From Dan Peña – "The Money Messiah" and Mentor/Coach for The New Millennium
Dear Friend and Subscriber:
"FLASH : MARKET CRASH"
As some of you may remember, I wrote in January 2001 my thoughts on the market in stock response to a subscriber’s question. I don’t like being correct when billions of all currencies are lost.
These statistics were true prior to yesterday according to, amongst others, CNBC and CNN:
40% dot.com employees gone
240 dot.coms gone
$3.7 trillion in market capitalization (market value) gone
55% of NASDAQ value gone
70% of new enterprises don’t make it in any endeavor and go out of business
$475 billion lost in Oracle and Microsoft market value from highs
VC’s still putting 20% of their money in high tech – pick and axes (or hard assets)
I had already written another newsletter on a different subject, which will be broadcasted in due course. The reason for me changing my topic is obvious: In a down market there are opportunities that are not obvious to the inexperienced. This is the time to get the most experienced sage advice possible. Now is the time for people who have been there and done it! Upmarket advice is any industry is easy! Even many of you made money in the bull market!
Acquisitions during this kind of environment are an excellent way to grow your business. Most people will be afraid to step up to the plate. Financial institutions will be looking for a way out, especially if the management team has a plan based on a down-to-flat market.
Stop what you are doing. Think what you could do – now – vis-a-vis the existing market environment. If you don’t know, find someone that does NOW! This market environment won’t last forever. Take advantage of it now. Times like this don’t happen that often.
Back in the late nineties I used to say, based on my research, while speaking on both sides of the Pacific and the Atlantic, the following:
(1) More than 60% of all money worldwide is managed by people under 30 and about 60% of that money is managed by people under 26 – ergo, they don’t remember the crash of 1987.
(2) The average bull market, since they have been keeping records, lasts about 30 months. Arguably there has been an up market since August 1982. If you don’t believe me, look at a long-term chart of the major stock averages. What does that tell you? Remember, I was saying this in the late 90’s! What about now?
(3) I had other salient remarks reference the cash flow, price earning ratios, and other benchmarks. All indices were selling well above historical averages. Just like early 2000 and even early 2001!
The recent correction occurred after a major correction of last year. When I made remarks such as the above, I was told by the pundits it was a new era. I even read worldwide economies were so sophisticated, i.e., instant communication, etc., bear markets weren’t possible or even necessary anymore! Of course, I laughed and said, let’s wait and see!
Well, here we are on 13 March 2001. (13 is my favorite and lucky number) How do you feel? Smart? Unlucky? Stupid? Uninformed? Anxious? Confident? Or just plain scared?
Irrespective of your feelings, there are tremendous opportunities to grow your business and dreams. Those that take action will look back upon these times favorably. Those that don’t take action will kick yourselves! The pundits are saying stay in cash!
Financial institutions will be looking for experience – not the next young Bill Gates. Remember, this will not last forever. Nothing does!
To your Quantum Leap
PS Notwithstanding my current position on speaking, I’m considering doing a "Market Crash – Mega Opportunities" workshop based on the current needs of newsletter subscribers. Perhaps one in the US and one in the UK.
PPS The Guthrie Group has accomplished some spectacular things already in this new year. And as soon as I can (due to confidentiality, etc.), I’ll write what can be done in a short time frame when absolutely laser beam focused.
PPPS For those of you who haven’t checked, there are now three (instead of one) Tests for Success on my website. The best scores will be eligible for free QLA prizes as well.
PPPPS. Remember as promised, as part of the new QLA Millennium Internet Format, a ‘Free Consultation Program’ was initiated — 01/01/01. Once a quarter, the subscriber who introduces the most new subscribers to the newsletter, will receive one hour’s FREE consultation. THE NEW SUBSCRIBER MUST MENTION YOUR NAME AND SUBSCRIBE VIA MAIL@DANPENA.COM. This one hour consultation [worth $3,000.00], can be used in parts, or all at once over a given year. Alternatively, it can be used to reduce the cost of any QLA seminar. Monthly winners of the introduction program will receive my best-selling book "Your First 100 Million" FREE –a $400.00 value.
Yearly winners will receive a FREE three-day "Executive Castle Seminar" at Guthrie Castle — a $9,000.00 value.In addition, for every "Your First 100 Million" purchased via my website, a 10% discount on the "Executive Castle Seminar" will be given.All the above incentives are exclusively for the benefit of QLA Internet Newsletter subscribers ONLY. Specifics on the QLA Millennium Internet Newsletter program are posted on my website. The race began 01/01/01. Questions can be forwarded to: email@example.com