“The power of faith is never recognized if placed in sin. But it is always recognized if placed in love.” Course in Miracles Text Page 421
What does "The Power of Faith,” Love and the above quote have to do with business development?
Everything is the answer! Your current “beliefs” about managed futures, which are probably defined by fear, rather than truth, may be costing you an opportunity to develop a long-term value based marketing strategy that leverages income potential of your traditional services. By shifting your perception or “beliefs” of managed futures from fear to truth, you release self-inflicted discomfort created by fear and open your mind to the awesome probabilities of increased business
with less risk.
FACT Belief and Truth
Before we progress to the business development strategy, see if your foundation of thought and belief needs adjustment. WHY? Since material reality begins with thought – an accurate thought process is paramount for success in any endeavor.
Please remember that we are ALL considered 'experts' in our respective industries. Our collective decisions influence the destiny of millions of people over a few generations. That is a colossal responsibility!
The following series of statements PROVE that belief interferes with truth. The series offers a few illusions we consistently hear from intelligent professionals.
BELIEF - "We can be sued - we don't want to be involved."
- Fact - I'm 2ND generation and never been sued! We live in a litigious society. Law suits are a mass expression of anger and blame. Live with principles, honor and reverence for all people; then anger and blame cease to exist in your reality. ( read A Unified Foundation for Investment Selection)
BELIEF - "We are a conservative managed futures are not conservative."
- Fact – Managed futures, are no more or less risky than mutual funds or any professionally managed investment. After 2008, we are all reminded of that fact, again! Futures reduce cash market risk. Conservative business strategies are adopted when futures are used for hedging. Bank loans are also easier to obtain when futures are used for hedging. When managed futures are prudently selected, and added to a traditional portfolio; the composite portfolio has less risk and volatility than ANY combination of investments built without them.
BELIEF -"Managed futures are dangerous." I love this one!
- Fact - Futures themselves cannot harm anyone. It is our belief and approach to any situation that creates our experience. Managed futures have proven to offset risk of traditional investments. Modern Portfolio Theory was awarded a Nobel Prize because diversification among asset classes was proven to reduce risk if the returns on each asset class are independent of each other. We understand that MPT was designed to function using risk free assets, however even when considering the inaccurate application of MPT among various risky asset classes, we can prove that managed futures can stabilize any composite return of any portfolio mix. That includes equities, hedge, index funds or any other risky investment.
REMEMBER that irrational fear founded on inaccurate “beliefs” creates a high risk environment because inaccurate thoughts based in fear can ONLY and will ALWAYS lead to poor decisions.
A Foundation for Intelligent Decisions
Any intelligent decision based on fact or personal circumstance to avoid managed futures must always be respected. However I need to respond to 'beliefs' and 'opinions' people perceive as facts. When 'beliefs' or 'opinions' are misconstrued as 'fact' we build a reality with no basis in truth.
If you are happy living with illusions, enjoy yourself. I truly understand and spend a minimum of two hours daily in that state of consciousness! For those who prefer a bit more strength brought to their decisions, consider the following.
I do my best to align my intentions and motives with action based on fact before making any decision. If I unknowingly act on fear-based beliefs, anger or judgment (a form of fear) without seeking truth, my actions consistently create loss. I need to move slowly, reflect and look at the intentions under every action and decision. When my intentions or energy is shifted from fear /anger into wisdom, proven by fact the daily process of creating business/life becomes joyful and energized!
- FACT: Use of futures, options and other derivatives are now a standard part of finance taught at all universities.
- FACT: We are in a major trend of expansion for the futures markets. It will become more difficult to create added value for clients using only traditional investments over the coming decades. You have four choices.
- Do nothing against the major trend and cost yourself and your marketplace lost opportunity.
- Allow your clients to learn about and use managed futures someplace else without you.
- Use managed futures like other people.
- Re-educate yourself and when appropriate allow yourself to use the managed futures marketplace with prudence and wisdom.
- FACT: There is a proliferation of books for both institutional and retail investors on the use of derivatives.
- FACT: American Express has awareness training. Management is aware of how emotion affects relationships and income. This statement is supported by an old book called “Emotional Intelligence” by Daniel Goleman Ph.D. – page 55.
POINT - How are your emotions affecting your decisions therefore the lives people you influence?
- FACT: When applied with prudence, hedging creates stability out of chaos. The futures markets exist to reduce price risk. Without the need for stability, futures would not exist. At times, hedging may be the only conservative path to price stability. Look at any college text book or commodity exchange web site for added information.
- FACT: Volatility of the stock market will probably increase over the next several decades therefore investor fear may also increase. Adapting to and seeking opportunity within the volatility may be a sensible alternative to reacting to volatility with irrational fear.
- FACT: Modern Portfolio Theory has proven to be the conservative approach to capital preservation and increasing long term value. Managed futures investment represents between 3 and 20% of a total portfolio. Managed futures may be integral to the allocation process because of non-correlation of both pre and after tax returns to any other investment. See http://research.safemoneymetrics.com There are traditional articles written by the exchanges and universities.
- FACT: This is 2010, I remember CNBC adding futures prices to their nightly stock commentary. That was over a decade ago.
POINT- Futures are becoming more acceptable to the investing public.
- FACT: With or without any of us, managed futures investment will grow. Your business can increase when objectively considering the needs of a potential audience. Our fear-based decisions may unknowingly hurt people by forcing them to into managed futures without you. Due diligence and objective analysis may or may not prove that SafeMoneyMetrics Risk Management services offer comfort and safety unavailable elsewhere! Do the research and make a decision!
- FACT: If a firm's managed futures business represents 10% or less of their total revenue mix they may fall under certain CFTC exemptions from registration. This exemption is a perfect vehicle for initiating profit centers using managed futures.
If we create a reality on beliefs or illusion in one area of life Lord only knows what we are doing elsewhere!
Remember
“Reality cannot break through obstructions you interpose, but it will envelop you completely when you let the obstructions go” Course in Miracles
Value Added Business Development
The question and answer format in article #1 Why Managed Futures. is designed for your clients. It prompts a thought process as to why they need your services. More important, using raw past performance data is unknowingly misleading and represents a major cause for substantial loss.“Standards for Advisor Evaluation” is a research and risk management document. It offers solutions to industry wide problems intrinsic with traditional methods of past performance evaluation. It’s Free – Always Wishing You Profit and Peace of Mind.