Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week: The US Banks: Carry Trade?
A comparison of the investment strategies amongst the major banks versus smaller clearly indicates a dichotomy in various lending models. The US Economy is still in a financial turbulence and it may take a number of years for certain sectors to recover as the banks are not lending due to various internal factors. Lack of liquidity in the marketplace has simply incapacitated the national economy and the tremors are felt throughout various different industries and sectors. The question most entrepreneurs are asking, can our savings and cash flow sustain our current operations and how long will uncertainty last?
The major US Banks are taking advantage of the very low interest rates, near zero and using to capitalize their investment and portfolios by purchase of stocks, bonds, other securities rather than lending those funds to the smaller banks. The marketplace is very sensitive to the data and press releases and can elicit in adjustments in the lending arena. The rules of lending have clearly changed and free market maybe a term that barely exists anymore. A number of smaller banks are tied up and restricted to so much that they can do as the new underwriting guidelines are more regulated.
Lack of lending into smaller communities will eventually lead to closing of number of businesses and add burden to the tax payers and create a domino effect resulting into closing of other businesses as well. Looking at the fundamental swell of the lending arena; there was relative little the banks can do which results into closing of many financial institutions and this may very well be a start. We have already seen a wave of residential default and just starting to see the commercial side.
My Thoughts: cut all your expenses and renegotiate with all the vendors and lenders. It is critical that the small businesses survive as they employ most of the citizens of this country. Diversify your risk by making sounds investments for the future, look far on a global scale. Think of new concepts and get creative to build your business.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Tuesday, November 10, 2009
Monday, October 5, 2009
Global Recession: A Paradigm Shift?
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Global Recession: A Paradigm Shift?”
As we see challenges in the global economies, we must also simulate new models not only to get us through the survival mode but also to make our organizations stronger and more powerful than ever before. However, the question we must ask ourselves as the executives of our comprehensive domain, can we handle the growth? Are we ready for the paradigm shift?
With or without you, this shift is happening across various industries and sectors and it has never been as aggressive in the past. Paradigm shift is contributing and making its presence appreciative in the organizational structure of many creative companies and bring worlds together and making them smaller. It is now that we must embrace and accept it by formulating new strategies for not only growth but sustaining current state.
This recession brings abundance of opportunities for any business regardless of industry they are in. If you are an entrepreneur and can’t seem to find that gold nugget, I say you are not looking hard enough. You need to look harder and find the opportunity within your industry. We simply have to position ourselves to be on the receiving side and not on the giving side.
In the next few years will encounter a number of changes in the business world and many times these changes will affect us as well, but we have to be the judge of whether that impacts us in a positive manner and not negative. This shift needs to be initiated in every organization from the frontend such as business development and sales to the backend like the financials, etc.
My Thoughts: Create positive synergies amongst your partners and related industries; don’t wait for them to happen! Be creative and think logically before making a commitment, especially long term commitment. Are we ready for the Paradigm Shift? Or should I ask are you ready for the Shift?
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
As we see challenges in the global economies, we must also simulate new models not only to get us through the survival mode but also to make our organizations stronger and more powerful than ever before. However, the question we must ask ourselves as the executives of our comprehensive domain, can we handle the growth? Are we ready for the paradigm shift?
With or without you, this shift is happening across various industries and sectors and it has never been as aggressive in the past. Paradigm shift is contributing and making its presence appreciative in the organizational structure of many creative companies and bring worlds together and making them smaller. It is now that we must embrace and accept it by formulating new strategies for not only growth but sustaining current state.
This recession brings abundance of opportunities for any business regardless of industry they are in. If you are an entrepreneur and can’t seem to find that gold nugget, I say you are not looking hard enough. You need to look harder and find the opportunity within your industry. We simply have to position ourselves to be on the receiving side and not on the giving side.
