3 Horrific Risks To The Stock Market

A number of events, analysts say, could quickly trip up the post-election surge in U.S. stocks.

“The market is wading through all the negatives of his campaign, and (economic growth) is what we are focused on,” she said. “But if history is any guide, the honeymoon always ends.”

Here are some of the possible events that could give investors pause:

1. Disappointment in Trump

The first test will likely come in January, when Trump is inaugurated as president and investors look for the government to follow through on promised tax cuts, infrastructure spending and deregulation. Hopes for those policies have spurred both the large-cap and small-cap indexes to record highs in the last few weeks.

“On some level, investors are flying a little blind – We are in many cases speculating about the details,” said Ron Temple, co-head of multi asset and head of U.S. equity at Lazard Asset Management.

It’s “reasonable to expect a bit of a pause as people realize we do not know the details of the tax plan,” Temple said, adding that he is generally optimistic on the backdrop for stocks.

Republicans will have control of both chambers of Congress as Trump begins his presidency, raising hopes that his proposals will be enacted.

2. A loss of momentum

As stocks have unrelentingly pushed higher since the election, traders have pointed to support from positive momentum in one of the best months of the year for stocks. A concern would be if an event triggers a turnaround in sentiment, especially as confidence has climbed to multi-month highs.

“Confidence is very, very short lived – If something occurs in the next couple months, we could see confidence wane quickly,” said Lance Roberts, chief investment strategist at advisory firm Clarity Financial.

The University of Michigan’s consumer sentiment index leaped past expectations Friday to its highest since January 2015. Citi’s U.S. economic surprise index has also been on the rise since late October.

“I do believe President-elect Trump’s goal is to grow out the economy,” Temple said. “Unfortunately the approach of negotiating via Twitter is somewhat the opposite of that tactic … I do worry that governing by Twitter is problematic, a sub-optimal approach to governing and (inspiring) confidence.”

Since the election, Trump has used Twitter to attack companies such as Lockheed Martin and to take a tough line on U.S. relations with China.

3. A rising dollar

Following the election, the U.S. dollar index jumped to its highest in more than a decade, raising concerns for U.S. firms that sell products overseas.

An Alternative Energy Education Method

The best method of educating young people about alternative energy production that this writer has ever witnessed is the use of the PicoTurbine Company’s kits, books, and projects. The PicoTurbine Company produces these things for the purpose of advancing the cause of renewable (alternative) energy and getting young people to look into the future and see that the environment that’s being seeded now is the one they will inherit then. As the late, great Gerry Ford said, “Things are more like they are now than they have ever been before.” If we are to change the future world for the better, then it starts right here and now with the advent of “green” energy systems.

One of the core concepts of PicoTurbine can be stated: Tell me, and I will forget. Show me, and I might remember some of it. Involve me, and I will master it. Based on this old tried and true adage, the kits that the company produces come with activity suggestions to get the young people into hands-on learning situations. One suggestion of the company is to demonstrate how heat can be produced by wind energy (the company’s specialty) through using a “picture wire” for the heating element. PicoTurbine has found that people typically think of wind energy as being “cold” energy, and are pleasantly surprised to see how wind can be used for generating heat in the home. Another project suggestion that the company offers is to have different groups split off in the classroom and then compare their respective wind turbines that they have built. They can see which ones produce the most or least electricity; which ones start up with need of the least amount of wind power; and for very young children, which ones have the most aesthetic appeal.

There is a core curriculum that PicoTurbine has in mind for teachers to instill in their pupils. Renewable, alternative sources of energy include solar, hydroelectric, geothermal, and biomass in addition to wind-produced energy. When we use more alternative sources of energy, we decrease our nation’s dependence on foreign oil supplies, which often come from nations who cannot really be called our “allies”. Alternative energy is already becoming cost effective when set against the fossil fuels that we are so reliant on currently.

PicoTurbine points out that wind farms and solar arrays are already letting their makers enjoy commercial success. In the last two decades, the cost of photovoltaic cells expressed in terms of per-watt has gone from nearly $1000 to just $4! It has been predicted by analysts that by the year 2015, the cost per watt should only be about $1 (in today’s dollars). Students also need to be taught about the hidden cost of fossil fuels: pollution and environmental degradation. Air pollution from burning fossil fuels has been shown through studies to increase incidences of asthma attacks, heighten the effects of allergies, and even cause cancer. Switching over to clean, green energy found in the alternative forms would prevent air pollution and help bolster the environment.

Advertising on Television

Advertisements of products, organizations, and services are generally aired on television. This is be done by buying slots on the airtime from a particular television channel. Price depends on the popularity of the channel, time the commercial is being aired, number of viewers and length of the commercial. Placing a commercial on local channels is more affordable than on national channel where the cost is almost double.

