conference less than half a mile from where the shooting took place.  The bank where I used to work is on the opposite corner of the shopping center and I used to drive to that Safeway on Saturday mornings to buy a copy of Investor's Business Daily

While I shared our country's anger when I first heard of the shooting, sadly it was not a surprise to me that something like that would happen.  I've been studying social cycles for many years now & it is something I have touched on several times over the past few years.  Most recently I described the "social strife" we are experiencing and said we are at a point where the whole world is in a "bad mood".  It typically gets much worse before it gets better.


Last July I was on the radio discussing the Social Cycles and how they impact our country.  You can listen to the replay on  our Podcast page if you want to gain a better understanding of the cycles and what they mean for our future.

Historically our country has seen about an 80 year cycle, divided into 4ths where the various generations play an important part in the events that play out.  Typically the first and third portions of the 80 year cycle are peaceful and prosperous, although with different drivers.  The 2nd & 4th portions are marked by major social changes, political upheaval, and many violent events.  The key difference is the age of the various generations at the time.

Every 80 years there has been an "ideological" generation that is born following a major crisis in the country.  They are treasured and protected as youths as the country is fragile and recovering from a major crisis.  As they enter young adulthood, this generation begins to feel oppressed by the "sameness" that is prevalent and begins to seek changes to society.  Often times those changes are met by fierce opposition from the elders, resulting in violence.  Think back to the 60's and 70's and how violent our country became.  Civil rights leaders, Congressmen, and even the President had attempts made on their lives.

The 4th period of the cycle is also marked by violence and upheaval, but it is typically much worse than the awakening period 40 years earlier because the problems that built up over the prior portions of the cycle are coming to a head.  There is a tremendous gap between the wealthy and the middle class.  The aging ideological generation is trying to get some last minute things accomplished, which creates a large divide politically.  The generation next in line to run the country is trying to figure out how to fix the mess.  So many people are upset about the situation our country is in and the lack of progress towards fixing the problems.  The country becomes very polarized and it results in outbreaks of violence that we thought were not possible in our life times.

I always end these discussions on the social cycle with a reminder that while things may get worse from here, they will eventually get better.  I hope it is sooner rather than later, but I've already heard people (including Pima County's Sheriff - a very liberal Democrat as well as Paul Krugman of the New York Times) blame the people on the far right for inciting this violence.  Pointing the finger at the other side does not help solve the problem, it only makes it worse.  The shooter was an unstable person attacking our democracy.  No more, no less.

What has left me somewhat baffled is that Congresswoman Giffords is part of the next generation of politicians.  In the political spectrum, she is just to the left of center, a far cry from the extreme ideological positions that have been prevalent the past 10 years from the older generation of politicians.  Of the representatives I have written to she not only was the quickest at responding to the inquiry (typically in a matter of days), but she was the only one that didn't send a form letter type response.  Sadly it was her openness to communicate with her constituents that allowed this tragedy to occur.

Our prayers are with Congresswoman Giffords along with all the other victims and their families.  Hopefully this will make our country stronger and make us all realize that what makes our country great is our ability to elect our representatives and then to let them know our opinions on various subjects.  When people start using violence to voice their opinions we are no better off than a third world country. 



January 9, 2012

Unfortunately, throughout 2011 the Social Uprising became worse.  Shortly after the shooting the "Arab Spring" movement took hold.  The "unity" in Congress quickly went away and we dealt with widening polarization that was highlighted by the summer Debt Ceiling Circus.  Shortly thereafter we had the birth of the "Occupy" movement that has further divided our country.  Many historians have said that the political environment in the United States has not been this divided since the years leading up to the Civil War.  As somebody that has studied the Social Cycles, that does not surprise me as that was also a time we were entering the "Crisis" stage of the generational cycle (as was the Depression and World War 2).

I truly hope that things do not get as ugly in our country as it did during past Crises, but the developments in 2011 certainly are not helping.  I was hopeful that the 2012 election would bring to us the type of candidates that could start enacting the changes that our country needs to move through this crisis.  Unfortunately, the only "establishment changing" candidate happens to be the oldest one in the bunch (Ron Paul).

