What's the Longest River in Emerging Markets?

"de-Nile". This is a quote from a recent piece in the Washington Post on banking and the emerging market economies. It provides a good perspective on how financial markets can be manipulated by few, to the detriment of many. While there are precedents to the current economic crisis that we can analyze and learn from, the situation is much like a strain of flu that "mutates" into a stronger more virulent form, and becomes resistant to drugs created to combat it. These are truly uncharted waters, and many outcomes are possible.

For Women of Wealth, what is most important is to be aware of the "macro" economic perspective, and use this to create up a "micro" or tactical approach to financial planning and build toward a positive outcome. The ultimate goal is to provide financial independence by which you can live out your social biography, and create a better world - for your children, your parents, and yourself.

There will continue to be pockets of opportunity amid the current crisis to invest into Emerging Markets. This has traditionally been the areas of highest growth. Once we get past the current set of issues with the world banking system, these markets with continue to grow. What we need to prepare for, is the strong possibility that the US may experience a prolonged period (a decade?) of stagnant growth, much like Japan in the 1980's. With a well conceived social biography and underlying financial plan, you can get past the present and into a bright and prosperous future!

Until next post, continue to believe, achieve, receive. SDG - JBHIV

The Road Ahead

My apologies to those of you who faithfully follow my daily blog. I took a few days off before the beginning of the new quarter to get together a plan for the next. I mentioned in an earlier blog that I believe the next few months (read quarter) are going to show us whether the economic policies of both the past and current administrations will be effective at getting our world economy back on track, or worsen an already bad situation.

This piece by a noted economist Alan Abelson in this weeks' Barron's is a must read. If what is proposed as part of a Private-Public partnership is successful at removing so called "toxic assets" from bank balance sheets, what happens next? Allegedly, this action will free up credit to new borrowers. But the number of credit-worthy individuals or companies is dwindling due to depressed spending and massive layoffs. Setting aside these "bad bets" and pretending they don't exist is just not part of the solution. The same thing can be said of the GM scenario. Now the strategy is to have an "orderly breakup" of the company by putting all the "good" assets together, and the "bad" assets into another pile, including employee pensions.

We have come to a crossroads in our history, which began as a journey in the last century with the creation on the fractional reserve banking system. We have had several debt related shocks to the system over the last 75 years, but none as potentially damaging as the creation of "financially engineered" product such as the ones AIG sold, and supposedly prudent banks, bought.

As Women of Wealth, you need to be more involved in understanding the financial capacity at your disposal. Many of you have this information kept for you through the activity and control of a spouse or trustee. You MUST get enlightened, before you are shocked by what may occur in your future. This is why I blog. And this is why I set up womenlighte.ning.com. Please use these to put yourself back in control. We are here to help you as individuals, and as a community.

Please consider signing up on our mailing list and in your comments, ask for an invitation to join the WWRG social network.

Until next post, continue to believe, achieve, receive. SDG - JBH

Womens Funding Network

Many of you have acquired wealth or aspire to, by creating value in an enterprise as a business owner, or executive, or elite professional. Some statistics from the US Department of Labor bear mentioning so that you get some perspective on just how far Women have come in their pursuit of Financial Independence:

• Women account for over 48 percent of the wealth in the US
  
• Almost half of all medical students are Women;
• Over 35 percent of all MBA students are Women:
• Nearly 48 percent of all law school students are Women
• The number of women-owned businesses has grown at twice the national average in the last two years:
• The US Senate has 16 Women, and The House has 71 Women:
• Women hold executive-level positions in 49 out of 50 state governments

The recent financial crisis has seen a slowdown in funding for small business, as well as large corporations, however there are resources available for women who are seeking funding and support. One of these that also has a socially responsible mission is the Womens Funding Network. Their upcoming conference at the end of April will bring together leaders from women’s funds and beyond to share innovative strategies for raising and managing resources, articulating impact and achieving lasting social return.

Whether you have been successful at running your own business, or a large corporation, make sure your personal Financial Goals fit into a broader Social Biography. Women are rising fast as leaders in Government and Corporate America. It has been an uphill battle, and there is still work to be done. Support each other in the fight. Change is coming - and now you have the statistics to prove it.

