Utah Business Blog

By Dave Young, President of Paragon Wealth Management

When people find out I am in the investment business, they usually ask me where they should invest. They ask if it is better to be in stocks, bonds or real estate. They want hot tips like, are U.S. stocks better than international stocks? What about China and Brazil? Etc., etc.

Next, they tell me their horrible investment experiences. Typically, they are convinced that anything they invest in is destined for doom. This leads me to ask, “Why do the majority of investors have bad experiences?”

It doesn’t help that for the past 10 years, the stock market and real estate markets haven’t gone anywhere. After mostly going up during the ’80s and ’90s, the markets went down hard between 2000 and 2002. From 2003 through 2007, they did great. But, what came in 2008 to early 2009 was one of the worst bear markets in history, after which the markets rallied once again.

It’s understandable investors have had it tough. However, studies have shown that the average investor did poorly during the good times, too. Historically, retail investors have underperformed horribly when markets are bad. No wonder investors are frustrated and disillusioned.

So, are people hard wired to invest in the wrong place at the wrong time? Yes. And I’ll tell you why:  emotions. Most investors invest based on emotions, driven by a constant tug of war between fear and greed.

Will Rogers said investing is simple:  All you do is buy low and sell high. The problem is when prices are low, everyone is consumed with FEAR. And when people are afraid to invest, prices plummet.

To be continued…

About Paragon Wealth Management
Paragon Wealth Management is a wealth management firm that was established in 1986. They actively manage all types of traditional and retirement accounts such as IRA and 401(k) rollovers, and pensions and trust. Paragon is a registered investment advisor and has fiduciary responsibility. Call 800-748-4451 for more information.

Paragon Wealth Management is a provider of managed portfolios for individuals and institutions.  Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy.  All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice.  This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.  Past performance is not a guarantee of future results.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By Julie Johnson, president of Salt Lake’s Argosy University

One of the things I’ve seen as a result of this economy is a higher level of competition for jobs. Jobs are at a premium with so many unemployed workers. An overwhelming number of qualified, and over-qualified, workers are now pursuing jobs that would normally be challenging to fill. The lucky ones to secure these jobs are successful, in part, because they know how to differentiate themselves from the competition. One of the greatest ways to differentiate yourself is through education.

An education can do a number of things to distance you from the competition, including:

· Demonstrate your commitment to completing a project/assignment. School is a huge project that many people never complete. The fact that you committed to, and had the fortitude to, graduate speaks volumes about your personality and willingness to see project through to the end.

· Shows your desire to learn and understand a particular field. School requires a thirst for knowledge and a desire to learn. Not everybody has this desire, but typically those that do are more able to work through and find solutions to challenges or problems.

· Displays a commitment to achieving goals and milestones. Graduating or attaining a degree is a long term goal that many never attain. Graduating shows a great deal of determination and internal fortitude. Employers recognize this trait in job candidates and want people who know how to set and achieve goals.

When applying for any job the goal is always to set yourself apart from other applicants. While school may not be required for every job, it will show a potential employer that you have the drive, determination and patience to accomplish tasks and achieve goals and milestones.

Julie Johnson

Julie Johnson is the president of Argosy University, Salt Lake City. She has 14 years of experience in higher education and is committed to helping everyone realize not only that they can be educated, but also that they deserve to be. Julie is very involved in the community where she lives and has served on several boards and committees. She earned her MBA in 2000 but considers her family her greatest accomplishment.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By Rick Bartholomew, CEO, A Plus Benefits

It’s no secret that the economy is struggling and as a result there is more uncertainty than ever about the future, especially in terms of what businesses will survive this recession.

In times like these, there are certain qualities and characteristics that if a company possesses will help them rise above the noise and be successful and even prosper despite the weakened economy.

The two traits that that stand out most to me are:

· Integrity: When I speak about integrity it means taking the high road and really “walking the talk” as far as doing what you say you’ll do when you say you’ll do it. When a business has integrity and does what it says it will it is able to build trust amongst its clients, partners, peers and employees. In trying times a customer is far more likely to go to a business it trusts. Once things have become difficult it is too late to build a reputation of integrity. If dependable, trustworthy, reliable, consistent behaviors did not exist in the best of times they will not be expected in the challenging times.

· Vision: A business with vision knows where it wants to be and what it needs to do to get to that point. The vision has to be about the organization and not the individual. If the vision is about the company, a lot of the problems associated with egos and other self-serving traits can be avoided and the company and in turn its employees will be successful and prosper. Vision is particularly important during the down times because it gives the entire organization a platform and provides focus and a goal everybody involved in can move towards.