In the next few years will encounter a number of changes in the business world and many times these changes will affect us as well, but we have to be the judge of whether that impacts us in a positive manner and not negative. This shift needs to be initiated in every organization from the frontend such as business development and sales to the backend like the financials, etc.
My Thoughts: Create positive synergies amongst your partners and related industries; don’t wait for them to happen! Be creative and think logically before making a commitment, especially long term commitment. Are we ready for the Paradigm Shift? Or should I ask are you ready for the Shift?
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Tuesday, September 22, 2009
US Recession: Do we have a Lifeline?
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “US Recession: Do we have a Lifeline?”
Americans have always been in the front lines battling and fighting other economies’ challenges by providing loan assistant programs to foreign aid to even outsourcing of American jobs. Well, outsourcing jobs can be also looked at as adding to the American corporation bottom line, but at the end of the day, we contributed heavily in providing assistance in times of need. Are we going to see that gesture reciprocated from these countries? Obviously, I am not asking for them to contribute on the monetary aspect but rather on the trade side.
I don’t expect the developing countries with limited resources to play a role in this arena but countries like China and India where the economies are not necessarily parallel with the US Economy but rather diverse in some aspects. I remember when India had so many graduates like doctors and engineers on the streets polishing shoes and running some business to barely put food on the table. Today, a number of American jobs have been outsourced to Indians from IT, Engineering to even medical field. These countries are not only taking over US jobs but also sending their professionals over to the US to create their presence here as well.
It is time we re-think all the foreign trade agreements before one of these countries surpasses our economy and puts us in the backseat. This battle can very well be a one man battle but collectively we form parallel agreement and have similar mindset to tackle this issue. If we continue on the current path, I am sorry to say but it is a path to devastation. We are already seeing failures at all levels of organizations including the government. We need to adapt to new ways of thinking and also revisit our old traditions and heritage.
The US Government is running out of money and if they are not careful we will be headed to another recession even before we come out of this one. There is no country out there that is going to keep lending us money at such a low rate whereas they can invest the same money in other countries and get a return of 500%, granted it is a risky investment but the returns are stunning. As citizens of this amazing nation, we need to take it upon ourselves to create lifelines in our everyday dealings and find creative ways to generate growth. If you are a small company operating from a remote location, go online and explore options to export your merchandise on the global market. If you are a consultant seeking a job in the US, think again and look for opportunities abroad. If you are an intern seeking a job, go work at a firm for free even if you have to go fetch coffee all day. Be productive, think outside of the box!
My Thoughts: The only Lifeline America has is its people and freedom to practice Capitalism. If you have fear of failing then you have already failed. Do not fear and go for it. Even if you fail, so what get up and try again and again till you reach your goals. I will not wish you luck, because you don’t need it, you have the spirit of capitalism and entrepreneurship in you, so go out there and “Make it Happen.”
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Americans have always been in the front lines battling and fighting other economies’ challenges by providing loan assistant programs to foreign aid to even outsourcing of American jobs. Well, outsourcing jobs can be also looked at as adding to the American corporation bottom line, but at the end of the day, we contributed heavily in providing assistance in times of need. Are we going to see that gesture reciprocated from these countries? Obviously, I am not asking for them to contribute on the monetary aspect but rather on the trade side.
I don’t expect the developing countries with limited resources to play a role in this arena but countries like China and India where the economies are not necessarily parallel with the US Economy but rather diverse in some aspects. I remember when India had so many graduates like doctors and engineers on the streets polishing shoes and running some business to barely put food on the table. Today, a number of American jobs have been outsourced to Indians from IT, Engineering to even medical field. These countries are not only taking over US jobs but also sending their professionals over to the US to create their presence here as well.
It is time we re-think all the foreign trade agreements before one of these countries surpasses our economy and puts us in the backseat. This battle can very well be a one man battle but collectively we form parallel agreement and have similar mindset to tackle this issue. If we continue on the current path, I am sorry to say but it is a path to devastation. We are already seeing failures at all levels of organizations including the government. We need to adapt to new ways of thinking and also revisit our old traditions and heritage.
