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Thursday, July 29, 2010 | |
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Lesson 11
The Investment Environment
Copyright 2005 by Milton Garber Companies do not exist in a vacuum. They exist in countries and in the world; consequently, there are both national and international factors that shape the investment environment. In general terms a favorable investment climate is one marked by peace, prosperity and predictability.
General conditions of economic prosperity favor all companies and hence all stocks. As they say, a rising tide lifts all boats. War, on the other hand, benefits companies that sell to the military; however, most companies do not and most companies prosper more in peace time than in war time. Not only war but also civil violence such as that stemming from insurrections, revolutions and organized crime are disruptive to economic prosperity. Predictability is also essential to business success and hence to the success of investments in business. A company must be able to plan with some degree of assurance regarding the continued availability of capital, raw materials, supplies, labor sources, and markets. A lack of some minimal degree of predictability, or “visibility,” with respect to a company’s business prospects is a heavy strike against that company in the minds of most investors.  Take Two Aspirins and Call Yo Mama in the Morning "An apple a day keeps the Doctor away" says an old adage, but a recent study at Brigham Young University discovered the "phone a friend" option is good for your health as well as being helpful on game shows. Researchers discovered that people with strong social relationships are 50% less likely to die early than people without strong social relationships. According to researchers, having no strong ties with friends or family is the equivalent to being an alcoholic, was more harmful than not exercising, was twice as deadly as obesity, and had the same effect on health as smoking 15 cigarettes a day. Researchers concluded that the government should "look at ways to help people maintain social relationships as a way of keeping the population healthy". I have an idea! How about: Out goes Obamacare and in comes the much more affordable "Yo Mama Care"! Consider these facts: Did you ever have a better friend than yo mama? Didn't yo mama always nurse you back to health when you were a kid, with a minimum of doctor visits? Wouldn't you be healthier today if you hadn't gone ahead and done all those things yo mama told you not to do? Welcome to "Yo Mama Care"! If yo mama is no longer around, under Yo Mama Care a network of veteran mama's would be available 24 hours a day. By the time they have raised kids, they are familiar with bumps, bruises, fevers, vomiting, diarrhea, constipation, toothaches and know what is serious enough to require escalation to the next level and what just takes time. Requirements to participate in Yo Mama Care would be minimal, but would include the following: 1. Sit up straight 2. Play nice 3. No sassing 4. Wear clean underwear (you know, in case of an accident). Another possible way to improve health and reduce medical costs might be by having friends perform simple medical screenings on each other. Example: “Fred, you got a chunk of ear wax the size of a walnut in your right ear! I’ll get that out in a minute, but right now I need you to turn your head and cough”. Maybe not. In any event, I do not recommend that women try to save money on medical costs by allowing casual acquaintances wearing t-shirts that say FREE BREAST EXAMS or I’M NOT A GYNECOLOGIST BUT I’LL HAVE A LOOK to perform any examinations. Even if they insist social relationships are good for your health based on the results of a recent study at BYU. email: aboomer@embarqmail.com -- (July 28) Email us your thoughts about our newest feature 
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