Sleep Like a Baby

Sleep like a baby

Photo Credit: Flickr, Sabine75

A sound piece of stock market advice counsels to invest in such a way that you can sleep like a baby, which is exactly how one money manager sleeps – he wakes up every two hours and cries.
 
That anecdote was among the lighter moments from this year’s Orange County Public Company Forum, where more than 200 business leaders heard perspectives on the market from NASDAQ Chief Economist Frank Hatheway, as well as thoughts from a panel that included a vice chairman of Bank of America Merrill Lynch, two public company CEOs, a hedge fund chief investment officer and a partner in the corporate and capital markets practice of an international law firm.
 
First, the economy, according to Dr. Hatheway:  “Things are not so bad, which is very good news, particularly in light of recent fears that the economy was on the precipice of a second recession.”  Hatheway said the “outlook for the U.S. is improving, albeit slowly and unevenly.”  He noted that industrial production has been steadily rising since mid-2009, although he also expects to see interest rates rise modestly and continued weakness in the dollar.
 
And second, the consensus on the stock market was similar to that of the economy:  The entire panel expects the markets to continue to improve during the next 12 months, with predictions that ranged from 3% to 10% growth.  Looking out even further, Cary Thompson, vice chairman of Bank of America Merrill Lynch, said he expects 3-5% annual growth for the next five to seven years.  Thompson also noted that the deals thus far in 2011 have been significantly larger than in 2010.
 
Given the choppiness of the expected growth, you may want to heed another piece of advice:  Don’t watch the stock market every minute of the day, and take it slow and steady for a good night’s sleep.
 
The annual event, now in its 14th year, was sponsored, in part, by PondelWilkinson, along with NASDAQ OMX; Paul Hastings; Bank of America Merrill Lynch; Deloitte; R R Donnelley; Woodruff Sawyer; NIRI Orange County; Mackenzie Partners; and the Forum for Corporate Directors.

 

PondelWilkinson, investor@pondel.com
 
 

Dear Abby: Why do IROs shun social media?

Dear Abby star on the Hollywood Walk of Fame

‘Dear Abby’ Star on the Hollywood Walk of Fame (Photo Credit: wikipedia.com)

Social media have been a part of our lives long before the advent of the Internet.  When our ancestors used ochre, hematite, charcoal and other materials to paint their triumphs and tragedies on cave walls and ceilings, they were engaging in social media.
 
When ancient Egyptians carved elaborate scenes on vases, amulets and pots, they were engaging in social media.
 
And when Pauline Phillips established her “Dear Abby” advice column in 1956, she was engaging in social media.
 
Media have always been social.  The difference today is that the Internet speeds up the dissemination of information, which is often repurposed and then dubbed “social” when it’s tweeted or published on a blog, YouTube or Facebook.   The challenge for professional communicators is harnessing the speed and power of the Internet to communicate effectively.
 
In the investor relations world, many professionals do not believe that today’s social media outlets establish effective lines of communication.  The proof:  84 percent of IROs do not use social media to communicate with their constituents, according to a Thomson Reuters survey due out this week.
 
I understand that IR folks, including myself, are more cautious about embracing social media because so many of the facts and figures we work with require adherence to strict disclosure procedures.   But that shouldn’t stop us from tapping into social media for other purposes, including the reinforcement of messaging and establishing dialogue with customers, shareholders and even employees.
 
As communications professionals, it serves in our best interest to understand how social media can be utilized to communicate more effectively with different audiences.  For example, London-based Derwent Capital runs a hedge fund that relies on Twitter for investment direction. StockTwits, which my colleague, Matt Sheldon, wrote about nearly six months ago, continues to garner more credibility in investor circles.
 
The bottom line is that human civilization has come a long way since relying on granite, clay and, yes, newsprint, to facilitate the flow of information.  Don’t you think it’s about time that IROs do the same?

 

Evan Pondel, epondel@pondel.com