Until next post, continue to believe,achieve, receive. SDG - JBHIV

F.E.A.R. or F.A.C.T

I heard a statistic on an AM news program this morning that on it's surface, is quite disturbing. The number quoted was 345. No, I am not speaking of the millions paid out in the AIG bonus controversy. This is allegedly the number of known conflicts (on-going wars, border skirmishes, standoffs, etc) that are being tracked. Coincidentally, this is the same number used by Sweet Briar College to designate their Govt 345 course titled " International Conflict Resolution". It is also the number of times the papers of Prof. Allan Stam, Dartmouth, have been sited in scholarly discussions of Armed Conflict..

When I first heard the news report this morning, my first reaction was one of fear. Not "stop in your tracks" paralyzing fear, but "pause for threat assessment" fear. Then I snapped to my senses. I realized that this is just another instance of False Evidence Appearing Real. How can anyone really track ALL the worlds conflicts with any degree of accuracy. And just as the media has created a false sense of how bad our current financial crisis is, citing statistics that boggle the mind and seem to change almost daily, taking too much stock in them just creates further Fear, Uncertainty, & Doubt (FUD).

I'd rather see more of the behaviour I have seen Women of Wealth, and indeed, Women in general exhibit during tough times - Females Act Courageously Too. Over the next few weeks, I will dedicate my Wednesday post to female "profiles in courage". I hope it will serve as inspiration to the many of you who still believe that they are "the weaker vessel". The creation of Financial Independence coupled with a strong Moral Compass can create a Social Biography very much like the Women I will profile.

Take time today to think about how YOU react to F.E.A.R, and choose F.A.C.T-based living, instead.

Until next post, continue to Believe, Achieve, Receive. SDG- JBHIV

Should a sudden drop...

...in cabin pressure occur...an oxygen mask will drop... put your mask on first, then put them on small children. Those of you who travel via aircraft are familiar with this directive, mandated by the FAA as part of the pre-flight checklist that the crew has been trained to deliver. This is but one of several directives (warnings) we are given, all of them designed to prepare us for an in-flight emergency. Most seasoned air travelers, like myself, tend to tune out during this monologue. We hear these words so often that they lose their meaning, or we think the chances of something happening are so remote, we may no longer pay attention.

In the case of the air mask, something struck me recently as I began to think about the current financial crisis and how I have responded. For one, it seemed to me that is selfish to think of placing a mask on me first, then my children. After all, aren't we taught (and innately feel) that we should put the needs of our children first in these situations? The other thing that came to mind was how much I had been "tuning-out" during the last 12 months, despite all the warning signs that things were about to get ugly.

A few observations from this analogy that keep me positively focused during this unsettling period:

• Yes, there is an emergency, but yes, I have been prepared for this eventuality, and have a plan to deal with it.
  
• There is help available, the oxygen mask if you will, which has been given to me to use if needed.
• I must first ensure that I have pure oxygen flowing to me, before I help others with their need. It is essential that I be strong and available to help those unable to help themselves.

Do you have an action plan in place to deal with an ever-deepening crisis? Are you able to take care of your needs, so that you can take care of the needs of your children? If the answer to this question is no, then I ask you to take time TODAY, to listen again to the instructions of others who are willing to help you. Trust your intuition, not the people around you who have gotten us into this mess. They didn't have your best interests or the interests of your children in mind.

Yes, the flight attendant's drone will go on, but this time pay attention.

Until next post, continue to believe, achieve, receive. SDG -JBHIV

A Tale of Two Soccer Moms

We are in the middle of the biggest snow storm of the season, and once again, school has been canceled. While children delight, working moms experience fright. "How am I going to get to that important meeting with _____ (fill in the blank)? Who is going to care for my kids?" One of the results of setting up your life plan and social biography, followed by a closely-coupled financial and retirement plan, is freedom. Freedom to spend time with your family during times when it is most critical. To have balance in your life even if you want it all.

I have had the good fortune to know two local Women that have been able to make such choices. I met both of them on the soccer field. I had no clue that both were powerhouses in their respective careers until much later - when they were "off-the-clock", they were totally "standing down" from their corporate lives.

