Canada has Missed the Boat in Asia

Tuesday, May 3, 2011, 6 to 8:30 p.m., First Canadian Place Gallery, 100 King St West, Street Level, Toronto

Featuring:

• • Andrea Mandel-Campbell, Journalist and Author of ‘Why Mexicans Don’t Drink Molson’
• • Jacoline Loewen, Director, Loewen & Partners Inc
• • Dev Srinivasan, Vice President, BMO
• • Gordon Perchthold, Managing Partner, The RFP Company

Are Canadian corporations soft, complacent and overly protected or have the examples of Bombardier, Manulife, and RIM demonstrated that Canada can effectively compete in fast paced, high growth Asia?

Join IAAT’s debate as Andrea Mandel-Campbell – journalist and author of ‘Why Mexicans Don’t Drink Molson’, Jacoline Loewen – Director of Loewen & Partners Inc, Dev Srinivasan – Vice President of BMO, and Gordon Perchthold – Managing Partner of The RFP Company, together with the audience debate the question raised by Dean Kathleen Slaughter’s November 2nd statement in the Global & Mail Newspaper:  “Canada Has Missed The Boat in Asia.”

Canada’s relevance in Asia is a critical issue for Canada’s future economic prosperity and should be a key election issue for Canadians to ponder.

Light snacks will be served. 

Registration:

• • IAAT Supporter*: $20 ($22.60 HST)
• • Renew for or become an IAAT Support and attend this event – for alumni who graduated in 2009 or before: $70 ($79.10 with HST)
• • Renew or become an IAAT Support and attend this event – for alumni who graduated in 2010 or after: $50($56.50 with HST)
• • Ivey Alumni: $40 ($45.20 with HST)
• • Non-Alumni: $50 ($56.50 with HST)

Register for Ivey Debate

Why Changing Living Standards Around the World Measure Inflation

How do you measure inflation? Is the high standard of living enjoyed by the Western world in decline, draining away to the rapidly growing countries of China and India? Larry Cyna, Cymore Fund, wrote a thought provoking analysis of the thesis that wealth and high standard of living is flowing to Asia. Here is a quick excerpt with a link to Cymor Fund blog at the end:

Inflation is not to be measured by traditional metrics, but rather by the changing living standards around the world, and the changing GDP of major country influences around the world – in essence the drop in economic standing of the US and Europe, and the unstoppable move forward by China, then overtaken by India.

Loewen & Partners hosted a event last week in Toronto where Dr. Michael Power of Investec Asset Management gave a presentation. Dr. Power is a noted advisor to Hedge Funds and travels extensively giving presentations internationally to Hedge Fund managers and others. His presentations on current trends and matters of interest are widely followed and respected. He pointed how US debt and changing demographics were inexorably shifting power and influence to China and then to India. Essentially I agreed with his presentation.The Unpredictability of Predictions: My first response to anyone who is a futurist, or who has the ability to spot major trends, is to thank him for the insight. However, I also have a theory that is proven by history. “What we as humans will never master, is to predict with accuracy the future.” Recent events, sometimes described as Black Swan events, are a vivid example. Who could have imagined that government surpluses of a few short years ago in the US, would turn suddenly into massive deficits that everyone is running in fear of? 

The inevitability of the inevitable is flawed: Interest Rates. While in an overall sense, I cannot disagree with the thesis, there is also the effect of interest rates. We currently live in this delusional world where we think that inflation is something that can be controlled by government. Governments have many tools, but the total control of interest rates, continues to elude us. Once the Genie is let out of the bottle, interest rates have a way of running away ahead of all attempts to restrain them. The result is a massive shift of wealth. The speaker felt that this massive shift would inexorably be to the new Eastern economies. However another way to look at the issue, is that the massive accumulated reserves of the new Eastern Economies, would be reduced in value by 20% in a single year, if inflation was 20% for that entire year.

Read Cymor Fund Blog

Are the markets getting frothy again?