When thinking of placing a commercial on television it is advised that you first understand what audience needs to be reached. Different audiences have different taste, which can be determined by their choice of television show like celebrity talk, cartoons, sports, reality, news, movies, soaps, prime time etc. Prime time is usually from 6 to 7 pm and is the most expensive slot. Following it is the news time at noon or 10-11 pm slots, which are proven to be the most effective time slots for the success of a commercial. More affordable is the 12-4 pm soap time. Always check out with the sales representative for the prices. When advertising on national level, check out an ad agency that usually works on commission basis. It’s highly recommended to negotiate during a re-run of the advertisement and stay away from paying the complete amount.

Compare the prices of different networks and different programs before you place an ad. Another money saving trick is to buy a thirty seconds slot and air commercials of ten to fifteen seconds of length one after the other. This increases the possibility of target viewers seeing the commercial without the cost of re-runs. But this is risky as the pressure of conveying critical information in a short period of time increases. So the commercials should not be so short that the actual message couldn’t be delivered correctly to the audience. Usually a reminder commercial can be of a shorter duration.

Look out for the people who would like to buy a slot that has already been purchased. This can be very tricky as it will be more like a bid for which they will be ready to pay a larger amount sometimes even double because they badly need a slot. This usually happens during the holiday season, which comes in the last quarter of the year around New Years Eve, Thanksgiving holidays and Christmas holidays. Best time of the year to buy slots for commercial is the first and second quarter of the year. Price is usually negotiable during the first quarter as the sales representatives give discounts to advertisers who have spend a lot of money advertising during the holiday season and are trying to recover from it.

If planning to pay for advertising commercials for the whole year check out the discounts that are being offered for advertising round the year. Usually a five percent discount is offered when signing for a six-month time period and ten percent when signing for a twelve-month time period. But do keep in mind to check out exactly when the commercials are being aired because these discounts are usually offered to distract people from this point and the commercials are aired during odd hours and also not during the holiday season.

The very first commercial to go on air was of Bulova Watch Company on WNBC, United States of America on July 1, 1941. And ever since then there have been no stopping and now commercials sell anything that one can ever imagine.

Email Marketing Mistakes

Many business owners who opt to try email marketing make the mistake of believing any type of email marketing is beneficial. This is simply not true; there are a number of mistakes business owners can make when they organize an email marketing campaign. Examples of these types of mistakes may include allowing promotional materials to be tagged as spam, not following up with promotional emails, not being prepared for an influx of customers after an email marketing effort and not marketing specifically to the target audience.

We will begin our discussion on email marketing mistakes with spam. Spam is a problem which is reaching endemic proportions. Each day Internet users are bombarded with spam from around the world. This may include a host of unsolicited emails which are promoting products or services the recipients may or may not be interested in purchasing. A critical mistake business owners can make in email marketing is to issue emails which are likely to be construed to be spam. This may result in the emails never reaching the recipient or the emails being deleted, without being read, by the recipient. Avoiding the potential of falling into the spam category is not very difficult. It basically involves ensuring your promotional emails contain more useful copy than blatant advertising. This will make it more likely for your emails to be taken seriously.

Another email marketing mistake often made is failure to follow up on promotional emails. Sending out emails to interested parties can be very beneficial but it is even more beneficial to contact these email recipients by other methods such as mail or telephone to answer any questions they may have and offer any additional information they may require. This type of follow up can be much more effective than simply sending an email and allowing it to fall into the abyss of an overcrowded email inbox.

Business owners may also run into the mistake of not preparing themselves for an influx of customers after an email marketing effort. The express purpose of email marketing is to generate increased interest in your products or services. Therefore it is critical for business owners to anticipate an increase in business and be prepared to accommodate this increased demand for products and services. This is important because potential customers who have to wait for products or services may seek out your competitors who are better prepared to provide them with products or services immediately.

Finally a critical mistake made by business owners is to not tailor an email marketing campaign to their specific target audience. This can be a problem because it may result in the email marketing being less effective. Business owners typically make this mistake because they fall into the trap of believing that it is more important to reach a large audience than it is to reach a target audience. You may blindly send your email marketing materials to millions of recipients and only generate a few leads. However, you could send the same email marketing materials to a smaller group of only a thousand recipients who all have an interest in your products and services and will likely generate more leads from this smaller email distribution list. It is not only important to send your message to members of your target audience but to also tailor your message to suit this audience. Creating an email message which will appeal to a variety of individuals is not as important as creating a message which will appeal to members of your target audience.

