John-Paul's Blog

As some of you know, I trade the opening half-hour of the stock market.  So I wanted to share some of my thoughts the DOW and my very own stock, Toll Bros (TOL).

The Dow ($DJI): As the Dow is so called reaching new highs, I like to perform simple tests to find out how well it is really doing.  This time, I will compare it to real money, not fiat money.  So if we compare the Dow to gold, the Dow has actually crashed 50%+!  So the “moral” of the story is to compare stocks to real money, not an inflationary index.

Toll Brothers (TOL): I have made lot of money, fairly quickly because TOL is sinking like a rock.  This is a perfect time for traders, because there is less risk in going short that there is going long for the simple fact that fear (market panic!!) is a stronger emotion that greed.  So the stock will drop faster quicker than it will go up.  So I do not anticipate an increase in price for the stock TOL. But that doesn’t mean you can’t make good money!

About a week ago, I had lunch with someone I admire very much. She gave me my first education in stocks, via her own proprietary method, when I was TEN! Ms. Kim Snider of the Snider Investment Method has created a way to cashflow stocks. ( www.kimsnider.com )

She shared some brilliant tips with me on things, not just regarding stocks, but how to pursue a goal, live authentically and run a business.

1. Make Your Ideas Always Yours: Always, always keep your Intellectual Property. Never give up rights to or control of your thoughts, ideas, or writings. Who are you?

2. Getting to the Top: Always set a measurable goal and make sure that you are focused on that specific goal.  Never forget, that you do not have to stick rigidly to your plan.  In the words of Ms. Snider, “When a mountain climber goes to climb a mountain, he makes a plan on how he will get to the top.  But if there is a ledge that he didn’t anticipate, he sometimes has to reinvent his way to the top on the path up there.” What is your mountain top?

3. Invest in Your Future Self: Remember that you cannot do it alone.  As Les Brown said, “Even the Lone Ranger had Tonto and Silver!”  I do speak publicly.  So Ms. Snider kindly invited me to attend the Dallas chapter of the NSA (National Speakers Association) so that I can get professional tips on how to improve my skills.  I am investing in myself and my future self. Are you investing in yourself?

Now that’s a POWER lunch! I certainly walked away FULL. 

Our currency is called “Fiat Money” which means that as a paper currency it in of itself is worth “no thing”. When money was backed by gold or silver, you could trade your cash dollars in for actual gold or silver. America went off the gold standard in 1933 and the silver standard in 1972. Now the dollar is “faith” based and not silver or gold based. 

How apropos that the dollar says, “In God We Trust.  

Mr. Alan Greenspan (whom I would love to meet someday soon) has voiced a growing concern about an income gap between the rich and the poor that could threaten the stability of our capitalist democratic society. Countries with thriving economies have a substantial middle class. One of the economic factors that points to economic instability is the collapse or decrease of the size of the middle class. The gap between the rich and poor in America is increasing and looks to continue to increase with housing sector instability.

With over a billion dollars of home foreclosures projected over the next 3-5 years, interesting times are ahead. Times that will certainly underscore my belief and conviction that the little people of our nation need to be prepared financially to face the challenges that lie on the horizon of their future.

I just met an AWESOME mortgage broker at a Rich Dad Seminar. His name is Mr. David Murphy. He has built-up several multi-million dollar businesses in his lifetime (he’s still really young!) and he understands the real estate industry from the ground floor up. Life as an investor is much easier if your mortgage broker talks the language of a business owner and investor, because they can get you the correct mortgage for your situation. If you do not have a banker/mortgage lender, title company, hard money lender, small land development person, or wholesaler on your team, I strongly recommend that you contact him at david@allegiance-mortgage.com, or call him at 469.574.1118 X 105. He can get pretty busy, but tell him, I told you to call.

www.allegiance-mortgage.com,
www.metroplexrealtysource.com,
www.global-equity.net,
www.BIGBOYSteel.com, - A Green Home Building subcontractor - building houses with steel framing from recycled junk cars instead of wooden stud from trees.

Being poor can simply be a lack of knowledge. When being poor is due simply to a lack of education than poverty can be overcome. But when being poor is a refusal to think or do anything different, than the poverty of the pocketbook is linked to a poverty of character.  I do not believe we need to be ashamed of what we do not know. We just need to acknowledge what we don’t know and begin to take steps toward understanding. The great thing about being a little person is that you don’t have to know, you just have to want to learn and try.

I am a person of Christian faith. And I remember distinctly at the age of five personally giving to Jesus the whole of my life. It was then at age seven that I ‘mistakenly’ picked up my first book on finance.  As I grow in my understandings of myself, my life and the world we live in, I gain a greater appreciation for my faith.

One of my favorite stories of faith is found in the parables. The Prodigal Son had left claiming, “Give me.” He returned begging, “Make me”.  I see in the story of the prodigal son a warning regarding an attitude of entitlement that bankrupts our financial and spiritual lives. The heart of entitlement is, “You owe me”; a bankrupted belief in our self and our capabilities and a judgment on the value and purpose of our relationships. Financial trials or life circumstances tempt toward an attitude of entitlement. Why should bad things happen to good people, God or even life “owes” us?  The prodigal son left the Father saying, “Give me.” He returned begging, “Make me”.

I wonder from faith’s perspective what God will “make” of my life. Do you wonder?