It's hard to pick between the bubbles-are-bad and bubbles-are-O.K. camps is that bubbles aren't all alike. The best ones create assets whose value survives the crash. The Apollo program that put people on the moon, only to lose public support in the 1970s, was a "social bubble" in which over-optimism advanced science. Bad bubbles generate worthless assets such as exurban housing subdivisions that are taken over by squatters and mold. Other bubbles don't produce any supply response at all. The only impact of China's new mania for old wine—one bottle went for nearly $233,000 last year—is to transfer wealth to whoever was lucky enough to own the bottles before the Chinese got interested.
When the tech sector gets bubbly, consumers are often the biggest beneficiaries, notes Harvard economist Edward Glaeser. 
Glaeser says:

Because investors fund ideas that help the general public, from wireless communications to solid-state data storage to the Internet. So it was in the 19th century with the railroad boom. Today's speculation in tech is concentrated in social networking. 

The question is whether the new investments will live up to the greatest hits—and productive busts—of Silicon Valley's past.

Are You Growing Your Business to Sell?

Decide if you’re a Lifestyle Business Owner or an entrepreneur.  This distinction matters to Private Equity investors. They have to see the big growth over the next five years.
In the Bootstrapper’s Bible, Seth Godin teaches us that a product focused business owner sells their talents.  While they may have a few employees, they’re doing a job without a boss, but not running a business.  There’s no exit strategy or pot of gold, but they make their own hours and be their own boss.  Examples include layout artists, writers, consultants, film editors, landscapers, architects, translators, and musicians.  Seth writes:

An entrepreneur is trying to build something bigger than themselves.  They take calculated risk and focus on growth.  An entrepreneur is willing to receive little pay, work long hours, and take on great risk in exchange for the freedom to make something big, something that has real market value.

Why Valuations Matter in Tale of 2 Economies - China and USA

In the US, the Obama administration is ploughing a lonely furrow, the only major country in the world to be easing fiscal policy this year, even as the Federal Reserve persists with a scorched earth monetary policy. The President's nod to the hawks in the Republican party, who not unreasonably consider America's deficit to be out of control, could hardly have been more half-hearted – his proposed spending cuts won't get going until the presidential term after next. George Osborne he is not.

On the other side of the world, China faces a completely different set of problems.

Why valuations matter in US and China's tale of two economies - Telegraph

The BRIC countries’ Hainan summit could make the G20 redundant - Telegraph

 The West's political and financial elite is still a long way from adjusting to the fact that economic power is shifting to Asia and the long term implications for our cost of living. Money is flooding to China and India and for those thinking about selling their business, now would be the time to act.

The West’s political and financial elite is still a very long way from grasping the extent to which the global centre of economic gravity is now shifting – and the implications in terms of relative and absolute living standards.

The BRIC countries’ Hainan summit could make the G20 redundant - Telegraph

Which Pitch Would You Choose?

Jacoline Loewen was on BNN, The Pitch, April, 13th and was pleasantly surprised by exciting pitches.
There was a gold nugget of an idea pitched by Ken Seville, Guaranteed Interview, but the business model is not well developed yet.
Guaranteed Interview is for a recruitment website like Monstor.com, but focused on ex-military. What a great marketing vertical.
The company name is also not a catchy brand, and they need some private sector talent to drive growth. Great concept though and every trucking, security, logistics, aerospace company will be bookmarking the site. Ken did a great job presenting. Check it out HERE
Get hold of Ken: : ken.seville@gmail.com

Exempt Market Dealer Association Town Hall: EMDA Events

Kersten Kloss and Ron Lessoway would like to thank everyone for coming out to Peer Diligence's EMDA Town Hall last night.  It was a huge success.We want extend out thanks to Angie Redecopp from Borden Ladner Gervais LLP and Ron Lessoway from MRL Group of Companies.
For those of you who want to see the recorded version, you can see WATCH IT HERE 
The event is at the bottom of the page listed under "Peer Diligence TweetCast".  Click on the "Register For Event". When you register, you will be sent and email with the link to view to information.
We had a lot of non-registered participants last night, so if you know of anyone who showed up who was not registered, can you please get them to sign up for Peer Diligence at www.meetup.com/peerdiligence.  
http://www.refreshedit.com/index.php/live

Canada makes the list of countries with the Most Billionaires

19 Canadian Billionaires seems a paltry number next to the USA's 270, until you look at the top 10 countries with Billionaires.
Canada comes in fourth.
Mexico makes the cut too which shows it's great to be around the top economy in the world, the USA.

Teaching a 'Lean Startup' Strategy

Lean startup executives do not invest in scaling the company until they have achieved product market fit (PMF); that is, the knowledge that they have developed a solution that matches the problem.

Teaching a 'Lean Startup' Strategy — HBS Working Knowledge