Topley’s Top Ten – August 28, 2019

Author

Matt Topley
August 28, 2019

1.This Has Been a Large Cap Growth Led Bull Market But Here Are The Long-Term Stats.

2.Small Cap Russell 2000 Closed Below Previous June Low…Continues to Trail S&P.

Small Cap 200day sloping downward and breaks June lows.

3.Tech Giants Capital Spending.

With FANG facing more andmore government scrutiny and political pressure on public companies not uppingcapital spending, an interesting chart below.

4.The Short 20 Year Treasury ETF

5.FED Fund Futures Betting on 1% Rates.

The market now expects the Fed to take rates below 1% by early2021. This chart shows the fed funds rate trajectory priced into the futuresmarket. Is the pessimism overdone?

WSJ-The Daily Shot

6.Hong Kong -26% Correction….Held End of 2018 Lows.

Hong Kong 30 Index

7.China Still -26% Off Highs….Testing 2018 Lows for 3rd Time.

FXI-China Large Cap

8.Emerging Market Bond Traders Are The Most Defensive Since 2008.

EM ANGST– Emerging-market investors haven’t been thiscautious since Lehman Brothers collapsed. High-grade dollar bonds in developingnations have returned 3% this month, while junk-rated securities in emergingmarkets have lost 2.7%, according to JPMorgan. The last time theoutperformance of the former was so big was in October 2008, the month afterLehman Brothers collapsed.

That’s fine for high-ratedcountries like Chile and South Korea, but not great for riskier oneslike Zambia and Lebanon.

FROM DAVE LUTZ At JonesTrading.

9.Where the Money is Flowing…Last Week…Inflation Protected, Gold, Treasury Bonds.

For the week ended 8/23/19, inflation-protected securities SCHP and VTIP, gold GLD, and interest-bearing treasury bonds GOVT saw the largest net inflows on an absolute basis.

Nasdaq Dorsey Wright  www.dorseywright.com

10.Humble leaders get to act like better humans.

  • Publishedon August 19, 2019

Samantha YoungManaging Director of Human Psychology ?Executive Coach ? Psychologist ? Trainer  109 articles Follow

“A leader is bestwhen people barely know he exists, when his work is done, his aim fulfilled,they will say: we did it ourselves.” Laozi

Thereis a crisis building in many of our organisations. Declining resourcing,employee engagement, wellbeing and performance. Accompanied by an accelerationin uncertainty, change, disruption and malaise. This perfect storm is hittingleadership like a tsunami and too often, leadership falls back on old ways ofmanaging. Cost cutting and downsizing programs are implemented which erodetrust and mutual respect. Fear breeds micro-management and blame. New changeinitiatives with sexy names and graphics formulated by consultants and seniorexecutive are rolled out to an increasingly cynical workforce. The deck chairson the Titanic are swapped around and new executives formulate a whole new raftof quick fix “solutions” that fail to turn the ship away from the icebergbut consume energy and time and resources.

Organisationsneed servant leaders. Leaders who see the true value of their people andcontinuously ask how they can serve employees as they improve the organisation.Power can corrupt the best intentions and cause leaders to become obsessed withoutcomes and control and treat employees as a means to an end. This engenders aculture of fear, which cripples innovation, creativity and collaboration.Everyone is fighting to get on the life boats.

Top-downleadership is outdated, counterproductive and to be honest, lazy. By focusingtoo much on control and end goals, and not enough on their people, leaders areactually making it more difficult to achieve their own desired outcomes. Theanti-dote is for leaders to adopt the humble mindset of a servant leader.Servant leaders view their key role as serving employees as they explore andgrow, providing tangible and emotional support to realise potential. Helpingour people to feel purposeful, motivated, and energised so they can bring theirbest selves to work is the true business of the modern leader.

Howto create a a culture of learning and authentic conversation and an atmospherethat encourages people to become the very best they can?

  • Ask, then listen. How you can help them do their jobs better? What do they need from you? How can you do better?

  • Implement. Small changes that demonstrate action from feedback create a virtuous circle of trust and engagement.

  • Create safety. Model a culture in which people can question and take risks without fear of repercussion. Encourage people to push on the boundaries of what they already know.

  • Be humble. Servant leaders give themselves permission to act like decent humans. To acknowledge that people bring their whole serves to work and wellbeing is a person’s core purpose.

  • The 3 buckets analogy. I have spoken with maybe hundreds of managers this year and they express a strong frustration with being too busy to work on the “people bit” of their roles, with diaries consumed by meetings, doing the work and fighting fires. But our time and money follow our priorities. By not investing time in our people, we are telling them they are not a priority. Imagine you have three buckets:

  • Blue – the amount of time you spend actually doing the job

  • Red – the amount of time you spend developing your people

  • Yellow – the amount of time you spend thinking about the business strategically

Howmuch time should you theoretically be spending in each bucket? And thenhonestly ask yourself how much time you actually are spending in each one. Ingeneral, managers tell me that they should be spending the majority of theirtime in the red bucket but are spending most of it in the blue, and nearly noneof it in the yellow. Doing the same things the same way but harder will guaranteethe same results and is the definition of insanity. Ruthlessly re-architectyour time and carve out space to listen and learn from those you serve and tothink creatively about how to do things better. Humble leadership should neverbe confused with weak leadership. It is, in fact, quite the opposite.

“As we look aheadinto the next century, leaders will be those who empower others.” BillGateshttps://www.linkedin.com/pulse/humble-leaders-get-act-like-better-humans-samantha-young/?trackingId=SL%2FA9oI6T3bYYrq3jRh%2BCA%3D%3D