Topley’s Top Ten – July 11th, 2019

Author

Matt Topley
July 11, 2019

1.Highest Increase in Earnings was Healthcare.

Most S&P 500 sectors are expected to show earnings declines; health care is an exception

Cigna’s quarterly sales per share are expectednearly to double, even with significant dilution from issuing shares to helppay for its acquisition of Express Scripts.

Despite all the goodeconomic news, earnings growth is expected to slow to a crawl this year forlarge U.S. companies. It may also surprise you that the health-care sector isseen as one of the exceptions.

During the first quarter of 2019, earnings pershare declined from a year earlier for six of the S&P 500’s SPX, +0.45%  11sectors. These are the five that countered the trend, according to S&PGlobal Market Intelligence:

For the second quarter,consensus estimates among analysts polled by S&P Global Market Intelligenceare for the S&P 500’s weighted aggregate EPS to increase 2.2% from a yearearlier. Even so, all but these three sectors are expected to show declines:

Healthcare is one of the stock market’s healthiest sectors right now

Healthcare ETF not yet at new highs

2.Floating Rate Bonds …Money Poured in Last Year Now 8 Mos. of Outflows.

Funds that specialize in buyingjunk-rated corporate loans have recorded net outflows for 33 consecutive weeks,a record streak that highlights the diminished appeal of floating-rate debt at atime when the Federal Reserve is widely expected to start cutting interestrates.  Before the streak of outflows, which has drained $31.8 billionfrom the funds, investors had poured a net $10.5 billion into the funds in2018, largely reflecting bets at the time that the Fed would continue totighten monetary policy, WSJ notes

From Dave Lutz at JonesTrading

3.Frontier Markets Well Below Highs.

U.S. Continues to Dominate…Frontier markets less developed than emerging markets

4.Banks are Doing Deals Again

With Wall Street’s Secret Shackles Gone, Dimon Prowls for Deals

Source: Bloomberg

From Barry Ritholtz Blog

5.Banks Well Below Highs…Shrinking Valuations.

Five years ago, the S&P 500 banks as a group traded at aweighted forward price-to-earnings ratio that was 72% of the valuation for thefull index — a typical level. Now the group trades at a forward P/E valuation60% of the full index. So the discount has gotten significantly greater even asfinancial companies’ EPS growth is expected to lead all sectors.

Bank ETF well below highs.

6.Fear and Greed Index Barely Passed Neutral as Money Poured into Bonds.

7.June 2019 Historical Return.

8.Mortgage Applications Surge 26.8%…Re-Fi’s

Zerohedge

9.Exercising before study may enhance learning and stimulate new neural connections

July 2nd, 2019

Anew study involving mice has found a short bout of exerciseenhanced the expression of a particular gene that increases synapticconnections between neurons(Credit:bernardbodo/Depositphotos)

It is certainly no newsflash tosuggest exercise is beneficial for brain health, but exactly how physicalactivity confers cognitive enhancements is still not entirely clear. Compellingnew research from Oregon Health & Science University has discovered asingle session of exercise can enhance the expression of a gene that promotessynaptic growth in the hippocampus.

“Previous studies of exercisealmost all focus on sustained exercise,” explains Gary Westbrook,co-senior-author on the new study. “As neuroscientists, it’s not that wedon’t care about the benefits on the heart and muscles but we wanted to knowthe brain-specific benefit of exercise.”

The goal of this new study was tohome in on any specific neuronal changes that occur in the minutes and daysfollowing a single period of exercise. The researchers exposed a cohort ofotherwise sedentary mice to a two-hour exercise session on a running wheel. Thesingle bout of exercise was estimated as having a human equivalent of a weeklygame of basketball, or a 2-mile (3.2-km) run.

As soon as one-hour post exercisethe mice displayed enhanced synaptic activity in the hippocampus, a brain arealinked to memory and learning. Further analysis then revealed a surprising newdiscovery – the expression of a particular gene called Mtss1L was enhanced insingle neurons following the acute exercise session.

This is the first time scientistshave detected activity-dependent Mtss1L expression in single neurons. The geneis known to be involved in cerebellar synapse formation, and in this contextwas found to enhance the growth of dendritic spines, an

action that promotes new synapticconnections between neurons.