In bad times people naturally become selfish which is the opposite of the traits listed above.  Selfishness gets in the way of making good decisions for the organization as opposed to a decision that only benefits an individual. During a recession it is important to focus on the bigger picture of the company and its goals instead of becoming selfish. In my experience, trustworthiness, integrity and vision are business traits that employees will rally around in times of turmoil and ride to success.

Rick Bartholomew, CEO, A Plus Benefits

Rick Bartholomew began his career at A-Plus Benefits in 1994 as Director of Risk Management Services and has served as the Chief Executive Officer of A Plus since September of 1997. As CEO Rick’s responsibilities focus on developing and implementing the corporate strategy as well as managing the employee benefits side of the business.

Rick’s industry involvement includes leadership responsibilities within the Rocky Mountain Chapter of the National Association of Professional Employer Organizations (NAPEO). He served as the NAPEO Leadership Council Chair for Utah where he has been involved in several legislative efforts aimed at promoting best practices and improving the licensing and oversight of the PEO industry.

Rick has a Bachelor of Science degree from Brigham Young University and a Masters of Business Administration from the University of Utah.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By: Nathan White, Chief Investment Officer, Paragon Wealth Management

Continuation from this post…

Media & Current Affairs

In the short-term emotions rule and volatility reigns as investors are pushed around by headline news. A study of bear markets by Ed Clissold of NDR showed that bear markets that occur on rallies after recessions tend to be relatively short and not associated with a new recession- a sort of “echo bear”.

Worries of the European debt crisis and its ramifications are coinciding with the slowdown in economic data compounding the market nervousness. Many are worried that the austerity policies being promoted by the European Countries will stifle the economic recovery even though those actions would reduce their large deficits, which are what the markets were worried about in the first place. The U.S. administration is arguing the opposite of the Europeans with the belief that it is too soon to withdraw stimulus and reduce deficits. 

I find it strange that people are fleeing Euro zone currency and debt due to fear over deficits into U.S. government debt, even though the U.S. is preaching more deficit spending? Somehow I don’t think that will end well. We are therefore avoiding long-term U.S. treasuries, as they could be a time bomb waiting to happen. It might not happen soon, but the low return (below three percent for 10-year Treasuries at the time I am writing this) is not worth the risk in our opinion. 

Above all, the market hates uncertainty and with the bear market still very fresh in investor minds we are in a condition where people are very fast to sell and ask questions later. A report in the Wall Street Journal on June 14 by E.S. Browning (Rapid Declines Rattle Even Optimists) showed that the 12.4 percent drop in the Dow Jones Industrial Average from the peak on April 26 to June 7 occurred in only 42 days. The article indicated that the only other time that the Dow has fallen that fast in the past 80 years was at the start of the Korean War. 

Conclusion

As I write this article, the S&P 500 is down about 14.5 percent from its peak. That’s only 5.5 percent away from the negative 20 percent that most consider as the condition for a bear market. It seems the market is pricing in a double-dip recession whether it actually unfolds or not! We have been slowly raising cash over the past month or so and as the market continues to show uncertainty. If our indicators weaken, we will raise more, but for now we still want to have exposure to the market as it could strengthen as fear subsides and investors realize that the market has already priced in any bad news. After all, we are still in recovery mode. Although it is weak, a recovery is still a recovery. 

About the Author

Nathan is Paragon Wealth Management’s Chief Investment Officer. He attended the University of Utah to earn his undergraduate degree in finance and Westminster College for his MBA. He has over 12 years of experience in the wealth management industry.

Throughout his investment career, he has experienced a variety of different roles and responsibilities, including counseling and advising high net worth clients on investment allocation, working on an international equity trading desk, supervising trading personnel, and researching and analyzing investment opportunities. He also has the Chartered Financial Analyst (CFA) designation.

Paragon Wealth Management is a provider of managed portfolios for individuals and institutions.  Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy.  All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice.  This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.  Past performance is not a guarantee of future results.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

T. Craig Bott, president & CEO of Grow Utah Ventures

‘Nice guys finish last,’ or so everyone’s always been told. I’ve always wanted to believe that this is not true and through my own experiences have come to the knowledge and understanding that it really isn’t. In the world of angel investing and venture capital, nice guys can, and often do, finish ahead of the rest. Allow me to explain why.

Most investors will tell you that when listening to a pitch for investment money the one aspect that’s as important if not more important than the product or service the company provides is the personality of the business owner and executive leadership of the business. Often an investor’s decision to invest in a company is based off of how easy he or she thinks the company leaders will be to work with.

