Norway’s central bank governor sharpened his warning on rising spending of oil revenue as he drew up scenarios for a 50 percent loss of capital over the next 10 years for the world’s biggest sovereign wealth fund. Governor Oystein Olsen said that the continued rise in oil cash spending, which now accounts for about 20 percent of the budget and 8 percent of gross domestic product, must now be halted to protect the $900 billion fund, the world’s largest sovereign pool of cash. “With a high level of oil revenue spending, there’s a risk of a sharp reduction in the fund’s capital,” Olsen said in the traditional Annual Address in Oslo Thursday. “This could, for example, happen if a global recession triggers both a decline in oil revenue and low or negative returns on the fund’s capital.” This conservative government was forced to dip into this fund for the first-time to cover its budget and protect the economy amid plunging oil prices. The Norway central bank oversees the fund, and has been able to have outflows without selling assets, however there are worst case scenarios. For example, it sees a 1 percent chance of a 50 percent decline over 10 years if spending is kept at the current level of about 3 percent of the fund. If spending is raised to 4 percent that probability rises to about 5 percent. If the fund’s allocation to stocks is boosted to 75 percent from 60 percent, which is currently being discussed, the probabilities rise even further to about 2 percent and 6 percent, respectively. The government had come up with various strategies to replenish the fund such as increasing the stock portion in the fund. In the end, it’s a combination of monetary policy and fiscal spending which has saved Norway’s economy. “It must be recognized, however, that the longer-term challenges facing the Norwegian economy can’t be resolved by spending more oil revenue and keeping interest rates low,” he said in the speech, arguing the Norwegian economy needs more legs to stand on. My concern is the effect of our aging generations globally. As our baby boomers reach the retirement age, I believe there will be a shift in the stock markets, and this shift will affect pension plans, and a lot of the wealth funds globally. The question is how will these countries find ways to continue to increase their gross domestic product? How will the coming change from oil to electric affect established industries? Just as important, how will the changes in the next decade affect you?
The boundaries of social media are endless and the number of people you can reach through it is limitless. The impact social media has on our society can pose many disadvantages, but it presents many advantages for companies. Businesses can build an advantage over their competitors and reach a wider market than ever before by adopting creative ways to brand themselves. Traditional marketing tactics like direct mailing, and telemarketing have all gone downwards. With advancements like ad block technologies, the world’s simply gone numb to conventional strategies businesses used to market their brand. What’s a compelling way to win over your audience in today’s digital world? By creating unique and interesting content, of course. And what epitomizes unique and interesting content more than video? Video is undoubtedly the most effective form of visual content in regards to driving brand engagement. The world’s riding the wave of digital transformation so it’s necessary marketers do so as well. The author suggests five simple tips to integrate video into your social media strategy: create killer content, engage with everyone, live stream, partner with influencers, and move fast. When creating content, it’s important to ensure that it is relevant, that you’re knowledgeable, and credible. Another important factor is being able to inject humor and to keep it lighthearted. If your audience is for a specific target market, then adjust your content as necessary. Listening to your audience and replying is important in showing that you’re paying attention to your audience. Live streaming is an important tool to build your audience too, because it allows your audience to get a personal glimpse behind how you operate, and makes the audience feel a part of the process. Influencer marketing is soaring and this is the optimal time to hop on the bandwagon. Influencers are masters of their craft who have a loyal following, regardless of how big it is. A big segment of successful influencer marketing is achieved through video. Just go on YouTube, the holy land of influencers (and where influencer and brand partnering can easily go unnoticed) and you will see a sea of this marketing strategy. You can significantly increase reach by partnering with the right influencers and are likely to reach more authentic leads and potential customers than traditional marketing. Finally, topics and trends are constantly changing so it is important to stay relevant, however do not sacrifice your good quality content by trying to stay current. Video and social are the cool kids on the block in 2017 and beyond. Leverage your social strategy with the powers of video today. Video is a forceful tool in driving social engagement and interaction. Capitalize on these powerful tools to boost your brand’s value and ultimately your bottom-line. Note: This in-depth guide by MarketPro may help you start your in-house video production initiative for as low as $200. Download free. If you are going to build your digital brand, then it’s important to not try to do it alone. Find a mentor, and learn from the person. If you want to be wise then walk with wise people, and remember a companion with fools will suffer a lot of harm. I often encourage the members of my small group to consider creating a YouTube channel, or some form of social media to get their presence out into the world. If you’re already using social media as a consumer, then why not use it and be a producer. Even if you don’t make a monetary return on your investment, you as an individual have a lifetime of experiences which some one of this world may see as valuable. Your life is your legacy.
Items in italics are direct quotes from the articles above
For this week, I’ve included VETERAN MINDSET – Military Motivation (ft. Jocko Willink) from the RedFrost Motivation YouTube channel.
“If you think you know it all, you’re a fool for sure; real survivors learn wisdom from others.” Proverbs 28:26 MSG
February 22, 2017