What this all suggests is that ashort burst of exercise seems to prime the brain for new synaptic connections,implying learning may be enhanced when preceded by physical exercise. Whilethis particular study only involved mice, there is an interesting body of priorwork to show exercise improving cognition in humans. From a longer six-weekstudy linking exercise to improved memory, to a shorterexperiment finding just 10 minutes of vigorous activityenhances cognitive performance, there is strong evidence the mechanismuncovered in this new research may translate to humans.

The next step for the researchersis to more closely investigate how exercise can directly improve memory andlearning via the expression of this particular gene.

The new research was published inthe journal eLife.

Source: OHSU

Found at Abnormal Returns Blog  www.abnormalreturns.com

10.Jim Kwik’s 5 Tips to Optimize Your Brain for Peak Performance and Success

by Austin Gillis | Mar 27, 2019 | Self-Improvement

When I was fifteen, I was what some wouldcall “socially challenged.” 

During the few years I attended publicschool (before transitioning to homeschooling), I was the kid nestled behindthe bushes at recess reading the latest Harry Potter novelor drawing fictional battles between my favorite characters from Lord of the Rings. 

Talking to others made me anxious andinsecure. The few friendships I had were inconsistent and confusing. I wassubjected to regular bullying, both physical and verbal. And finding a girl whowould give me the time of day–much less allow me to take her out on a date? Allbut impossible. 

And eventually…I’d had enough. 

In the depths of my desperation, I did theonly thing I knew how to do. 

I Googled, “How to get better socially” (and“How do I get a girlfriend?!”) 

This single search, simple though it mayhave been, was the catalyst for a radical personal transformation. 

Because it started my love affair withpodcasts. 

As I dove into the rabbit hole of myiPhone’s podcast app, it led me to The Art of Charm(now The Jordan Harbinger Show), Knowledge for Men, and–most relevant to our discussiontoday–a show called The Kickass Life,hosted by David T.S. Wood. 

And it was on David’s show that I wasfirst introduced to Jim Kwik. 

Before his rise to fame, before hispodcast (which has over 10,000,000 downloads), and before his keynote speechesand crazy projects with the cast of The X-Men…Jim was virtually mentoringfifteen year-old me, helping me overcome my limiting beliefs, eradicate mynegative self-talk, and transform myself by first transforming my brain.

And today, I’m going to give you the fivemost important things I’ve learned from Jim after following him for more thanseven years. 

With the lessons I’m about to share with you,you’ll be able to rewire and optimize your brain for more focus, performance,and success. 

Let’s dive in.

1. Consume a Brain Healthy Diet

According to Jim, the most basic buildingblock of mental performance and age defying brain health is, quite unsurprisingly,the fuel with which you are feeding your brain. 

Namely, food. 

Now, I’m sure you’ve heard many an expertpronounce from their pulpit that, “Your diet is the mostimportant factor for longevity, performance, and overall well being.” But fewpeople fully understand the gravity of that statement. 

Recent studies have found that roughly 90%of your body’s serotonin–the neurochemical related to mood, social behavior,appetite, and sex drive–is produced in the gut, not thebrain.

Other studies have linked Type IIIallergic reactions (nonfatal reactions with delayed symptoms) with autism,ADHD, depression, and more. 

Still other studieshave shown that diets high in processed foods and low in neuroprotective foods(I’ll get to those in a minute) are linked impaired memory, slower learning,brain fog, lowered emotional control, anxiety, and depression. 

So it’s pretty clear that you dietmatters…A lot. 

But the question still remains: 

What on earth are you supposedto eat for optimal brain health and mental performance? 

Due to our species’ high level of bioindividuality, there’s no one clear answer to this question. 

But there are afew guidelines. 

Namely: 

  • Eliminate or reduce processed foods and refined sugars: They lead to braininflammation, wreak havoc on your gut, and cause all sorts of other nastyproblems. If it didn’t grow in the ground or have a pulse…Don’t eat it.

  • Eat more fat: Despite what you heard in grade school,fat doesn’t make you fat and it doesn’t make you dumb. It’s one of the mostessential macronutrients for brain health and you should try your best toconsume it any time you can. Eat plenty of olive oil, coconut oil, avocados,grilled fish, and nuts.