If the business owner is slow to accept an investors input or to be questioned about their business and strategy for using the investment money it raises red flags that the business owner is to arrogant and unwilling to accept a partner. Let’s face it, if a VC chooses to invest in a company he is doing so with the understanding that he’ll be a partner in the business and will help the business succeed through his financial investment as well as an investment of his time and expertise.

A couple of keys to consider when pitching an investor include:

· Be open to criticism and questions: In the long run an investor simply wants to understand the business and its potential. If you’re unwilling to share this information don’t hold your breath on receiving the investment money.

· Be open to an investor’s suggestions and recommendations: These investors are where they are for a reason. They may not understand your business and market as well as you do but they wouldn’t be where they are if they didn’t have good business sense.

· Understand your market: If you don’t know your market and how you’ll sell your product or service, it won’t take long for an investor to discover your lack of knowledge.

· Have a clear plan as to how you want to use their investment money: Nothing will drive an investor crazy more than somebody who doesn’t know exactly what they need to get their business up and running, or to take it to the next level.

I’ve seen top-tier companies with great products not receive investment money simply because of fears that the business owner will be a nightmare to work with. On the flip side, I’ve seen second-tier companies with strong leadership that understand the value of an experienced investor and good partner receive financing simply as a result of their attitude and because they were prepared.

T. Craig Bott, president & CEO

Craig has provided senior level management advice and council on strategy, marketing and management to hundreds of emerging and expanding businesses throughout the western United States. He directed Ernst and Young’s Entrepreneurial Management consulting services and owned and operated his own successful consulting business for many years.

He has advised and consulted with numerous civic and community leaders on how best to strengthen and grow their economic and business base and achieve job growth. He has directly advised the Utah Governor’s Office on strategies to strengthen and expand the Information Technology and Aerospace industries of the state. He is a nationally published author, and has acted as an adjunct professor at Weber State and Brigham Young Universities.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By Rick Bartholomew, CEO, A Plus Benefits

At one point or another every business needs to hire employees.  This is a good thing as it signifies that the business is growing and prospering.  Interviewing potential employees is an important part of owning and operating a business.  While each company and even each individual interviewer has his or her own way of conducting interviews few interviewers really know what they can and can’t ask.

The United States Equal Opportunity Commission has issued guidelines for questions that employers are prohibited from asking such as:

• “What is your maiden name?”

• “How old are you?”

• “Do you plan on having kids in the future?”

• “What religion are you?”

These questions are fairly obvious but in my experience, employers get into trouble when they try and engage in small talk.  Stick to relevant questions that will allow the applicant to discuss and demonstrate their capabilities, including questions such as the ones I’ve listed below:

• Warm up questions. These include questions like what motivated you to apply for this position?  How did you hear about this position?

• Work history. Question in this category may include, what special aspects of your work experience have prepared you for this job? Can you describe for me one or two of your most significant job accomplishments?

• Job performance. Everybody has weaknesses and strengths, can you please describe your strongest attributes pertaining to this job?  What are some areas you feel you could use improvement?

• Education. What aspects of your education or training have prepared you for this job?

In all interview situations its critical to use common sense, be polite and stick to questions that are relevant to the person’s ability to perform the job they’re interviewing for.

Rick Bartholomew, CEO, A Plus Benefits

Rick Bartholomew began his career at A-Plus Benefits in 1994 as Director of Risk Management Services and has served as the Chief Executive Officer of A Plus since September of 1997.  As CEO Rick’s responsibilities focus on developing and implementing the corporate strategy as well as managing the employee benefits side of the business.

Rick’s industry involvement includes leadership responsibilities within the Rocky Mountain Chapter of the National Association of Professional Employer Organizations (NAPEO).  He served as the NAPEO Leadership Council Chair for Utah where he has been involved in several legislative efforts aimed at promoting best practices and improving the licensing and oversight of the PEO industry.

Rick has a Bachelor of Science degree from Brigham Young University and a Masters of Business Administration from the University of Utah.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By Emmanuel Margetic, MultiLing Corporation

Utah businesses certainly do not operate in a bubble. Buyusa.gov reported that in 2008, 2,461 companies exported goods from Utah locations. In an international economy, it’s good for the state to be doing business internationally like that, but there is a risk.

When the Tower of Babel messed up the languages, some languages developed words remarkably similar to each other. It reminds me how so many different varieties of meat actually taste like chicken.

So, either these languages have some unsuspected similarities, or humans just have a ridiculous knack for inventing names and slogans that come remarkably close to awkward or silly words and phrases in foreign markets.

