Get Up, Get Out!

[Verse One]
Night is his life, devoid of all light
Haters tellin’ him he won’t win the fight
So give up trying, those living here end up dying
The world ain’t an ally, it’s an enemy without a name
What a terrible life, tell the Lord, place the blame
Sin runs rampant in his neck of the woods
Mothers prostituting, fathers leaving their goods
Brothers of another mother pop a cap at one other
Streets flood with blood, stained for eternity
Nobody cares about the human fraternity

[Bridge]
But when all looked lost, he pushed back
Got away from the torture, got his life on track
Unlike his childhood friends, he’s gettin’ paid legit
Walking freely without chains locked around his feet
He still has his scars, but holds no more wounds
Laughable he thinks are the grudges from the hood

[Chorus]
The colour of your skin might tell me who your friends are
But who ever said you had to act like a stereotype?
Livin' in the hood don't mean you're destined to be a failure
Get up, get out, succeed you just might
People live in disarray, makin' excuses for the status quo
Succumbing to the harsh realities of being an average Joe
Don't let opportunity knock; knock on opportunity's door
Get up, get out, winning's what you live for

[Verse Two]
A blanket of despair ruled over the land
But she was an oasis emanating in the sand
Schools were overcrowded and limited her education
But to some it didn’t matter, few were alive on graduation
No role models around to motivate or admire
Everyone was too busy hatin’ to spark and inspire
Walls graffitied, gangs competed, hope defeated
Pennies the root of strife, a dollar was worth a human life
Meaningless vengeance dictated human thought
A vicious cycle of hatred in the town the world forgot

[Bridge]
Her mother sold her body, but she made a better choice
Took her talents to Idol and showed off her amazing voice
Now she’s making millions selling music full of soul
Her top hit’s a song about a woman with a goal
Her daughter loves her more for being the person she’s become
Escaped the poverty and the ninnies of the New York slum

[Chorus]
The colour of your skin might tell me who your friends are
But who ever said you had to act like a stereotype?
Livin' in the hood don't mean you're destined to be a failure
Get up, get out, succeed you just might
People live in disarray, makin' excuses for the status quo
Succumbing to the harsh realities of being an average Joe
Don't let opportunity knock; knock on opportunity's door
Get up, get out, winning's what you live for

[Verse Three]
This boy walks to school with a chip on his shoulder
Thinks he’s got nothin’ to lose so he carries a pistol in his holster
Rain dripping, addicts sipping, friends rifting
Kids stealing, inmates appealing, rapists feeling
Every corner of the block’s got a dealer or a hooker
The city is in shambles, corruption an invisible odour
Even the mayor’s got a list of crimes he went to jail for
But today, shot in the back was his best friend
He learned it the hard way, his hood life had to end
Mistakes he had made, but please let judgment pass
He’s still a human being who deserves a second chance

[Bridge]
Even in the night sky exists some shining stars
And when the world collapses on you, let Atlas be a crutch, if you must
Take a look in the mirror, love what you see
‘Cause you’re gonna be a someone if you strive thoroughly
An adverse city full of adversity taught you valuable life lessons
Get some grit, have no fear, decide with firm conviction

[Chorus]
The colour of your skin might tell me who your friends are
But who ever said you had to act like a stereotype?
Livin' in the hood don't mean you're destined to be a failure
Get up, get out, succeed you just might
People live in disarray, makin' excuses for the status quo
Succumbing to the harsh realities of being an average Joe
Don't let opportunity knock; knock on opportunity's door
Get up, get out, winning's what you live for
Get up, get out!

(I've written many songs before, although the lyrics are not accompanied with a beat. If you are a professional song writer or singer and want these lyrics, please request them and we can make arrangements).

A Light-Hearted Take on Valentine's Day

Regardless of what your woman says, no matter how much she denies it, even with all the angst against the holiday, she wants to celebrate Valentine's Day. It's just the plain and simple truth.

Every woman wants to feel special and privileged to be a part of your life. On the other hand, no man wants to be perceived as though he's whipped beyond belief. That's where Valentine's Day comes in: a day where you can shower her with love and make her feel like she's your princess. It allows you to do the cheesy things no man would want to get caught dead doing, unless it's on Valentine's Day where you will be praised for taking her on a hot air balloon ride or made her a heart-shaped pizza for dinner.

Don't want to buy her an expensive gift you can't justify spending on during a recession? Fair is fair, so make her something. Women, and even men of the sensitive kind (like me), often prefer the cute and adorable. Flowers, chocolates, bears - yeah they might be generic and overdone, so use them as a complement to your creation. It also adds the benefit of a hedge in case your hand-made craft turns out hideous.

