Greg Heiple's Blog--

Cockroaches & Casinos Love Cap-And-Trade

2009-06-27T08:34:00.038-05:00

Cockroaches and Casinos. When you see one, you know there are more.

The cockroaches are at it again. Buried inside of the, "Cap-and-Trade" legislation is yet another way for Wall Street to turn a nice normal market into a wild west casino.

Just when you thought that we were done with, "Too Big To Fail" Wall Street has found another market to speculate on. The poster child of big: our planet.

Excessive speculation has lethal consequences.

Let me explain.

Over the years, the supply and demand dynamics of fossil fuels hasn't changed that much. However, rampant speculation has. In 1991 a little piece of legislation know as, "Bona fide Hedging Exemptions" enabled Wall Street to begin speculation in the commodities markets. These exemptions, eradicated rules that prevented rampant speculation. These were the very rules that had been in put in place to prevent another great depression. In 2008, according to the Chicago Board of Trade, 75% of all trading on the CBT was speculative.

This explains how gasoline goes from $1.65 a gallon to $4.11 a gallon in 9 months without a substantial change in supply and demand. Bona Fide Hedging Exemptions open the door for rampant speculation. If Cap-And-Trade passes, your utility bills will be vulnerable to the same type of wild and unpredictable swings. Can anything good come from that?

Cap-And-Trade looks like it's trying to get rid of the cockroaches and clean up the environment, but in reality it is building the Tashmahal of casinos for these little critters to speculate on the fate of our planet.

Let's keep the cockroaches out of the casinos.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

7000 Years of 100% Proof--

2009-06-18T04:28:00.061-05:00

The first scale was invented in 5000 BC.

The scale enabled abstract concepts and situations to be quantified and visualized. It turned invisible problems, into visible solutions.

The result: Business Boomed.

With the invention of money (coins), the scale increased in importance. This simple, handy and tactile tool helped sustain all money based economies. You don't have to know math to balance a scale.

Then, in the 1960's things changed. Complexity cannibalized simplicity.

The simple, and visible two-part scale gave way to the more precise and invisible electronic scale (complicated financial models). Wall Street jumped on this change like a scorpion hopping on a frog.

This change allowed Wall Street to invisibly calculate, predict and project in a whole new way. Intoxicated by this new ability, few people questioned the assumptions that were built into these new invisible scales. Only financial experts know how to write out an efficient frontier calculation that will optimize an investment portfolio.

Ask any modern day financial engineer to explain how he manages investment risk in less than five words, and he'll tell you that it can't be done.

Ask a Roman or an Egyptian from 5000 BC how they manage risk, and they will say, "Balance a scale".

7000 years of proof that a two-part scale works 100% of the time.

49 years of proof that complicated financial models work 50% of the time.

Makes you think that we need to bring back the scale doesn't it?

Greg Heiple
218 E. Eufaula
Norman, OK 73069

How Long Would You Stay Seated?

2009-06-07T06:47:00.019-05:00

Suppose I had a magic eye dropper and I placed a single drop of water in the middle of your left hand. The magic part is that this drop of water is going to double in size every minute.

At first nothing seems to be happening, but by the end of a minute, that tiny drop is now the size of two tiny drops. After another minute, you now have a little pool of water that is slightly smaller in diameter than a dime sitting in your hand.

After six minutes, you have a blob of water that would fill a thimble.

Now suppose we take our magic eye dropper to Fenway Park, and, right at 12:00 p.m. in the afternoon, we place a magic drop way down there on the pitcher’s mound. To make this really interesting, suppose that the park is watertight and that you are handcuffed to one of the very highest bleacher seats.

My question to you is, “How long do you have to escape from the handcuffs?” When would it be completely filled? In days? Weeks? Months? Years? How long would that take?

The answer is, you have until 12:49 on that same day to figure out how you are going to get out of those handcuffs. In less than 50 minutes, our modest little drop of water has managed to completely fill Fenway Park.

Now let me ask you this – at what time of the day would Fenway Park still be 93% empty space, and how many of you would realize the severity of your predicament?

The answer is 12:45.

If you were squirming in your bleacher seat waiting for help to arrive, by the time the field is covered with less than 5 feet of water, you would now have less than 4 minutes left to get free.

And that, right there, illustrates one of the key features of our economy and the financial markets.

The action really only heats up in the last few moments and unless we are prepared with a strategy to deal with exponential growth, we are sure to drown. BalanceZone Investing is a potential strategy to defend against this type of turbulence.

We sat in our seats for 45 minutes and nothing much seemed to be happening, and then in four minutes – bang! – the whole place was full.

