The characteristics of successful investors:

http://finance.yahoo.com/news/5-questions-successful-investors-always-140420737.html

Bottom Line:  In the link there are five different guidelines of successful investors that are useable for anyone.  It’s rare that I come across investment advice I think is useful to share but it falls inline with my strategy which is as follows:

1. Cleary Identify the reasons you are making an investment (and no, making more money isn’t enough)
2. Study your investment often enough to ensure the reasons you invested are still preserved
3. Sell when the reasons you invested begin to change for the negative

Sound complicated…  It’s not as much as it may sound.  Here are the first three guidelines I use for investing in individual stocks. 

1. Companies that have more cash than debt on their balance sheet
2. Companies that are growing top line (revenue) year over year
3. Companies that paying a dividend that yields more than fixed income investments

So using those first three qualifiers I would only sell an investment if two of those three began to change for the negative. 

Hopefully this helps.  Feel free to email me if it doesn’t make sense. 

Clarifying Verizon's end to unlimited data:

http://allthingsd.com/20120517/verizon-unlimited-users-plans-not-going-away-but-options-likely-to-narrow/?reflink=ATD_yahoo_ticker

Bottom Line:  Here’s an update to my story yesterday regarding the end to Verizon’s unlimited data plan for grandfathered users.  The unlimited data plan will still be able to be used for those that are still using it but going forward those users will only be able to keep it if…

1. They stay on the 3G or 4G network.  Verizon will not allow the unlimited plan for any 4G LTE phones
2. You pay the full face value of the phone (this is usually $600 to $800 per phone) rather than the traditional $99 to $199 with a two year contract.

This will mean that almost everyone will in effect be kicked off of the unlimited plan upon the next phone upgrade but won’t apparently be something that has to be dealt with this summer for all current unlimited users.

Comcast to start charging "data hogs" more for internet use:

http://money.cnn.com/2012/05/17/technology/comcast-broadband/index.htm?source=yahoo_quote

Bottom Line:  And then there is this…  Do you have any idea how much data you use online in a given month?  I know I don’t.  We’ve never had to consider this but now if you’re a Comcast (Xfinity) internet user you may have to think about data use. 

Comcast is cutting off data for the base monthly price at 250 GB.  Each additional 50 GB will be $10.  Now the odds are not you nor am I using 250 or more.  Comcast says this will only affect 1% of their users (which will keep this from being as big of a deal as AT&T’s throttle gate) but I can see us growing into this potentially being an issue as we progress into the internet TV age, buy tablets in addition to smart phones that use our home Wi-Fi in addition to our computers.

Dollar rises in value for 15th consecutive day:

http://www.marketwatch.com/story/dollar-stays-on-fire-set-for-15th-day-of-rally-2012-05-18?siteid=yhoof2

Bottom Line:  Earlier in the week I mentioned it might be the right time to plan a European vacation as the dollar have gained a considerable amount of value against the Euro.  That’s still continuing as people are fleeing the Euro and moving towards the greater perceived safety of the US dollar.  It’s now hit 15 consecutive days.  In addition to the benefit of currency exchange – we’re all seeing the benefit in the form of cheaper commodity prices.

Most commodities (including oil) are traded in US dollars.  As the dollar has gained value it’s brought commodity prices lower for us with oil falling from just over $100 per barrel two weeks ago to $92 currently.  This is helping to bring down gas prices and the cost of other wholesale goods.

President Obama's re-election odds:

http://www.realclearpolitics.com/epolls/other/president_obama_job_approval-1044.html

 &

http://www.realclearpolitics.com/epolls/2012/president/us/general_election_romney_vs_obama-1171.html

Bottom Line:  This week show President Obama gaining a point in the RCP poll average to 48%.  At this point in the cycle it historically provides President Obama with a 62% chance of winning re-election (up from 57% last week). 

Taking a look at head to head polling Obama leads Romney 46% to 44% and in the estimated electoral vote counts based on state polling data Obama is showing a 303 to 235 electoral advantage (270 is required to win the election).