In a state that hosts one of the most linguistic universities in America, and where many people spend at least some time abroad, businesses may think they have easy access to the resources required to avoid making cultural or linguistic blunders. But one could think the same thing about the federal government. Remember when Secretary of State Hillary Clinton had a symbolic “reset” button during a major presentation to the Russian government? Her point was to show that they were resetting relations between the two nations. Well, instead of “reset” the word on the button was “overcharged.” This was pointed out by the Russian government official in front of all the invited press.

Another example of just how easy it is to make linguistic or cultural blunders is CNN’s report of a pharmaceuticals company releasing a new weight-loss pill they dubbed Tegro. Tegro is a nice enough, creative, generic name in America. Too bad it’s so close to T’es gros, which means “you are fat” in French.

One danger facing companies in Utah is the perception that spending a couple years in a foreign country or studying it in high school qualifies a person to translate business materials into a target language. That level of expertise will simply not guarantee that the business won’t pull a Hillary Clinton. Natives and experts who have a broad vocabulary and who understand slang, culture and expression are needed to ensure that a business doesn’t get embarrassed or sued.

Translation is needed in business for a variety of different reasons. Some products require user manuals and some companies need marketing materials. Some companies have products with vital information such as warning labels and instructions that, if neglected or misunderstood, “may result in serious injury or death.”

Businesses in Utah need translation just as much as anyone else that conducts business internationally, and they need it done correctly.

Regardless of whether a business is an enterprise, or whether it’s one of Utah’s 203,468 small businesses, translation vendors, like MultiLing Corp., are the safest route to avoiding the embarrassment and possible failure that’s possible through faulty communication. Great opportunities exist in foreign markets. Businesses just need to take the necessary precautions to ensure they are communicating to those markets in a way that is appropriate and relatable to them.

About the Author:

Emmanuel Margetic is the director of marketing and sales for MultiLing Corporation and has been working in the translation industry for more than 12 years. Margetic has in-depth experience helping clients achieve international status and brand recognition through effective, localized communication and documentation. His role at MultiLing allows him to interface directly with companies, giving him a firsthand look at the challenges and successes of international business. Margetic graduated with an MBA from Brigham Young University.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By Ryan Bingham – Benefits Advisor with Spectra Management.

Due to the complex and ever changing nature of health care policy it is understandable that the new healthcare reform legislation enacted this year, its provisions, and how Utah small businesses may benefit can be a perplexing and sometimes daunting challenge.

“Small Businesses who have struggled to continue their employer contributions finally have some light at the end of the tunnel,” said Brent Bennett, co-owner and Principal Business Advisor of Spectra Management.   One of the often overlooked benefits of the new legislation is a substantial tax-credit for small business for the employer contribution portion of their groups’ health plan.

There are some key facts about this legislation owners should be aware of that were specifically designed to help small business afford the cost of covering health care for their employees.

This tax credit becomes effective retro-active back to premiums paid starting January 1, 2010 and if eligible can be taken as a credit against the business or owners federal tax liability for the 2010 tax year.  Starting Jan. 1st, 2011 eligible employers will take as a credit toward payroll liabilities for federal tax withholding.

Small businesses that have not had health care coverage for their employees will receive the benefit of this tax cut as well if they initiate coverage this year.

Because of its broad eligibility requirements, it is estimated that 4 million small businesses are eligible for the credit if they provide health care for their workers. Eligibility will include both for profit and tax-exempt organizations.

This credit is currently worth up to 35% of a small business’s premium costs in 2010, (25% for tax-exempt organizations) and will increase to 50% (35% for tax-exempt) beginning January 1, 2014.

To ensure that small business owners receive the maximum benefit of this sweeping legislation, it is crucial they seek advice regarding this tax credit with a professional.

Additional information can be found under the link “Is your company eligible” banner our website.

There is also a free calculator to estimate if your company is eligible and what the value of the credit might be for your particular circumstance here.

Spectra Management is redefining employee benefits in Utah. Originally established in 1986, the company has a track record of providing local businesses with innovative health insurance, savings and retirement plans that make sense today—and for years to come. For more information, visit www.spectrabenefits.com or call 801.327.7205

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By Nathan White, Chief Investment Officer, Paragon Wealth Management

During the second year of an economic recovery, the economic data in the first year of a recovery is strong because companies ramp up production to refill depleted inventory levels, and economic activity in general resumes. As the growth rates come down in the second year, it often coincides with the stock market taking a break as well.

Part of the reason the market did so well in 2009 was because it was rebounding off extreme oversold conditions that were unwarranted. Now that we have entered the second year after the recovery low, the economic dad is slowing down, which is contributing to the reasons for the recent market decline.

