Michael, from The Global Assurance Blog, makes an interesting point in his A Change of Perception? article. He sees the healthcare systems all over the world as in dire need of an overhaul, gives a few example, and call for actions. Some food for thought.

Another interesting read for those who are looking to invest in these troubled times is How to Use Stock Screens and My Stock Screener Criteria by the Dividend Guy. Screening is one of the first step you should take in your evaluation process. I found this method solid.

Finally, my usual Economist articles. A lament for savers simply is the greatest article I read in a long time. It is music to my ears. I don’t want to summarize it here, so that you follow the link and go read for yourself.

Meanwhile, The new middle classes in emerging markets Special Report provides many nuggets of information as to what to expect from our world in the future. The middle class is on the rise, and its diversity will greatly impact the way our economic, social and political system will evolve. Particularly interesting for marketers and world-curious-citizens.

I wanted to share a few of articles I found very interesting with you.

The world this year, from the Economist, reflects on 2008. Despite all the dramas of the past year (Financial crisis, Georgia, Zimbabwe), 2008 will be remembered as a special year thanks to Obama. And to prove we can have a laugh even during difficult times, I invite you to play the Credit Crunch Board Game.

Deciphering the Mystery of Equity Market Bubbles, from the Credit Suisse research team, analyses the investors’ psychology factor and how it Markets. Apparently, in bubble cycles, skeptics largely exit the markets, leaving optimists to push asset values to excessive levels. The study observations are very interesting.

- Common psychological factors give bubbles similar patterns near the top and during the steep slide that follows.
- Bubbles have occurred more frequently in recent decades.
- Bubbles tend to have similar durations, with the time between the top and bottom lasting roughly 2.5 years.
- While the wind down patterns has been roughly similar, the duration has steadily become shorter, likely due in part to increased government intervention capabilities and willingness to use them.

I’ll finish with my two favourite bloggers latest gems. Two ways to deal with “no” by Seth Godin, which is a very simple, impactful and evident reminder on how to react to a rejection. And Bits Of Destruction by Fred Wilson, which reflects on the influence of the internet and new technologies in the current downturn and how it impacts the mainstream economies.

Good read !

Economics

As often, I found one of the best analysis of the past few days  to be in The Economist. Their financial crisis – What next? article is a great summary, and take a step back and try to assess the situation. Its intro is particularly punchy

Finance houses set out to be monuments of stone and steel. In the widening gyre the greatest of them have splintered into matchwood. Ten short days saw the nationalisation, failure or rescue of what was once the world’s biggest insurer, with assets of $1 trillion, two of the world’s biggest investment banks, with combined assets of another $1.5 trillion, and two giants of America’s mortgage markets, with assets of $1.8 trillion. The government of the world’s leading capitalist nation has been sucked deep into the maelstrom of its most capitalist industry. And it looks overwhelmed.

I also invite you to read their 9 page special report on the financial crisis – Wall Street Bad Dreams.

Markets

Markets are hit. They are bearish, moody and keep don’t really know on which feet to dance. A lot of my clients are calling me to check how the latest events affect their portfolio. It doesn’t for 90% of them. The reason is that we use a long term, strategic approach to investing. We are not in for the quick buck. The Lessons from the Lost Decade in Stocks article from Morningstar summarize pretty well the way we work.

Lesson One: The long haul may be longer than you think.
Lesson Two: Diversification is your friend.
Lesson Three: Dollar-cost averaging is your other friend.
Lesson Four: Save more.
Lesson Five: Minimize expenses and taxes.
Lesson Six: The past isn’t always prologue.

But there is one thing I feel is dangerous in the current market, Shooting The Messenger – in this instance, Shorting (Maybe Fred should have titled his post “Shorting the Messenger” – eheh). Shorting is seen as one of the reason for the spiraling financial situation today. But it only is viable as long as a purge is needed. Their business is to warn others, to shed light on potential areas of financial crimes. They make money cleaning up the markets. And we do have a need for a clean-up. 

Malaysia

Finally, a few words on the current Malaysia situation. Over the past few months, the government and oposition have been at each others throat. The governing coalition is facing the very real possibility of losing its grip on power to the opposition leader, Anwar Ibrahim. This change would be possible thanks to Democratic rules being enforced. A good thing. But now, both sides are playing a silly game of Bluff and counter-bluff. Let’s hope this things get sorted out before Raya (end of the Ramaddan). Raya is the most important celebration for Muslims and is a great opportunity to tighten bonds and invite everyone to share – Muslims and non-Muslims.

Trent wrote a very interesting article on what he calls the Superman Syndrome. Some people want to be financial heros – they want to save the day by paying for the group. Should you recognize yourself in this category, I highly recommend Trent’s prose. He makes many good points.

While the superman syndrom is not cool for your finance, the avare (miserly) syndrome is not great either. Britt Bravo got a great point across in her article on how giving may cheer one up. We should never forget that we are social creatures & that sharing is one of the most enjoyable thing we could do with our money.

Last quick one for the road; I just came across some reading on Benjamin Graham in the local newspaper. Mr Graham was an influential economist and professional investor. Graham influenced many investment gurus as Warren Buffett or Michael Price. He wrote two “bibles” in the Security Analysis and The Intelligent Investor. I’ll try to find them in here & do as well as Mr Buffett…