The US Government is running out of money and if they are not careful we will be headed to another recession even before we come out of this one. There is no country out there that is going to keep lending us money at such a low rate whereas they can invest the same money in other countries and get a return of 500%, granted it is a risky investment but the returns are stunning. As citizens of this amazing nation, we need to take it upon ourselves to create lifelines in our everyday dealings and find creative ways to generate growth. If you are a small company operating from a remote location, go online and explore options to export your merchandise on the global market. If you are a consultant seeking a job in the US, think again and look for opportunities abroad. If you are an intern seeking a job, go work at a firm for free even if you have to go fetch coffee all day. Be productive, think outside of the box!
My Thoughts: The only Lifeline America has is its people and freedom to practice Capitalism. If you have fear of failing then you have already failed. Do not fear and go for it. Even if you fail, so what get up and try again and again till you reach your goals. I will not wish you luck, because you don’t need it, you have the spirit of capitalism and entrepreneurship in you, so go out there and “Make it Happen.”
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Monday, September 21, 2009
Entrepreneurs: US Dollar Analysis for your Business.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Entrepreneurs: US Dollar Analysis for your Business.”
Entrepreneurs, start your engines! The Goal is uncomplicated, make money during the recession. The US Government has two options to recoup the funds it has injected in the market, one being raising taxes which is very unlikely due to the state of the economy. Second, the most favored is inflating the US Dollar. Intelligence is a commodity in today’s market, which brings not only intangible value but also tangible and that is the very reason the term ‘insider’ is referred to at times.
Many times we have speculated and said ‘if I had only known.” Say for example, would you have bought Apple stock when it was trading for less than $5 dollars and at present at $184.00? My fellow entrepreneurs, you have access to that information at the current time, knowing that the US Dollar is going to be inflated and you need to capitalize on that whether it be investing in foreign currency or simply making wise decision in regards to future dealings.
One of the key obstacles many business owners will encounter is liquidity due to the banking regulations and lack of funds. Capitalizing on current state of economy does not necessarily require monetary resources but rather a right strategy with an impeccable conceptualization. What are you going to capitalize on? Your daily operations! They will need to be agile and flexible enough to wither the storm.
As a business owner you will need to factor in anticipated inflation or deflation in all the financial activities of the businesses as this is crucial to sustain not only your short term operations but also long term. You will need to convert your cash flow from constant to actual and apply appropriate formulas like use of discounting payment factors rather than compounding. Many businesses fail due to under capitalization but more so due to failing to understanding how critical it is to allocate appropriate resources for future use.
A simple way to understand this concept is to recall what a dollar used to buy over 10 years ago and what does it buy today. This concept of understanding inflation and devaluation of US Dollar is going to be one of the driving indicators of many businesses. This concept is more important than ever before especially for the manufacturing sector who exports their products since we are now dealing with foreign manufacturers who are exploiting on the fiasco caused by the US markets. So be very smart in your dealings.
My Thoughts: As an Entrepreneur, make sure to evaluate every revenue stream and apply appropriate inflation models on current and projected cash flows as well as on the outstanding debt. This concept can also be employed by investors and it is just as important as your ROI. So be wise and run a lean organization with strong future projections!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Entrepreneurs, start your engines! The Goal is uncomplicated, make money during the recession. The US Government has two options to recoup the funds it has injected in the market, one being raising taxes which is very unlikely due to the state of the economy. Second, the most favored is inflating the US Dollar. Intelligence is a commodity in today’s market, which brings not only intangible value but also tangible and that is the very reason the term ‘insider’ is referred to at times.
Many times we have speculated and said ‘if I had only known.” Say for example, would you have bought Apple stock when it was trading for less than $5 dollars and at present at $184.00? My fellow entrepreneurs, you have access to that information at the current time, knowing that the US Dollar is going to be inflated and you need to capitalize on that whether it be investing in foreign currency or simply making wise decision in regards to future dealings.