The big question now is whether or not the recovery will continue, and if so at what pace, or are we headed for the dreaded double-dip recession scenario so widely reported in the press?

GDP, Income Figures, Government Actions

First quarter real Gross Domestic Product (GDP) was recently revised downward to a 2.7 percent annual rate, which is pretty anemic for this stage in the recovery. This shows that the recovery is not as robust as in past recoveries especially considering how severe the recent recession was. The economic data currently coming out is showing a mixed picture-as is to be expected at this stage of a recovery.

The main reason for the downward revision of GDP was that personal consumption expenditures were adjusted down and this is a significant portion of the GDP figure. It is a possible sign that consumers are still very timid and might not be willing or able to spend. On the other hand, income data show that personal income rose 0.4 percent in May, and this figure has been up for seven straight months.

Increasing income figures strengthen the recovery as it eventually provides people with more money to spend or shore up their finances. However, continued high unemployment, approximately one million less jobs than a year ago, is offsetting the benefits that are coming from income growth. For the most part the economic data is coming in at about average for this stage in the economic cycle. We hoped for better numbers due to the severity of the last recession. A less robust recovery is due to the damage done by the last recession and may indicate that we have not cleared all of the ghosts out of the closet yet.

Government actions have created a significant amount of uncertainty, which continues to hamper the recovery. The most positive figures coming from the economic data are the rise in productivity and corporate profits. These two data points have performed better than average, and in my view are the main support for the rally off the bear market lows.

The productivity data has enabled corporations to increase profits in the absence of significant increases in sales. I believe this is a significant positive factor for the market moving forward. If the recovery continues with even small increases in sales, it could considerably boost earnings. On the other hand, if the economy wanes high productivity along with current relatively strong balance sheets can serve to support earnings in the face of a condition in which they would normally fall. In the end, markets are moved by earnings. Even if we entered another recession, you could see corporate profits hold up relatively well, which would end up supporting equity prices.

Article to be continued next week…

About the Author
Nathan is Paragon Wealth Management’s Chief Investment Officer. He attended the University of Utah to earn his undergraduate degree in finance and Westminster College for his MBA. He has over 12 years of experience in the wealth management industry.
Throughout his investment career, he has experienced a variety of different roles and responsibilities, including counseling and advising high net worth clients on investment allocation, working on an international equity trading desk, supervising trading personnel, and researching and analyzing investment opportunities. He also has the Chartered Financial Analyst (CFA) designation.

Paragon Wealth Management is a provider of managed portfolios for individuals and institutions.  Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy.  All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice.  This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.  Past performance is not a guarantee of future results.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By T. Craig Bott, president & CEO of Grow Utah Ventures

One of the most common questions I get lately is if debt is good for a business, is there such a thing as to much debt? The obvious answer is eliminate or avoid all debt. The less debt you have the better off you are.

However, in most cases this just isn’t possible. In cases where no debt is not an option or a reality I advise the companies I work with to follow a couple of simple guidelines when assessing the amount of debt they’re carrying.

· What type of debt are you carrying? Is the debt a result of poor management and bad decision making? Could it have been avoided with the proper management and leadership? If the debt is a result of lavish spending for items such as luxury company cars for example, then it should be considered debt that absolutely could have been avoided.

· Will the debt prevent you from securing investment money and growing the company? I invest in companies and know for a fact that investors do not want to give you more money so you can pay off old debt or put it towards paying high salaries for an executive or support staff. In most cases, if the debt you have is from paying salaries you don’t stand a chance of getting additional funding.

· Will the debt limit your ability to accelerate sales and grow the business through gross sales? The quickest way to eliminate debt is to sell your product or service. However, if all of your time is spent dealing with the debt and you’re unable to focus on sales you’ll stand no chance of reducing the debt and will forever be caught in the vicious cycle of managing debt.

Every business is different and each case is unique. These guidelines might not apply to every situation but they do provide a solid foundation on which to assess the debt you’re business is carrying and can help you understand the financial health of your business.

T. Craig Bott, president & CEO

Craig has provided senior level management advice and council on strategy, marketing and management to hundreds of emerging and expanding businesses throughout the western United States. He directed Ernst and Young’s Entrepreneurial Management consulting services and owned and operated his own successful consulting business for many years.
He has advised and consulted with numerous civic and community leaders on how best to strengthen and grow their economic and business base and achieve job growth. He has directly advised the Utah Governor’s Office on strategies to strengthen and expand the Information Technology and Aerospace industries of the state. He is a nationally published author, and has acted as an adjunct professor at Weber State and Brigham Young Universities.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.