Wendy's isn't putting "red heads" on sale - just coffee:

http://consumerist.com/2012/05/wendys-offer-of-a-small-hot-redhead-confuses-those-unaware-of-its-name-for-coffee.html

Bottom Line:  Imagine the excitement of young men all over the country yesterday when they came across a coupon Wendy’s introduced for a “free hot red-head”.  After all we’re all familiar with the Wendy’s logo…  This might be exciting or perhaps just a great marketing ploy.  It turns out that Wendy’s calls its coffee “red head”, who knew?  So those who redeem with coupon will walk-out with coffee in hand rather than “Wendy’s” hand.

Trade war brewing?  US hits Chinawith new solar tariffs:

http://www.reuters.com/article/2012/05/18/us-china-trade-idUSBRE84H06O20120518

Bottom Line:  So overnight the US decided to place a 30% tariff on Chinese solar products.  That means that in general the cost of buying solar equipment here will rise.  It’s true that China has been undercutting solar pricing in the US to the extent that it’s near impossible for most American solar companies to become profitable and compete.  It’s for you to decide whether you’re willing to pay more for solar products so that domestic companies have a competitive chance.  The implications though could be much greater than solar.

To put it mildly, Chinese relations are strained.  This isn’t helping and now China is considering retaliation.  That’s not something to take lightly.

China is now the world’s second largest economy and as such carries more weight economically than any country other than the US.  If they decide to snub us our economy could take a huge hit from them not doing business with us.  Additionally they are the largest holder of US debt (outside of our own Government) and could choose to stop buying it – which would put a huge halt into the way we operate in Washington (which wouldn’t all be bad).  In any event this is something that we need to watch closely.

Verizon to end unlimited plans for grandfathered users this summer:

http://news.cnet.com/8301-1035_3-57435601-94/verizon-to-kill-unlimited-data-plans-for-existing-subscribers/?tag=mncol;topStories

Bottom Line:  Hmm...  Perhaps Verizon's approval advantage over AT&T is getting ready to evaporate.  While the only unlimited plan currently available for new users is Sprint there are still many Verizon users who still have their grandfathered in plan from the days when Verizon offered one.  That will soon end.

At some undisclosed date this summer Verizon will force all users onto a 4G LTE plan that's not unlimited.  This could make Sprint that much more attractive to those Verizon users.  If this affects you and you want to make the move (even if you have time left on your two year contract) I'd force the issue with Verizon because they'd be changing the terms of the agreement you entered into (even though they allow themselves to do so in the fine print).

Next generation iPhone screen will be 30% larger than previous iPhones:

http://www.technolog.msnbc.msn.com/technology/technolog/next-iphone-will-have-4-inch-screen-report-775519

Bottom Line:  So the next generation iPhone will have a 4 inch screen corner to corner adding a half inch over all previous versions.  It's an interesting mobile world.  Apple is working on creating a smaller iPad as an alternative to the full size one at the same time they're working on a larger screen on the existing iPhone.  Maybe they can just turn the small iPad into a phone and be done with it.

New foreclosure activity down 14% over same time last year:

http://www.cnbc.com/id/47451297?__source=yahoo|headline|quote|text|&par=yahoo

Bottom Line:  Not to be repetitive but as a reminder the number I most care about with regard to foreclosures in the new foreclosure filing information.  That's an indication of what the future of housing looks like.  The news continues to improve. 

New foreclosure activity dropped 14% in April over April of 2011.  As long as that number continues to drop year over year we'll make progress in the housing market. 

Refi's starting to catch fire as HARP takes hold:

http://www.businessinsider.com/good-news-mortgage-applications-surge-92-2012-5

Bottom Line:  As an added bonus (after the drop in new foreclosure activity) we also are seeing a spike in refi activity (up nearly 10%) in April.  Near record low mortgage rates continue to be beneficial but that wasn't the driving factor in my estimation as we've experienced near record low mortgage rates for an extended period of time so most that could have refi'd already had done so.  I think it has a lot to do with the expanded HARP program starting to take hold.