Dr. Albert Bartlette created this story. I found it on Chris Martenson's web site.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

Listening Leads Our Economy Out of Recession

2009-05-26T07:36:00.048-05:00

When you wake up in the morning, who do you listen to?

Given the recent chaos and confusion of our financial markets, many people are now turning to the financial media like never before. The problem with this, is that the media can only transmit, they cannot listen.

I think, from an investors perspective, we've temporarily decided not to trust individuals. We'd rather have, objective information from unbiased sources. It seems safer and more prudent, but is it good for our economy?

Studies have proven that the feeling of , "Not being heard" is one of the most destructive thoughts a person can have. It hurts. From an economic perspective, when lots of people feel this way, we call this a recession. One of the best ways to get rid of this hurt/recession, is to communicate with another human being.

So, you want to help reboot the economy? Why not turn the TV off and try a little listening?

Good listeners become popular, and after a while, they learn something.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

Organ Donors & Investors

2009-05-22T06:56:00.025-05:00

Why are there such a huge discrepancies in organ donor programs? The answer will surprise you.

Denmark 4%, Netherlands 28%, England 17%, Germany 12%.

100% for Austria , France, Hungary, Poland, and Portugal.

You might think that it has to do with culture and or religion. It's not. It's the form. In the low participating countries, the form at the Department of Motor Vehicles reads,

"Opt In, ---check the box below if you'd like to participate in the organ donor program". With this form, people don't check the box, so they don't join.

In the high participating countries, the form reads,

"Opt out, check the box below if you do not want to participate in the donor program. With this form, people don't check the box, but THEY JOIN!

We like to think that we make our own decisions. But maybe not. Maybe the people who are designing our forms have more control over our decisions that we know? I think this is especially true for the investment houses that produce monthly investment statements and financial literature.

Don't let a form decide for you.

Click on the picture, there is a solution.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

Layaway Plans Save The Economy?

2009-05-18T15:27:00.046-05:00

Remember the old fashioned, "Layaway Plans"? I began wondering, how much would Americans save if they stopped paying interest on their credit cards and started using, "Layaway Plans"?

People would save one billion dollars annually.

Retailers would save 23 billion dollars annually.

Maybe we should, "Laytobed"the credit cards, and start dancing with the, "Layaway Plans"?

The interest people are paying to credit cards as a percentage of net family income has skyrocketed from .7% in 1970 to ----- 15.2% currently.

Sure, using, "Layaway Plans" will probably slow the growth of our economy, but it will fatten your wallet.

The question is, ----- Who's economy are you carrying in your wallet?

Greg Heiple
218 E. Eufaula
Norman, OK 73069

Invisible Risks

2009-05-15T10:39:00.013-05:00

If cars were invisible, the risk of driving would be huge.

Cars are not invisible. As long as drivers can see other drivers, even without speaking to one another, drivers can manage traffic risks.

Unfortunately, investment risk is invisible to most people.

Now, that's changed with the new release of the BZ Statement Tool. Investment risk is no longer invisible.

If you can SEE the problem or risk, you can deal with it.

Click on the picture and SEE how BZ Investors are shinning a light on this formerly, invisible problem.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

25% Return = $0.00 Profit?

2009-05-11T09:02:00.030-05:00

Sometimes, "Percentages" can be misleading. Example--

Initial investment: $100

Earn-- 100% and at the end of the year you have $200

Lose-- 50% and at the end of the year you have $100

Gain-- at the end of two years $0.00

Percentage gain?-- 25% Average Annual Rate of Return

Annual Percentage returns don't matter nearly as much as marketers of financial products and the financial media would like for us to believe.

All that really matters is when did YOU buy and when did YOU sell.

Click on the picture to learn how BZ investors are learning to focus on their personal return, not the posted percentage return.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

Fearless Investing (2)--

2009-05-05T04:56:00.006-05:00

Repeat 500 times one thing. OR--

Repeat 500 things one time.

Good investors know that they must FOCUS on just one thing.

Focus on your investing behavior, and your results will amaze you.

Click on the picture and learn how BZ Investors are learning how to focus on one thing.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

Fearless Investing

2009-04-29T12:31:00.028-05:00

There's no shortage of experts telling you, "How To" deal with your money:

Suze Orman will tell you, "How To" manage your money. Dave Ramsey will tell you, "How To Get Out of Debt". And Jim Cramer will gladly tell you what to buy-buy-buy & sell-sell-sell. But how do you get rid of the FEAR of Losing Money? You don't unless you practice dealing with this fear of losing money.

Markets don't lose money ----- people do. Click on the picture and learn how BZ Investors have learned how to become, "Fearless Investors".