One of the key obstacles many business owners will encounter is liquidity due to the banking regulations and lack of funds. Capitalizing on current state of economy does not necessarily require monetary resources but rather a right strategy with an impeccable conceptualization. What are you going to capitalize on? Your daily operations! They will need to be agile and flexible enough to wither the storm.
As a business owner you will need to factor in anticipated inflation or deflation in all the financial activities of the businesses as this is crucial to sustain not only your short term operations but also long term. You will need to convert your cash flow from constant to actual and apply appropriate formulas like use of discounting payment factors rather than compounding. Many businesses fail due to under capitalization but more so due to failing to understanding how critical it is to allocate appropriate resources for future use.
A simple way to understand this concept is to recall what a dollar used to buy over 10 years ago and what does it buy today. This concept of understanding inflation and devaluation of US Dollar is going to be one of the driving indicators of many businesses. This concept is more important than ever before especially for the manufacturing sector who exports their products since we are now dealing with foreign manufacturers who are exploiting on the fiasco caused by the US markets. So be very smart in your dealings.
My Thoughts: As an Entrepreneur, make sure to evaluate every revenue stream and apply appropriate inflation models on current and projected cash flows as well as on the outstanding debt. This concept can also be employed by investors and it is just as important as your ROI. So be wise and run a lean organization with strong future projections!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Saturday, September 19, 2009
Entrepreneurs: Think Strategically.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Entrepreneurs: Think Strategically.”
A Strategy is a plan of action that incorporates appropriate allocation of resources and other events to help the organization attain its goals. Strategies are formulated at all levels of the organization for various reasons such as ways to reciprocate to the competitors, confront with difficult external economic times, and to effectively use available resources. We have encountered within a number of organizations that we invest in, that strategic planning positively affects a firm’s performance and creates a financial success.
Before strategies are formulated, the executive members have to identify the core competences of the organization and a proper situation analysis needs to be formed. Situation analysis is important to every company but crucial to an organization that is going through financial turbulence. We are observing many entities that are facing challenges due to the current economy and we need to look deeper into our business models and re-evaluate our goals.
Most organizations fail when it comes to the implementation phase. They can form strategies that may or may not be valid but the implementation phase is very challenging and even a professional can fail if it is not executed accurately. Take for example major corporations that we see file for bankruptcy and most of these entities are governed by professionals, so why did they fail? When in bankruptcy, the professionals take over and revisit the strategies that were proposed and to conclude at what levels did they fail.
Strategy formulation may include assessing the external environmental such as the economy and internal challenges such as cash flow. As we are experiencing challenges, formulate new strategies and incorporate all current factors and potential future challenges as well. Project your thinking five or even ten years out and form solid plan that will carry your forward, but don’t forget to constantly visit them. A business without a proper plan or goal in mind cannot sustain its operations and will end up going under.
Don’t forget to Implement!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
A Strategy is a plan of action that incorporates appropriate allocation of resources and other events to help the organization attain its goals. Strategies are formulated at all levels of the organization for various reasons such as ways to reciprocate to the competitors, confront with difficult external economic times, and to effectively use available resources. We have encountered within a number of organizations that we invest in, that strategic planning positively affects a firm’s performance and creates a financial success.
Before strategies are formulated, the executive members have to identify the core competences of the organization and a proper situation analysis needs to be formed. Situation analysis is important to every company but crucial to an organization that is going through financial turbulence. We are observing many entities that are facing challenges due to the current economy and we need to look deeper into our business models and re-evaluate our goals.
Most organizations fail when it comes to the implementation phase. They can form strategies that may or may not be valid but the implementation phase is very challenging and even a professional can fail if it is not executed accurately. Take for example major corporations that we see file for bankruptcy and most of these entities are governed by professionals, so why did they fail? When in bankruptcy, the professionals take over and revisit the strategies that were proposed and to conclude at what levels did they fail.