I've shared the information regarding the new HARP program from the first announcement in November and chronicled the lack of adaptation by banks in December through February.  That began to change after the settlement with the Federal Government on issues related to the housing crisis and robo signing mess. 

These days’ underwater homeowners who have mortgages backed by Fannie Mae and Freddie Mac can refi their homes at current interest rates provided they're on time.  Ashley and I have been able to do this with the condo she purchased before we were married and Jim is doing it right now with his home. 

This is the opportunity homeowners, who aren't in distress but are underwater, had been looking for and most big banks are now participating.

Half of adults under 34 don't use traditional banks effectively:

http://www.usatoday.com/money/perfi/credit/story/2012-05-15/alternative-financial-services-underbanked-millennials/55028830/1

Bottom Line:  If ever there were a telling story that clearly indentified the dearth of financial education in this country it's this one.  Sure many banks aren't as friendly as they used to be and if you're not diligent you can become hammered by fees but the best response isn't to drop out of the banking system. 

We need to do a much better job of educating our kids regarding finances.  Not only are half of young adults missing out on interest from their earnings (and clearly not saving) they are paying a fee for check cashing (about 30% of those under 34 use check cashing services) and they are paying a fee for a pre-paid debit card.  Beyond those financial inefficiencies they also are missing out on the opportunity to build a relationship with a bank and establish credit.

Attractiveness affects who we trust with our money:

http://www.businessinsider.com/people-prefer-to-invest-with-an-attractive-person-2012-5

Bottom Line:  I suppose it's not a big surprise that researchers are finding that the more pleasing someone is to the eye; the more likely we are to trust them with our money.  We already know through research that you're more likely to get a job and make more money if you're attractive (and for men tall) but just as that's not always the best decision - neither is this... 

Companies that college grads want to work for:

http://images.businessweek.com/slideshows/2012-05-11/fifty-most-popular-employers-for-college-students

Bottom Line:  The underemployment rate for 2011 college grads is 52% so this year's graduating class will do well just to find full-time employment.  Very few of the 60,000 soon-to-be grads will get their dream job but this year's survey of companies does continue to tell a few stories.

1.  Tech is still on top (the most desired job is at Google and # 2 is Apple)

2.  Stability is key (companies most desired are established brands that have a long track record)

3.  Brands kids identify with are brands they want to work for (like Disney at # 3)

The survey is a good barometer of the future products and services these college grads are likely to patronize as well.  That continues to bode well for the companies mentioned above but also a financial services firm like Ernst & Young or even the American auto companies, all of which increased in desirability this year.

Nintendo and Toyota team up on in car navigation (or gaming):

http://techcrunch.com/2012/05/16/this-wont-end-well-toyota-connects-with-nintendo-ds-for-in-car-navigation-interface/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&utm_content=Google+Reader

Bottom Line:  As though the lines of reality and fiction weren't already blurred enough there is this.  Nintendo and Toyota have created a partnership on a nav system that can gamify your in-car navigation system.  You'll be able to turn your town into a game-like background and even have your Mii's imported and interact with you.  Fun as a novelty, ok.  A good idea...  I think we're already distracted enough behind the wheel.

Florida's top small business concerns (from the SBDC):

Bottom Line:  In yesterday's Cheat Sheet I posted the information about the state rankings for small businesses (Florida was 29th or about average).  As a follow-up...

The Florida Small Business Development Center has surveyed small businesses and identified the top five concerns.

1.  Access to capital for expansion

2.  Lack of incentives

3.  Health care coverage

4.  Stable business environment

5.  Onerous State Regulations

There isn't really anything instructive I can offer with regard to # 2 (other than contact your state reps), # 3 (vote in November) or # 5 (again with the solution to # 2) but I do have a possible solutions to the biggest concern.  SBA and SCORE offer good assistance for many small business owners but I realize that they may not be the best options for existing businesses looking for additional funding to grow.  There are banking solutions. 