Our country MUST change.  For 30 years we used the "me first" attitude that has caused our country to amass an unprecedented amount of debt for every man, woman, and child (now approaching $50,000 each).  We've lost our 'AAA' rating and show no signs of slowing down the deficit spending because everyone is afraid of making a change.  In all honesty, do we really expect the generation that ran up this huge debt burden all while continuing to vote for policies that ensured a cushy retirement for them to actually make changes that would impact their retirement years?  The mantra for 30 years has been to avoid all short-term pain regardless of the long-term consequences.

People often ask me about the possible economic outcomes based on which party wins the election.  In all honesty, unless Ron Paul is president and Tea Party type Republicans control the Senate & House, it really doesn't matter.  We're going to continue to see the same type of leadership that got us here to begin with.  That means that our government will do everything possible not to upset the Baby Boom generation regardless of how much it costs the next two generations.  That means that we'll likely continue through this cycle where the gap between the haves and the have nots continues to widen until our country reaches the breaking point and we are FORCED to make fiscal changes that will be painful for EVERYBODY.

Don't get me wrong, Ron Paul's proposed fiscal policies (that could only be enacted if Tea Party Republicans control Congress) would be painful for EVERYBODY over the short-term.  The key difference though is that it is always better to make changes by CHOICE rather than being forced to make them because you ran out of other people's money.  The entire Global Financial System is nothing more than a Debt Ponzi Scheme.  We all know that Ponzi Schemes end badly, yet most people are unwilling to admit this.

Instead people continue to believe that with enough "time" we can work through this.  All the while the scheme continues to pilfer money away from those on the fringe -- those that are barely scraping by, but not receiving government aid and those that are not yet old enough to vote.  Meanwhile, the polarization in American continues to expand to all areas of life -- something very common during the Crisis stage of the Generational Cycle.

Yesterday's anniversary of the shootings in Tucson was a perfect example.  Having been born in Colorado and living there for 24 years, I've always been a Broncos fan, so of course we were in front of the TV yesterday watching their first playoff appearance since 2005.  Following an exciting overtime victory the local CBS station quickly switched to a special they had produced for the anniversary of the shooting.  Having watched and read enough about the shootings all weekend, I flipped over to ESPN and logged onto the internet to see what people were saying.

I'm obviously very biased.  Being a Christian and admiring Tim Tebow's career and personal life while in college, my oldest son and I (the only one in my family that has been cursed/blessed with a passion for the Broncos -- he too was born in Colorado) were ecstatic when the Broncos drafted the Florida Quarterback.  We knew that since John Elway retired the Broncos lacked leadership at the Quarterback position and Tim Tebow is a leader.  Granted, he does not have the fundamental gifts that a "normal quarterback" has, but they guy obviously knows how to win and competed in the toughest college football conference in the country, winning two national championships.

What amazes me is how polarizing this one man has become.  If you had told somebody back in October when the Broncos were 1-4 that they would not only make the playoffs, but they would beat the Pittsburgh Steelers, they would probably have called the insane asylum.  Since taking over the 1-4 team as starting Quarterback, Tim Tebow has given the Broncos a spark they have not had since the great John Elway retired.  They finally had a LEADER.

He has certainly gained a lot of fans over the past 12 games, but even after an improbable victory against one of the most successful franchises in NFL history, led by one of the most successful playoff quarterbacks in history, and against a defense that is coached by one of the best defensive coordinators in history, the voices of his detractors are just as loud.

Maybe it is because he is threatening the "status quo".  His style is certainly not textbook, but it has led to 8 victories in 12 games.  Many of his detractors certainly do not like how vocal he is about his religion and about the clean life he is living.  He is by no means perfect (nobody is), but seeing somebody that strives to live his life the "right" way even in the face of so many worldly temptations is refreshing for some, but it also can highlight our own imperfections.  How Americans have reacted is a perfect example of where we are at as a country.

Some people see the example of Tim Tebow and praise his morals while striving to be a better person.  Others instead of addressing their own flaws, attack him and hope for his failure.  When Tim Tebow losses there are no excuses.  He doesn't blame God, he blames himself.  Following a 3 game losing streak, he constantly thanked God for the OPPORTUNITY to fulfill his dream and then said "I need to start working harder," "I need to start making better plays," "I need to get better."

Our country would quickly be able to turn things around if we all had that type of attitude -- whatever situation we are in, we have a choice -- we can either make an excuse or we can thank God for the opportunities we have and then vow to do everything possible to make the best of the situation.  Attitudes like that are infectious. 


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