In 2000, while working at a technology company, I remember coming into work one day and our stock was up from $9 to $35. New to the Hi-Tech world with my 10,000 stock options, I thought – cool. Then the CEO came in a few days later and said, “We have just inked a new deal and our stock will be at $75.” I thought “cooler”! I remember the company became giddy with excitement; however, we soon found our worthless stock options at -.08 cents a share. The parallels of the Hi-Tech bubble of 2000 and yesterdays Real Estate bubble are identical in nature.

Here are 5 Significant Perspectives from Resolve Lending, Inc. on what I have personally learned through two amazingly complex financial bubbles.

1. Living “alone” in your financial stuff is toxic. Find a balanced financial (non-paid) voice to speak truth into your balance sheet. I’m talking about someone who knows your “financial stuff” inside and out. If this person doesn’t have your highest respect and cannot tell you ‘no’ then you are still living alone in your stuff. A balanced voice has saved me over and over.
2. When your barber owns more than one home or gives you stock tips, go home and sell everything. In other words, “when everyone knows something, nobody knows anything.” Be extremely aware of what Greenspan called “irrational exuberance.”
3. While finishing my masters a history professor said “read deeply, into one subject and your world will become as wide as it is deep.” We must ask ourselves if we can afford to live on the surface any longer. - READ DEEP READ WELL!
4. If you had just been shot in the chest – (which many have been recently), what value would a 30 year old AP reporter/blogger/ or TV commentator have to you? Many of us have been culturally conditioned during these financial bubbles to highly value and believe “news media writers.” When in fact they are professional writers – nothing more.
5. I recently heard a late night CSPAN panel with Warren Buffet and a group of his peers discussing international accounting regulations. The group agreed the problem with accounting is “you can put 5 Harvard PhD (CPA) in the room and they will all come back with different interpretations of the numbers. This holds significant importance if you put your faith in the stock market going forward.

If you have any questions give me call 425-802-3019  or email mailto:jeff@resolvelending.com