Now I know you naysayers might argue that Valentine's Day is overrated and quite possibly useless or redundant, but is it really? I've heard that saying, "You should celebrate your love for one another every day of the year, not just on Valentine's Day." Yes, yes you should, but unless you shower her everyday with the same added attention and romance most women receive on Valentine's Day, which is rarely the case, you have done little to prove such an argument. I feel confident in refuting your claims that you really do make her feel special every day, or at least once a week.

Think about it in another way. Many of us celebrate our birthdays as a day where we have become older and wiser, but I could argue that we all age everyday and any day could be used as a celebration for that. Christmas is a time for giving and family reunions, but everyday should be a day of giving and a union of family. Thanksgiving is an excuse to stuff our faces with junk and to give thanks to everything we have. I think you know where I'm headed now.

The argument that Valentine's Day is unnecessary is as flawed as those who are opponents of every other major holiday. So instead of trying to pretend you're anti-establishment and have an issue against the globalization and marketing of a non-statutory holiday, just go out and spend $30 on your woman and make her feel awesome. If she's already mad at you for forgetting Valentine's Day or ignoring it, well then, you've already learned the lesson the hard way. Remember, when a woman says "No," it often means yes.

I should note that I do believe that Valentine's Day has become very commercial, along with most major holidays as well, but this article is to discuss the celebration of a relationship and its love, not just about buying her expensive gifts. So take a moment of your busy life and stop. Give her a memory that will outlast every error, every battle, every bad decision you've had and get laid.

Happy belated Valentine's Day.

How a World Crisis Affects Oil Prices

Wednesday last week, my friend sent me a text message asking how to profit from tensions in the Middle East through crude oil. At the time, the unrest had been a few days old, and oil prices had already surged more than 6 per cent in a matter of days. I quickly replied suggesting that he should not bother chasing old news since traders have already priced in the worst case scenario. Four days later, I have been proven correct.

I bring up that story because novice and intermediate traders in North America often try to chase news and buy ETFs or options on crude oil, especially when a major conflict could disrupt oil supply. Many times, these traders will realize they are on the losing end of a gamble for a few good reasons.

You see, there are different types of oil used as a benchmark: Brent Crude Oil and West Texas Intermediate (WTI, also known as Texas light sweet) being the two most followed. Brent, which is less followed in North America, but is the largest classification worldwide, is drilled in the North Sea located between Great Britain and Scandinavia. WTI refers to the oil from the U.S. Midwest and the Gulf Coast. Brent Crude contains more sulfur and is often considered lower quality and less sweet in comparison to WTI. As a result, Brent often trades at a discount to WTI.

However, during major world crises, such as the current Egyptian tensions that may disrupt oil supply in the Suez Canal, Brent's value will reflect risks more so than WTI. The temporary risk premium, that is, increase in price, in Brent occurs because the disruption to oil affects a larger amount of people and businesses in Europe and Africa. A crisis in North America would have little impact on Brent which does not typically get delivered here. It would be like walking into a grocery store on the west side of your town or city and there was only one loaf of bread left. People who shop in the west end would bid up the price of the bread. Shoppers in the east side of the town would see little change in their bread prices because they continue to have an ample supply of it.

Today, Brent trades near $100 a barrel while WTI is trading below $90, a rare anomaly that has only occurred once prior to this year. The premium between Brent and WTI are at historical highs, but should revert back at the end of the crisis.

One other reason WTI is not moving up with Brent is because of excessive supply in the USA. Last week, the stockpiles in Cushing, OK were near record levels suggesting demand for oil in the US is very low or production of WTI is very high. Either the case, these would be bearish cases for the asset on a short-term basis.

When trying to make money on speculative trading, it is very important to fully understand how a commodity or asset would move. When purchasing an ETF on a commodity or asset, find out what the asset is tracking as well. Last week, USO-NY and HOU-TSX saw significant volume on the news, but these track the price of West Texas and not Brent. Both stocks are down about 8 per cent since with little volume following. This suggests that buyers last week are still in their positions holding onto losses.

And to answer your question, no, I have not seen a retail investment product that tracks Brent in North America.

Egyptian Solidarity Makes Me Appreciate Democracy

Put aside the stereotypes we often reserve for the people of the Middle East: violent and extremist; the civil unrest in Egypt should serve no other purpose than as an inspiration and a validation that liberty is a cause many will die for.

What I am witnessing in Egypt will most likely be the largest demonstration against a political ideology in my lifetime. Rich and poor, doctors and teachers, men and women, Christians and Muslim, the people of Egypt have united together to end the regime of Mubarak. This isn't just about dethroning the president and sending him into exile; it's a stand for equality. It could very well be as big as the Womens' Rights and Black movements so infamous in American history. Symbols and voices of hope have not yet emerged from Egypt which commonly accompany massive geopolitical shifts either, but I hope the lack of one does not hinder the chances of change.