Strategy formulation may include assessing the external environmental such as the economy and internal challenges such as cash flow. As we are experiencing challenges, formulate new strategies and incorporate all current factors and potential future challenges as well. Project your thinking five or even ten years out and form solid plan that will carry your forward, but don’t forget to constantly visit them. A business without a proper plan or goal in mind cannot sustain its operations and will end up going under.
Don’t forget to Implement!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Friday, September 18, 2009
Wealth Management: The Middle Class Millionaires of Today.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Wealth Management: The Middle Class Millionaires of Today.”
We have created a dynamic economic model and the changes are very rapid on a daily basis and there are constant updates on the technology side to keep the models even more complex, such as flash trading, etc. One of the integral parts of the system that is lacking intelligence is the financial advisors. I have spent over five years in the Venture Capital industry and have met a number of advisors and wealth manger. I would say only 5% of them have the right formula.
Wealth Management today is much different then what we saw a year ago when Lehman Brothers was still around. After the collapse of the giant, the world has changed drastically and it is still evolving and not necessarily recovering but finding new avenues to capitalize on. A number of middle class millionaires have seen their portfolio vanish away and left them with very little or no retirement funds. it may very well be in the best interest of these powerhouses to grow their clients portfolio but isn’t it also there job to forecast the storm? Many portfolios did not drop 80-90% in one day, rather over a period of few months. So why did these financial advisors fail to channel these investments into a safer product?
If these financial advisors are failing middle class millionaires and collecting 1-2% portfolio management fee, what good are they? Middle class millionaires have worked most of their lives to get to this point and then they meet a financial advisor and within a year’s time they transfer their whole portfolio into the hands of some rookie.
If you are seriously considering becoming a financial advisor, this is the right time. America will grow again very slowly and many of these industries and businesses will be backed by no other then the middle class millionaires. We are going to see the middle class slowly emerging again and in this disruptiveness, we have to seek opportunities and start all over again regardless of what your background is. The mindset of the old financial advisors needs to be re-engineered and new ideas need to be cultivated.
My Thoughts: We are going back to the fundamentals, show me the numbers. Relationship building is all good, but what good is it if you can’t deliver? So my dear financial advisors, I hope that you don’t get me as a client, because if you did, you better be prepared. In the meanwhile, do the best job you can and standout. Do your homework not necessarily on your client, but on the market and investment strategies. Pick up new ideas and creativity in your field and show us what you can do before we invest a penny!
Let’s Create More Millionaires!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
We have created a dynamic economic model and the changes are very rapid on a daily basis and there are constant updates on the technology side to keep the models even more complex, such as flash trading, etc. One of the integral parts of the system that is lacking intelligence is the financial advisors. I have spent over five years in the Venture Capital industry and have met a number of advisors and wealth manger. I would say only 5% of them have the right formula.
Wealth Management today is much different then what we saw a year ago when Lehman Brothers was still around. After the collapse of the giant, the world has changed drastically and it is still evolving and not necessarily recovering but finding new avenues to capitalize on. A number of middle class millionaires have seen their portfolio vanish away and left them with very little or no retirement funds. it may very well be in the best interest of these powerhouses to grow their clients portfolio but isn’t it also there job to forecast the storm? Many portfolios did not drop 80-90% in one day, rather over a period of few months. So why did these financial advisors fail to channel these investments into a safer product?
If these financial advisors are failing middle class millionaires and collecting 1-2% portfolio management fee, what good are they? Middle class millionaires have worked most of their lives to get to this point and then they meet a financial advisor and within a year’s time they transfer their whole portfolio into the hands of some rookie.