Alternative Energy Development in Japan

Japan is a densely populated country, and that makes the Japanese market more difficult compared with other markets. If we utilize the possibilities of near-shore installations or even offshore installations in the future, that will give us the possibility of continued use of wind energy. If we go offshore, it’s more expensive because the construction of foundations is expensive. But often the wind is stronger offshore, and that can offset the higher costs. We’re getting more and more competitive with our equipment. The price—if you measure it per kilowatt-hour produced—is going lower, due to the fact that turbines are getting more efficient. So we’re creating increased interest in wind energy. If you compare it to other renewable energy sources, wind is by far the most competitive today. If we’re able to utilize sites close to the sea or at sea with good wind machines, then the price per kilowatt-hour is competitive against other sources of energy, go the words of Svend Sigaard, who happens to be president and CEO of the world’s largest wind turbine maker, Vestas wind systems out of Denmark. Vestas is heavily involved in investments of capital into helping Japan expand its wind turbine power generating capacity. It is seeking to get offshore installations put into place in a nation that it says is ready for the fruits of investment into alternative energy research and development.

The Japanese know that they cannot become subservient to the energy supply dictates of foreign nations—World War II taught them that, as the US decimated their oil supply lines and crippled their military machine. They need to produce energy of their own, and they being an isolated island nation with few natural resources that are conducive to energy production as it is defined now are very open to foreign investment and foreign development as well as the prospect of technological innovation that can make them independent. Allowing corporations such as Vestas to get the nation running on more wind-produced energy is a step in the right direction for the Japanese people.

The production of energy through what is known as microhydoelectric power plants has also been catching on in Japan. Japan has a myriad rivers and mountain streams, and these are ideally suited places for the putting up of microhydroelectric power plants, which are defined by the New Energy and Industrial Technology Development Organization as power plants run by water which have a maximum output of 100 kilowatts or less. By comparison, “minihydroelectric” power plants can put out up to 1000 kilowatts of electrical energy.

In Japan, the small-scaled mini- and micro-hydroelectric power plants have been regarded for a considerable time as being suitable for creating electricity in mountainous regions, but they have through refinement come to be regarded as excellent for Japanese cities as well. Kawasaki City Waterworks, Japan Natural Energy Company, and Tokyo Electric Power Company have all been involved in the development of small-scale hydroelectric power plants within Japanese cities.

Alternative Energy in Ireland

The Irish are currently pursuing energy independence and the further development of their robust economy through the implementation of research and development into alternative energy sources. At the time of this writing, nearly 90% of Ireland’s energy needs are met through importation—the highest level of foreign product dependence in the nation’s entire history. This is a very precarious situation to be in, and the need for developing alternative energy sources in Ireland is sharply perceived. Ireland also seeks to conserve and rejuvenate its naturally beautiful environment and to clean up its atmosphere through the implementation of alternative energy supplies. The European Union has mandated a reduction in sulphuric and nitric oxide emissions for all member nations. Green energy is needed to meet these objectives. Hydroelectric power has been utilized in Ireland in some areas since the 1930s and has been very effective; however, more of it needs to be installed. Ireland also needs to harness the wave power of the Atlantic Ocean, which on its west coast is a potential energy supply that the nation has in great store.

Ireland actually has the potential to become an energy exporter, rather than a nation so heavily dependent on energy importation. This energy potential resides in Ireland’s substantial wind, ocean wave, and biomass-producing alternative energy potentials. Ireland could become a supplier of ocean wave-produced electricity and biomass-fueled energy to continental Europe and, as they say, “make a killing”. At the present time, Ireland is most closely focused on reaching the point where it can produce 15% of the nation’s electricity through wind farms, which the government has set as a national objective to be reached by 2010. But universities, research institutes, and government personnel in Ireland have been saying that the development of ocean wave energy technology would be a true driving force for the nation’s economy and one which would greatly help to make Ireland energy independent. A test site for developing wave ocean energy has been established in Ireland, less than two miles off the coast of An Spideal in County Galway Bay. This experimental ocean wave harnessing site is known as “Wavebob”. The most energetic waves in the world are located off the West coast of Ireland, says Ireland’s Marine Institute CEO Dr. Peter Heffernan. The technology to harness the power of the ocean is only just emerging and Ireland has the chance to become a market leader in this sector. David Taylor, CEO of the Sustainable Energy Initiative,or SEI, tells us that SEI is committed to innovation in the renewable energy sector. Wave energy is a promising new renewable energy resource which could one day make a significant contribution to Ireland’s electricity generation mix thereby further reducing our reliance on fossil fuels.

Padraig Walshe, the president of the Irish Farmers Association, tells us that with the closure of the sugar beet industry, an increasing amount of Irish land resources will become available for alternative uses, including bioenergy production. Today, renewable energy sources meet only 2% of Ireland’s total energy consumption. From a farming perspective, growing energy crops will only have a viable future if they provide an economic return on investment and labour, and if the prospect of this return is secure into the future. Currently the return from energy crops is marginal and is hampering the development of the industry. Biomass energies need to be further researched by Ireland.