2012
Jun 
5

This Week’s Peak Performance Coaching Report and Current Economic Outlook

Filed under: GENERAL — Kerry Johnson @ 4:38 pm  

A New Twist on Gaining More Appointments at Your Events
One of My Clients, Eric Peterson, used me to speak at a BANC event last Thursday in Des Moines, Iowa. At that meeting he was able to book 21 appointments, the most I have ever seen at a client event.

The secret it seems, was who he invited. Along with approximately 25 clients who brought a guests, Eric had the brilliance of also inviting prospects. These were people who had either been at a past seminar or seen Eric in his office but didn’t buy. This week as I have been speaking to my coaching clients, most tell me they have lists of several hundred prospects that fit this category. When my first book came out in 1985, the publisher at Simon & Schuster told me it would take three exposures to get someone to buy a book. It now takes seven. I really believe in the drip method, but I also think we need to be more proactive. Inviting past prospects to your BANC and Messina events seems to double the appointments. Talk to your coach about this concept this week. For the price of a few extra meals, you will be able to dramatically increase your appointments and sales.

Economic Update
The Eurozone
Equities followed up on a disappointing April with a troubled May, the worst month for the Dow Industrials in two years and one that pushed the Global Dow into negative territory for the year. As problems in Europe mounted, more investors sought security in sovereign debt that seemed to offer at least some refuge from the difficulties of Greece and Spain. That demand pushed the yield on 10-year U.S. Treasury bonds to 1.63%–the lowest level seen in decades–while short-term German debt was auctioned with a coupon rate of zero.

Concern about the euro’s stability pushed its value from $1.32 at the beginning of the month to under $1.25. As the dollar strengthened, oil prices plummeted to roughly $87 a barrel from nearly $105 at the end of April, and gold lost roughly 7% to end the month around $1,563 an ounce.

Market/Index 2011 Close-Prior Month-As of 5/31-Month-Change-YTD Change*
DJIA 12217.56 13213.63 12393.45 -6.21% 1.44%
Nasdaq 2605.15 3046.36 2827.34 -7.19% 8.53%
S&P 500 1257.60 1397.91 1310.33 -6.27% 4.19%
Russell 2000 740.92 816.87 761.82 -6.74% 2.82%
Global Dow 1801.60 1940.16 1742.87 -10.17% -3.26%
Fed. Funds .25% .25% .25% 0 bps 0 bps
10-year Treas 1.89% 1.95% 1.59% -36 bps -30 bps

Popular frustration with eurozone austerity programs began hitting home in Europe with Socialist François Hollande’s election as France’s president and the rise of anti-austerity political parties in Greece. After those parties failed to form a coalition government, new elections were scheduled for June 17 as concern mounted that an anti-austerity government might default or try to renegotiate the terms of Greece’s bailout. Eurozone leaders continued to insist they want to avoid a “Grexit” and some began raising the possibility of a jointly backed “eurobond.” However, the uncertainty plus currency flows out of the country’s banks led to increased worries about the impact of a default or exit on other countries.

As Spanish banks received another credit rating downgrade, the government in Madrid was hit with new bailout demands from Spain’s fourth-largest bank as well as one of its regional governments. Anxiety about the banks’ stability and the government’s resources to help them pushed the yield on the country’s benchmark 10-year bond from 5.8% to 6.6% over the course of the month.

Unemployment increased to 8.2%, according to the Bureau of Labor Statistics’ May report. The drop was largely the result of only 65,000 jobs created and more people leaving the workforce. The economy created only 115,000 new jobs the prior month; that’s substantially lower than the 154,000 jobs added the previous month or the 252,000 monthly average between December and February.

U.S. economic growth was even slower during the first quarter of 2012 than the Bureau of Economic Analysis’s 2.2% initial estimate. The revised gross domestic product figure was 1.9%, substantially lower than the previous quarter’s 3%. Consumer spending picked up 2.9% in Q1, but business spending was off.

Home sales statistics were more encouraging than in recent months. Fueled by record low mortgage rates–lender Freddie Mac said the rate for a 30-year fixed loan hit 3.75%–sales of both new and existing homes jumped more than 3.3% in April, according to the Commerce Department and the National Association of Realtors®.

Status changes: After one of the biggest tech IPOs on record, Facebook’s stock price took a nosedive, hurt by both a massive trading snafu the day of the offering and the Securities and Exchange Commission’s subsequent announcement that it would look into whether the offering’s underwriters warned key clients (but not the public) at the last minute about the company’s financial challenges. Meanwhile, J.P. Morgan Chase said trading in credit derivatives had cost the bank an estimated $2 billion or more, and Hewlett-Packard announced it would cut 27,000 jobs over the next two years to compete more effectively in a changing tech environment.

Manufacturing data continued to be somewhat mixed. The Commerce Department said durable goods orders increased for the second time in three months, industrial production was up 1.1%, and manufacturers in the Fed’s New York region reported a strong rebound from the previous month. However, the Philly Fed’s manufacturing survey turned negative for the first time in eight months.

Inflation remained moderate as declines in energy costs helped offset increases in other consumer prices, leaving the Consumer Price Index flat for the month and at 2.3% for the past year. Meanwhile, the Bureau of Labor Statistics said wholesale prices fell 0.2%, putting the year-over-year wholesale inflation rate at 1.9%.

Both consumer spending and personal incomes rose, according to the Bureau of Economic Analysis, while the Commerce Department said retail sales were up 0.1% for the month and 6.4% from the same time last year.

(This update is compliments of in him and him and him Coaching Client and Financial Advisor, Fady Chaccour)

Kerry

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