Greg Heiple
218 E. Eufaula
Norman, OK 73069

The Art of Failure--

2009-04-23T14:16:00.036-05:00

The United States of American is, well let's say, "Artistic" when it comes to failure.

More specifically, we seem to be good at combining failure with, forgetting and forgiving.

Our culture encourages people to chase their dreams no matter how brilliant, distorted or ill-founded they are. I think, in a strange way, this authentic artistic blend of failing, forgetting, and forgiving is what makes the U.S. the greatest economy this planet has ever seen.

The rest of the world--- Not so much.

I think it helps explain why 8 out of the top 10 Universities in the world are located in the U.S.

"Artistic Failure", is part of our DNA, and so is, "Artistic Success".

BZ Investors know how to deal with both.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

Citizens Against Hedge Fund Health Care--

2009-04-21T09:04:00.032-05:00

Look at this picture.

Is this a Health Care Provider or Hedge Fund Manager?

Don't they look similar?

Excessive complexity is the common thread in both cases.

The cure for both is simplicity, transparency and citizenry.

True, simplicity and transparency vaporize profits faster than Kryptonite takes down Superman. However, in the absence of simplicity and transparency, our Code Red economy and health care system might get coded D.O.A. if things don't change.

This change means that we become citizens of our money and our health.

Citizen.----- It's not a word, it's a way of life.

Set it & Forget it sounds great. However, in real life, we all know that is doesn't work.

Whether you are buying prescription drugs, or signing up for your 401k, act like a citizen. Be consistent and ask hard questions. You're are not a "Participant" you are a "Person". You are not a "Patient". You are a "Client". You cannot control what happens, but you can always control how you respond. Respond like a citizen.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

Turnning Your 401k Into A Paycheck

2009-04-18T07:18:00.024-05:00

When you retire, how are you going to turn your 401k into a paycheck?

There are lots of companies, calculators, and software programs that will teach and sell you a service, product or plan on how to do this.

However, after the purchase, what do you do?

How do you monitor your investments? How do you make decisions? This is your life savings. It is serious and it's not dress rehearsal.

Financial Triage?

Even with the best financial service, product or plan, -----Stuff happens.

And when it does, how you respond will be the difference between profits and losses. The Balance Zone Investment Tools bridge this gap. They enable you to practice dealing with, "Stuff Happens" and make adjustments to your service, calculator or plan when life suddenly changes.

I could teach to you the BZ tools and concepts. Instead, I have decided to offer you an opportunity to learn. I look at it this way. If I teach and or sell you something, I rob you of the learning experience. The BZ team isn't interested in robbing anyone. Wall Street has done enough of that. If you learn the BZ system, you should have a pay check that not even your Grandkids will outlive. Click on the picture and start learning how to turn your 401k into a paycheck.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

Learning From An Avalanche?

2009-04-15T10:38:00.018-05:00

And the dog says to himself, "If I sit on top of this sand pile long enough, I am going to know which one of you grains of sand caused this avalanche!" (In case you are wondering, this dog works for the financial media).

We should have seen that our financial sand pile was getting too steep. Now that the avalanche has occurred the financial media is looking to find and blame the one grain of sand that caused the avalanche. Truth of the matter, we will never know.

It took a lot of people a long time to build up a pile of sand this big.

Instead of looking for this ethereal grain of sand, learn to focus on your BZ Statement Tool. The scale can't lie, and if it gets too steep (out of balance), then you know what to do.

Click on the picture to see how BZ Investors are learning how to avoid financial avalanches.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

W-- We've Only Just Begun

2009-04-12T09:16:00.019-05:00

Sometimes, the market acts like a, "W".

History treats the 1929 stock market crash as an event. In fact, it was more like Karen Carpenter's famous song, "We've only just begun. The crash was the genesis of a series of tremors that moved the markets up and down like a, "W" until 1942.

After the crash of 1929, the S&P 500 lost as much as 20 percent of its value on 11 separate occasions throughout the 1930s and into 1942.

During this time period, for those investors who clung to traditional Wall Street theory, (stay the course, buy and hold, & ride the storm out) they did not break even until 1954! Clearly there were opportunities during this time period, but very few investors were able to take advantage of them.

Armed with the BZ Skill Builder and Statement Tool, you now have the tools necessary to navigate through any turbulent market. Click on the picture and start learning how to prepare for the "W's". And remember the great financial advice from the legendary singer Karen Carpenter,

"We've only just begun".

Greg Heiple
218 E. Eufaula
Norman, OK 73069

What's Important To You?

2009-04-05T11:43:00.012-05:00

When you walk out of your home everyday, what do you grab? For most people it's: car keys, money, and cell phone.