One of them Brenda Barnes, was an executive at Pepsico at the time. She and husband Randy both held senior positions. Often they would arrive for weekend games having just landed in the corporate jet from a meeting. One day, Randy appeared at school to pick up his children after school. He was dressed casually, and looked relaxed. This was unusual, as their nanny typically handled these duties. He told me then that he and Brenda had decided to leave Pepsico and return to Illinois. They would both do some corporate board work, but spend more time as a family. As Brenda later said during an interview, "I made my decision not because my children needed more of me. I needed more of them". Now Brenda is back at number 6 on the Fortune Top 50 Women in Business list. I'm sure her four children are benefactors in her social biography, which she had the foresight to craft for success - family, career, life.

Another "Power Mom" is Jacki Zehner. I have her blog, Purse Pundit, in my recommended resources list. She and her husband, Greg, were soccer coaches in our local rec program when I met them. I had no idea that she and Greg were both partners at Goldman Sachs - she the youngest invited to join the partnership. They have since left their positions to focus on family and faith. Jacki has become a frequent media commentator, and recently appeared on CNN's Morning Show. Both are building a social biography that includes philanthropy and service to others.

Take today's snow event to think about your social biography. Spend time with your children. You'll be glad you did.

Until next post, continue to believe, achieve, receive. SDG - JBHIV

What ifs: a crucial step in the financial healing process

A few days ago, I posted a list of ten things that Women of Wealth can do today to gain more control, and better assess the impact the current financial crisis may have on their social biography and underlying financial goals.
One of the biggest hurdles to the success of any economic recovery plan is the fear of "what ifs" - what if I or my spouse loses their income, what if the trust fund I rely on is now not able cover my needs, etc.
Losing wealth may be difficult to deal with for those who did not see the financial storm brewing a year ago, or who relied on others to manage their wealth but never kept a close eye on their statements.
Here are few suggestions from Dr Theodore Soutzos, a consultant psychiatrist in London, on how the process of "financial healing" can begin*:

"Treating the fear around the loss of money is a three-step process. First is cause, Dr Soutzos says: “You have lost money. Can you do something to keep it?” Next comes perception: “Often people will exaggerate the extent of the damage.”

Finally comes response: “When you’re actively doing something about it, you feel less stressed,” he says. “If people say ‘I will end up on the street’, I challenge them.” In some instances, losing wealth can offer an escape route. It can allow you to pursue another career, move home or shed a partner. Dr Wolman says: “Getting off the treadmill can bring enormous relief. You’re always losing something. There’s always someone out there with a bigger house and a bigger boat.”

After financial pain comes financial healing, though this cannot happen without the willingness to accept the situation (blame and denial are two forms of escapism).

A realistic breakdown of all assets left is the first priority after which it comes down to support structures. “Anxieties go down as soon as you process them,” says Dr Wolman. And this means talking about them.

Until next post, continue to believe, achieve, receive. SDG - JBHIV

*This first appeared in the February print edition of Wealth Bulletin as part of Wall Street Journal Europe.

Your First Step Forward

As you begin to build your social biography, I suggest you take time to meditate on what is truly important to you, a Woman of Wealth. For many, the answer is clear. For others, your importance has been overshadowed by the control of others - a spouse, parent or child. Perhaps your circumstances have recently changed. The wealth that was previously under the control of others has suddenly been placed in your care.

With this new capacity comes an opportunity to match it with your Moral Compass - an array of purposes, aspirations, and long-term goals to which you devote this capacity. As a wealth holder you have the capacity, the power, to shape the lives of others. Your wealth makes you a "world-builder". And with that comes tremendous responsibility, because that capacity has the potential to have a very positive effect, or a profoundly negative one. The greater the capacity, the more attention needs to be placed on how to use these resources wisely.

As a first step, you must clarify what in terms of financial, intellectual, and spiritual resources you have to put into play. This process of discernment, from a financial perspective, is all about figuring out how financially secure you are. So, at the most basic level, you are figuring out your resource stream both now and in the future, as well as the income stream you desire for yourself and your children. It sounds intuitive, but many women don't have a clear, realistic picture of that - and until they do, they feel stagnant, insecure, and even fearful about what they could use their money for because they have never really clarified just how much they have and their intention for its future.

If what I have laid out for you in this post resonates with you, please let me know. In future posts I will build upon this foundation. Ultimately, this is a process that first brings a consciousness, an awareness, a clarity to what you have, and then, secondly, a consciousness as to what you want to do with it.

Until then, continue to believe, achieve, and receive. SDG - JBHIV