If you are seriously considering becoming a financial advisor, this is the right time. America will grow again very slowly and many of these industries and businesses will be backed by no other then the middle class millionaires. We are going to see the middle class slowly emerging again and in this disruptiveness, we have to seek opportunities and start all over again regardless of what your background is. The mindset of the old financial advisors needs to be re-engineered and new ideas need to be cultivated.
My Thoughts: We are going back to the fundamentals, show me the numbers. Relationship building is all good, but what good is it if you can’t deliver? So my dear financial advisors, I hope that you don’t get me as a client, because if you did, you better be prepared. In the meanwhile, do the best job you can and standout. Do your homework not necessarily on your client, but on the market and investment strategies. Pick up new ideas and creativity in your field and show us what you can do before we invest a penny!
Let’s Create More Millionaires!
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
Wednesday, September 16, 2009
Re-engineering Human decision making mind.
Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Re-engineering Human decision making mind.”
There is no apprehension how much a human mind can comprehend and generate constant flow of ideas and thoughts. However, just like anything on this earth, it has to be trained to a degree when it comes to making simple or complex decisions either involving everyday activities or forming future strategies. Human factors engineering is a science that plays a vital role in decision making for the minds of many individuals whether they are in a manufacturing plant or even stopped at a red light.
It is human nature to jump to conclusion often when the decision maker makes the wrong choice but we fail to place ourselves in that position to understand why was that decision made in the first place. Many times the external data and representation of scenarios makes us unsophisticated to make the right decision.
This concept of decision making can not only be utilized in the field of engineering, such as making of the traffic lights for example which feeds data to your mind whether to make a stop or to go in green. This can be employed in just about any industry and business. In today’s chaotic and volatile marketplace, human factors engineering is a key element for the entrepreneurs. We have been developing a number of models and principles in-house for the last few years to see how they perform in real world problems. The results were simple phenomenal.
As we enter into the new era of business, we have to equip ourselves with appropriate decision making skills and taking into consideration all the factors that play a role in that particular event by creating a merit analysis. It can be a very challenging model to create if you lack proper skills and intellect since merit analysis does assign a value on all the factors for final decision. The key is obtaining information that is authentic and does apply today; information that was valid yesterday cannot be used and is already outdated.
My Thoughts: Carefully analyze the market, regardless of whatever industry you are in, make a use of human factors engineering in your decision making skills. Remember, it may cost you a little more initially but at the end of the day you will end up with making the right decisions and higher revenues as well.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
There is no apprehension how much a human mind can comprehend and generate constant flow of ideas and thoughts. However, just like anything on this earth, it has to be trained to a degree when it comes to making simple or complex decisions either involving everyday activities or forming future strategies. Human factors engineering is a science that plays a vital role in decision making for the minds of many individuals whether they are in a manufacturing plant or even stopped at a red light.
It is human nature to jump to conclusion often when the decision maker makes the wrong choice but we fail to place ourselves in that position to understand why was that decision made in the first place. Many times the external data and representation of scenarios makes us unsophisticated to make the right decision.
This concept of decision making can not only be utilized in the field of engineering, such as making of the traffic lights for example which feeds data to your mind whether to make a stop or to go in green. This can be employed in just about any industry and business. In today’s chaotic and volatile marketplace, human factors engineering is a key element for the entrepreneurs. We have been developing a number of models and principles in-house for the last few years to see how they perform in real world problems. The results were simple phenomenal.
As we enter into the new era of business, we have to equip ourselves with appropriate decision making skills and taking into consideration all the factors that play a role in that particular event by creating a merit analysis. It can be a very challenging model to create if you lack proper skills and intellect since merit analysis does assign a value on all the factors for final decision. The key is obtaining information that is authentic and does apply today; information that was valid yesterday cannot be used and is already outdated.
My Thoughts: Carefully analyze the market, regardless of whatever industry you are in, make a use of human factors engineering in your decision making skills. Remember, it may cost you a little more initially but at the end of the day you will end up with making the right decisions and higher revenues as well.
Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com
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