You do this because these are the tools that enable you to survive. Now think about your investments. Most people rarely look at or use their investment statements. Given the importance of this document--

Maybe you should?

These items have all been simplified to the point where everyone knows how to use them.

Now, with the BalanceZone Statement Consolidation Tool you can turn your old fashioned investment statements into a simple but powerful investment tool. If your investments are important to you, click on the picture to learn more about the BalanceZone Tool Set.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

Quadrillionaire?

2009-04-01T14:53:00.017-05:00

So you ask, what does a quadrillionaire look like?

This cube of pennies is roughly a half-mile wide, 986 million miles high, and would weigh an astonishing three billion tons.

With numbers this big, it is more important than ever to watch YOUR pennies if you want to become a quadrillionaire.

Click on the picture to learn how BalanceZone Investors are watching their pennies.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

FedEx Stays Focused & That's Why They're So Good

2009-03-31T09:18:00.022-05:00

Have you ever noticed the, "Arrow" in the FedEx logo?

It's between the, "E and the X".

My friend John Rowe, (ACT database guru www.john-rowe.net ) pointed this out to me.

Isn't it interesting what we see? My point is that when you get your monthly investment statements, most people only see what they want to see. The bottom line.

True, the bottom line is important. However, adding money when the bottom line is moving up, and taking money away when the bottom line is moving down, is buying high and selling low!

Nothing good can come from that!

You can use the BZ Statement Consolidator to change your focus.

Learn to watch the, "Scale Line" not the, "Bottom Line".

The secret---- The only way to balance your scale is to buy low and sell high.

Click on the picture and learn how to start chaning your foucus.

Your bottom line depends on it.

Greg Heiple
218 E. Eufaula
Norman, OK 73069

Crisis of Credit Explained in 11 Minutes

2009-03-23T21:06:00.004-05:00

Greg Heiple
218 E. Eufaula
Norman, OK 73069
405-447-5535

401k Statement Shock---

2009-03-23T06:56:00.015-05:00

It is hard to trust the stock market right now.

However, in the long run I think it's better to trust all of the time and be disappointed sometimes than to trust none of the time and be miserable.

Click on the picture and learn how BalanceZone Investors are regaining their trust and learning how to deal with 401k Statement Shock.

Greg Heiple
218 E. Eufaula
Norman, OK 73069
405-447-5535

The FED Spread--- A New Economic Indicator

2009-03-19T13:59:00.009-05:00

The, "Fed Spread" is my new economic indicator.

It is the difference between the value of a food stamp relative to the value of the U.S. dollar.

Since Mr. Bernanke just printed one trillion new U.S. dollars, I think it's safe to assume that the, "FED Spread" will be getting much wider in the near future.

Greg Heiple
218 E. Eufaula
Norman, OK 73069
405-447-5535

401k Confusion-- They All Look The Same!

2009-03-16T06:18:00.008-05:00

The Average 401k has 13 investment options. So, contingent on how many investments you choose, you are faced with a staggering number of combinations. Starting with one selection it starts at 13 and goes from there:

13
169
2197
28561
371293
4826809
62748517
815730721
10604499373
137858491849
1792160394037
23298085122481
302875106592253

With a BalanceZone 401k approach, you'd have 2 decisions to make. Now that's something to think about.

Greg Heiple
218 E. Eufaula
Norman, OK 73069
405-447-5535

Cramer TKO'd By Stewart

2009-03-13T17:03:00.009-05:00

Jim Cramer and Jon Stewart went toe-to-toe last night. It was just like Ali-Foreman, only with more head trauma. In 8 minutes, Stewart delivers the BalanceZone message that took me 8 years to write. Warning--- There is some profanity in this video.

Let me know what you think.

The Daily Show With Jon StewartM - Th 11p / 10c

Jim Cramer Unedited Interview Pt. 3

Daily Show Full Episodes
Important Things w/ Demetri Martin

Political Humor
Jim Cramer

Greg Heiple
218 E. Eufaula
Norman, OK 73069
405-447-5535

The Key To Managing A Crisis

2009-03-05T08:54:00.003-06:00

The key to managing a crisis, is to keep your eyes focused on the long-term,

While you are dancing in the flames.

Sir Philip Hampton said this. I think he got this one right.

Greg Heiple
218 E. Eufaula
Norman, OK 73069
405-447-5535

The Rule of 2

2009-03-03T18:53:00.005-06:00

The Rule of 2 :(

The stock market can cut your wealth in half at any given moment.

Mysteriously, the stock market doubles your money every 8 to 12 years.

Experts are right 50% of the time.

Greg Heiple
218 E. Eufaula
Norman, OK 73069
405-447-5535