  • Eat Neuroprotective Foods: Certain foods contain compoundswith neuroprotective effects–that is foods that guard your brain from damageand help repair oxidative stress. Things like blueberries, dark chocolate(yay!), coffee, pumpkin seeds, and turmeric are all important additions to abrain healthy diet.

  • Cut out Alcohol and Sugary Drinks: Sorry. But thatafternoon soda and daily nightcap aren’t just damaging your waistline…They’realso destroying your brain. Cut them out or at the least, cut back.

I would also encourage you to invest in acomprehensive set of blood and gut panels to identify any micronutrientdeficiencies or food allergies that may be present in your body. For those ofyou who are already eating a healthy diet but still lackingthe mental power and focus you crave, the solution could be as simple asclicking “Add to Cart” on a few bottles of GABA and magnesium. 

2. Spray Insecticide on theA.N.T.s

Listen. Sometimes, no matter how hard wetry or how positive we try to think…Life can just plain suck. Businessesimplode. Spouses leave. Children do stupid things. The IRS asks for more thanyou set aside. 

Sh…stuff happens. 

And oftentimes, when genuine tragedy andfailure occurs, the best thing we can do for our own sanity is to experiencethe melancholy, the heartbreak, the anger, and the frustration. Despite whatmany a guru might tell you, negative emotions are just as effective at fuelingchange and growth as positive ones. 

“In life, you need either inspiration ordesperation” 

Tony Robbins

However, many of us (myself most certainlyincluded) allow an unnecessary and unnatural form of negativity to rule ourlives. 

Specifically, we succumb to A.N.T.sor Automatic Negative Thoughts, the health of ourbrains and quality of our mental performance can plummet. 

A.N.T.s are, as the name implies, areautomatic patterns of thought that have a negative impact on the physical and mentalhealth of an individual. 

Things like: 

  • I never do anything right.

  • This will never work.

  • I always mess things up.

  • I’m bad at [insert specific skill]

  • I’ll never make this work

Are all examples of ANTs. 

While it should be pretty obvious thatthese negative mental loops serve neither yourself nor the world, the damagethey can cause is much more severe than most people might imagine. 

The thoughts you have, both positive andnegative, have a chemical and physiological effect on your brain. 

And if you regularly entertain morenegative thoughts than positive ones, it can lead to: 

  • Slowed production of BDNF (brain derived nootropic factor)

  • Reduction in dopamine and serotonin levels

  • Shrinking of your brain size and the enlargement of your amygdala(the fear center of your brain).

  • And accelerated brain aging.

Negativity is, quite literally, killingyour brain. 

So what can you do about it? 

Here are a few strategies from both Jimand Dr. Daniel Amen, Founder of Amen Clinics and the Nation’s foremost brain healthexpert: 

  • Write them down: Get them out of your head and onto paper.Whenever you find yourself stuck in a negative mental loop, simply acknowledgehow you feel without judgement and write down the thought. After a few weeks,you’ll likely notice that almost all of your ANTs are nestled under theumbrella of 2-3 specific negative loops.

  • Ask yourself, “Is this true? Does it have to stay true?”: Once you’veidentified the negative thought, ask yourself, “Is this true? And must it staytrue?” For example, if you say, “I always fail at business.” and you haveindeed failed at every business you’ve ever started, asking the question, “Mustit stay true?” will help you set the wheels of your brain moving in a differentdirection where you can solve the problem instead of repeating it.

  • Turn Your ANTS into PETs: With a negative thought identifiedand written down, rewrite that same thought and turn it into a PET or positive,empowering thought. For example, after making a mistake at work, you might think,“I’m no good at this, I’m probably going to get fired,” an obvious ANT. A PETwould be, “I made a mistake, but mistakes happen. I’m going to work throughthis and do what I need to do to improve.”

  • Meditate: Meditation will give you greater awarenessof and control over your emotions, allowing you to end the ANTs as they arise.It takes time before you will see the benefits of this practice, but I promisethey’re worth it.

  • Go on a Negativity Fast: Stop watching the news. Don’t watchdivisive interviews, speeches, or debates. Step away from external negativityand feed yourself only positive and uplifting content until you have a greaterdegree of control over your emotional states.

3. Elevate Your Peer Group

A recent study published by Harvardshowed, empirically, something that self-help experts and your parents havebeen telling you since the time you were a child. 

You become who you surround yourselfwith. 

“You’re the average of the five people youspend time with most.” 