And we're seeing such change crossing the Arab states. Tunisian leaders have left for exile and news feeds suggest Yemen would be the next state where the government could be toppled by the people. It's a grassroots movement, a revolt against the tyranny. The British of the 16th century would never have dreamed of such an attack on its monarchs.

It takes circumstances like this for Westerners to fully appreciate democracy. Although highly justified, we as Canadians, Americans, and Europeans often criticize our governments for the messes they have created with rhetoric and red-tape, but then we see countries like Tunisia, Egypt, and Yemen where the people live in the shadow of one iron-fist ruler and only dream of "terrible" democratic governments. It showed me that even in a system devoid of liberties and rights, a fear many Americans have voiced concerns about to their own government, the power of change truly does rest on the shoulder's of its citizens.

What we have in Canada are freedoms that we have become accustomed to. It's the same freedom that so many billions of people envy all around - silently because of restrictions on speech, silently because they know no other way, silently because they believe they are alone on the front. But these events in the Arab world have shined a light onto a hidden matter and it is us living in the Western world that must collectively embrace our own governments while supporting those who want the same basic rights we take for granted every day. What good can arguing against democracy and its ideals do for the estimated three hundred that have already died and hundreds more to follow?

The steps that the Egyptians have taken is a giant leap forward for mankind. It is unfortunate that it has become so violent, but for those that sacrifice their lives for such a noble cause, millions will one day be grateful.

ETFs Favoured Over Mutual Funds

In December 2010, it was announced that Exchange Traded Funds (ETFs) hit $1 trillion worldwide. And a recent estimate suggests it will double to $2 trillion at the end of 2012. The paradigm shift from mutual funds to ETFs has been a common trend since the introduction of the Internet. Low-cost trading, financial reports, and free researching tools has allowed investors to become smarter and given them confidence to invest on their own. As a result, mutual funds are slowly becoming obsolete, a dying breed that I have never been a proponent of.

My detest for mutual funds stems from two main talking points: the Management Expense Ratio (MER, fancy for manager's fee) and lowered rate of returns.

The MER of mutual funds are well over two per cent. Canada's largest mutual fund by assets under management (AUM) is the Fidelity Canadian Asset Allocation Series B (click on name for Morningstar report) which charges 2.16 per cent, which is considered low in the industry.

Secondly, their rates of return are often very low. The above mutual fund has earned 5.83 per cent (after MER) over the last decade. The comparing benchmark, the Toronto Stock Exchange, has earned roughly 4 per cent per year over the past decade, excluding dividends. When accounting for dividends, it's return exceeds 6 per cent.

Mutual funds also must make public their asset allocation and top holdings. Those who want to mimic a mutual fund's holdings can easily do it without paying a management fee. And if anyone has ever done enough research on mutual funds, Canadian ones especially, you will notice their top ten holdings are often Canadian banks, telecom stocks, and some mining stocks.

These two main problems are resolved with exchange traded funds. ETFs are investment vehicles that mimic an index, benchmark, commodity, or other asset class. The most heavily traded Canadian ETF is the iShares S&P/TSX 60 Index; it tracks the TSX 60 almost exactly. For those looking for American exposure, the SPDR (pronounced spider) tracks the S&P500, the most diverse basket of stocks in North America.

ETFs also trade on the exchanges and provide better liquidity, that is, the ability to sell it immediately and take the cash. Mutual funds are priced once a day, at the end of the day, which means you do not know how much you are receiving or how many units will be sold.

Because ETFs trade on the exchange, you will endure a commission from your broker, but with competition in Canada so fierce, commissions are very low now, often $10 to $30 or lower. And some companies are now providing free ETF trading for a certain period of time.

The only caveat to ETFs are ones tracking commodity prices. Due to contango (a difference in the price of commodity futures from month to month) you will lose out on the monthly spread when one contract expires or is rolled out. Commodity ETFs are meant for trading and not investing, so please take caution.

But before you go and redeem all your mutual funds for ETFs, remember that most ETFs do NOT allow investment plans. Mutual funds do have one positive characteristic that ETFs do not have, and that is the ability to invest small amounts without fees. Those who have monthly or weekly systematic investment plans into mutual funds will not be able to do the same with ETFs without paying the commissions, which will erode earnings.

If you're a young investor with less than $20,000 and want a good way to expose yourself to the market without stock picking, ETFs may be the way to go, depending on your needs of course. They provide great liquidity, the same diversification as a mutual fund, and low cost management fees, if any.