Commentary: Educated Investor resists SNIOP (Susceptible to the

About 30 years ago when I was first selling life and health insurance, I enrolled in a sales school that was taught by a man named Lee Dubois.

Mr. Dubois did not teach the course in person, but rather he taught the course via video and audio tapes. If my memory serves me correctly, our insurance agency spent about $10,000 for a series of 10 tapes. Ten thousand dollars, 30 years ago, was quite a sum.

But as far as I am concerned, it was a fantastic course and I still utilize many of his teachings today.

One of his tapes dealt with goal setting. Mr. Dubois, in his southern drawl, made the comment that there was a major mental illness that was sweeping the country and probably could qualify as an epidemic.

Even though Mr. Dubois made that statement over 30 years ago I believe the same illness is still very prevalent in today's world.

Mr. Dubois labeled that sickness with the acronym SNIOP, and he pronounced it in two syllables, sni-op. The acronym stood for SUSCEPTIBLE TO THE NEGATIVE INFLUENCE OF OTHER PEOPLE.

Unfortunately, this exact same observation can be made today. In other words, no medical cure has been found for this illness to date.

Let me give you a general example of this disease. A young ambitious person gets out of college and decides to give commission sales a chance. The individual decides on a career selling life and health insurance. But when he discusses his choice of vocation with his friends, they say, You went to college and now you are going to sell life insurance?

They then go on to claim selling life insurance is far too difficult and most individuals never succeed. As a matter of fact they state only 12 percent survive after the first five years, not good odds at all.

They will also add that you probably will have to work nights and weekends which will interfere with their social life. They even add that you will be rejected by most of your prospects and rejection is hard to take. Then just for good measure they will liken the insurance salesman to the used car salesman.

Talk about negative influence. You are almost defeated before you even get started. Then, once you get started and you are struggling to succeed, your friends will gladly remind you that they told you so. Well this is just one prime example of SNIOP. If you let your friends' negative influence affect you, you will probably fail.

Overcoming SNIOP

How do you overcome SNIOP?

First, you must recognize that most people that make negative comments are judging you by their own abilities and biases. Remember you are not them.

Secondly, make sure you have a well-thought-out plan of action before you tackle any goal and make sure you have the desire to succeed. The above two thoughts are your prescription for curing SNIOP.

As a result of the past three years in the investment arena, SNIOP is raising its ugly head in major proportions.

We all hear the same comments. Our business leaders are corrupt. They are greedy at our expense. The individual investor can't do well because they don't get inside information like the more affluent do. The world is at unrest. Iraq will cause us problems for years to come. The Middle East will never see peace. The dollar is falling as the world is losing confidence in the United States. Deflation is near.

I could go on and on, but obviously my space is limited.

Problems are nothing new to us and our country. Our country has been besieged with economical and political problems ever since July 4, 1776.

We have faced and survived the Civil War, the First and Second World Wars, Korean War, and the Vietnam conflict. We have survived presidential assassinations, Watergate and the Cuban missile crisis.

Our people made it through the Great Depression. Our capitalistic society has fought its way through several recessions. The list of obstacles is endless! Yet today we are the world's strongest country both economically and politically.

Therefore, as an investor it is important not to get caught up in the daily negative influence of the media and the people we associate with. It is important to look at the past and realize life goes on. We are a nation of survivors.

It is imperative to keep in mind that the stock market gives us our best investment results over time. Learn to look for stocks that can actually benefit from troubled times. For example, the Homeland Security Act offers opportunities in the various security protection companies. Two small cap companies you might want to take a look at are Telecommunication Systems Inc. and La Barge Inc.

If the dollar is weaker, look for companies that export a large percentage of their business to foreign countries where their currency has gotten stronger against the dollar. The weaker dollar makes our exports more desirable.

The bottom line: don't be Susceptible to the Negative Influences of Other People. When it comes to investing your dollars, stick to your game plan. Create a positive scenario from the present problems we are faced with and find companies that can actually benefit from the current environment. Obviously this takes work on your part, but anything worthwhile takes effort.

David R. Clogg, ChFC is an account executive at Chapin, Davis. He can be reached at 410-435-3200 or visit his Web site at www.theeducatedinvestor.info.

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