Jim Rohn

Their study found that people whofrequently spent time around overweight individuals were more likely to becomeoverweight. People who spent time around smokers were more likely to becomesmokers. People who spent time with healthy and happy people were more likelyto report feeling happy and healthy. 

The importance of selectively curatinghigh-quality individuals for your social circle can no longer be relegated tothe realm of overused aphorisms and motivational Instagram posts. 

It’s a proven fact. 

When you spend time around unhealthy,toxic, and negative people, you will slowly begin to adopt their patterns andbehaviors. Because not only is negativity toxic to your brain andperformance…studies have shown it’s also contagious. 

Their low-caliber behaviors will grate awayat your mental reserves and slowly but surely degrade the quality of your thinking and the performance of your mind.Negative thoughts will become more prevalent (and more persistent) and you willstruggle to break free from the level of thinking to which your peer group haslowered you. 

Luckily, the solution is simple. 

Excise negative people from your life likea disease. 

This is not to say you should burn bridgesor sever ties with friends who have been there for you during your darker times. 

Rather that you must identify theindividuals in your life who drain you energy and mental resources withoutoffering anything in return and cut them out of yourlife. 

If the negative individuals in questionhappen to be family? Then limit your contact with them. And when you do seethem, refuse to stoop to their level. Challenge them torise to your level of ambition, thinking, and refuse to engage in theirnegativity. 

Guard your social circle with the sameintensity you (should) guard your time and financial resources. 

Because it’s just as important for yourmental performance, brain health, and success–if not more so.

4. Pursue Bewilderment toFoster Curiosity   

There are four words in the Englishlanguage, innocuous though they may seem, that spell the death of your growth,performance, and yes, the health of your brain. 

I already know that. 

They say that with age comes experienceand with experience wisdom. But often times, the reality is that with age comesexperience and with experience comes stubbornness. 

We do things our way because that’s how we’ve always doneit–and it hasn’t killed us (yet).

But worse than stubbornness is the boredomthat often comes with age. 

Years of ‘the same ‘ol thing’ wear down onour psyche and lead to complacency. We shop at the same stores, go to the samerestaurants, read books from the same authors, and do the same things. 

To improve your mental performance andbuild a brain that defies age, growing and improving until your final days, youmust abandon routine and pursue bewilderment. 

Study after study has shown that yourbrain can quite literally create new brain cells (neurogenesis) and alterexisting neural pathways (neuroplasticity). 

So you can and should teach an old dog new tricks. 

According to Kwik, one of the most important things you can do for thehealth of your brain (and life) is to foster a sense of bewilderment andcuriosity about the world around you. 

Constantly learn and try new things. Readbooks from authors with whom you are unfamiliar, learn new languages, pick up anew instrument, learn to juggle, learn to SCUBA, travel to new countries… 

Give your brain the novelty it craves andit will become smarter, faster, and better in every way. 

5.Do That Which Makes You ComeAlive  

Of the many insights I’ve gleaned fromJim’s interviews, courses, and presentations over the few months I’ve followedhim, the most profound is this:

“Most of the time we feel tirednot because we’ve done too much but because we’ve done too little of what makesus come alive.”

Jim Kwik

If you’re feeling burned out, tired,exhausted, and unmotivated, I can all but promise you it isn’t because you’re working too many hours ordoing too much (this is a symptom, rarelythe underlying cause). 

It’s because you aren’t doing enough ofthe things that fill your soul and make you feel alive. 

Maybe you made a business decision thatled to more income but gave you less timeto focus on the things you enjoy most. 

Maybe you’ve been grinding so hard at work that you haven’t made time topaint, or play the guitar, or write your novel, or do any of the other thingsyou enjoy. 

Maybe you’ve taken on a “Shadow Career” asSteven Pressfield calls it, doing work that pays the bills while refusing yourtrue calling. 

Whatever the case…Do more of the things that make you come alive. 

Make time for your hobbies and passions.Architect a business that allows you to pursue your highest calling while making money. Live your life in a way whereyou plan your weeks and engineer your days for maximum aliveness. 

Schedule adventures into every week andmake sure to spend at least 30-minutes a day doing something you love. 

If you will do this, not only will youhave a healthier brain…You’ll have a more wholesome and fulfilling life. 

Life is for the living. So do what makesyou come alive.