Often in business we seek loans from the traditional banks we do business with.  The best course of action if you're having trouble gaining access to capital is to pursue funding from a business bank.  Most traditional banks that target consumers aren't willing to take on as much small business risk as banks that are designed to provide business loans.  One I can recommend is the First City Bank of Commerce:   http://www.firstcityboc.com/

Foreclosed home owners finding a way to buy a home after two years:

http://www.reuters.com/article/2012/05/16/us-housing-borrowers-idUSBRE84F04Y20120516

Bottom Line:  It's hard to believe that we're six years, exactly, from the peak of the Florida housing market in May of 2006.  If not you or someone in your family, you almost certainly at least know someone who lost a home to foreclosure.  For those individuals that thought they may be locked out of home ownership for the long-term, we have better news.

FHA has become an exceedingly popular loan option for individuals that don't have 20% down and may have impaired credit as they will consider loans for people with credit scores as low as 620.  FHA only requires 3.5% down (though there typically are more fees that must be paid and mortgage insurance regardless of how much money you put down) but it does provide a path for home ownership for those who were victims of the housing bust but want to participate in current pricing and mortgage rates.

US can achieve energy independence by 2020:

http://www.usatoday.com/money/industries/energy/story/2012-05-15/1A-COV-ENERGY-INDEPENDENCE/54977254/1

Bottom Line:  So top Citigroup analysis’s have produced research showing that we have what it takes to become completely energy independent in the US by 2020 if we want to...  That's where the politics enter.  The good news is that aside from the lack of a current energy policy embracing domestic energy like natural gas, we are also becoming more energy efficient with energy at power plants, to our homes and our cars.  We also have increased domestic oil production by 15% since 2008. 

If we did become completely energy independent we still would have our resources trade in world markets which means that pricing would still be influenced by geo-political factors but in the worst case scenarios we would be far more secure not having to rely on countries that don't share our interests for our everyday needs.

We spend 30% more when we should "contactless":

http://articles.businessinsider.com/2012-05-15/news/31707713_1_credit-card-study-contactless

Bottom Line:  So years ago the retail industry learned that we spend more money (generally 10-15%) more when we use a credit card rather than cash.  MasterCard has updated the research to include all non-physical sales (online & mobile).  The result is even more staggering.  We spend about 30% more on average when not shopping in a store.  If retailers got into the credit card business because of the added sales associated with credit card use - imagine how important having a great online but now Mobil shopping experience is.  If you are a retail business owner this is also an important message for you.  Just having a website isn't scratching the surface of the potential. 

Google Chrome 19 is here and will sync your browser across all devices:

http://techcrunch.com/2012/05/15/chrome-19-launches-now-features-built-in-tab-syncing/

Bottom Line:  This is a cool update in the new version of Chrome.  Your favorites will be synced along with search history and even the ability to go back and forth in your browser with one device and having the result manipulate the search screen on another device (not terribly effectual but cool).

Microsoft will charge only $15 to upgrade Windows 7 to Windows 8:

http://www.computerworld.com/s/article/9227169/Microsoft_to_charge_15_for_Windows_8_upgrade_deal

Bottom Line:  Two notes...  It looks like Windows 8 will be released in June (the 5th being the most likely day) and if you buy a new computer starting in June with Windows 7 on it, you'll be cheaply able to upgrade the OS to 8 cheaply.  If you're in the market for a new computer you might be able to get a good deal by buying a computer with Windows 7 at a discount (once 8 is released) and upgrading Windows.

Facebook to buyout Lightbox - you have a month to download your photo collection:

http://www.slashgear.com/facebook-buys-out-lightbox-15228449/

Bottom Line:  Facebook is clearly betting big on social photos.  After the Instagram purchase Facebook is taking out the biggest online high-res photo site.  The deal will close in June so if you don't want your photo library with Lightbox to be shared with Facebook, you should download your photo library this month.