U.S. Investing

Behold the Power of Effective Communication  

Note: Today I am proud to present to you a guest editorial by my friend and colleague Heather Wagenhals. An expert in communications, media and public speaking, Heather’s insights into how to effectively communicate are a perfect antidote for our polarized, tribalistic times. If you want to learn how to be a more effective communicator and to effectively persuade others, this article is for you.

“To disagree, one doesn’t have to be disagreeable.”

These words were spoken by my home-state Senator and the 1964 Republican nominee for president, Barry Goldwater. Sadly, today the idea of disagreeing without being disagreeable is barely recognizable in the public square. These days, extremism is the norm. Forget about terms such as “liberal” and “conservative” or “knuckle dragger” and “snowflake.” Those terms are much too docile.

Now, you are a “masker” or an “anti-masker”, a “Karen” or a “virtue-signaling, knee-taking apologist.” Even within my own Republican party, the rhetoric has become toxic. These days you are either a conspiracy-spreading QAnon disciple, or you’re a “RINO,” or a “Republican In Name Only.”

This labeling and name-calling, including those now-infamous tweets sent from the highest political office in the country, coupled with the lack of respect for our fellow human and the vitriol cast at those who disagree have fomented a pernicious intolerance that we haven’t seen in this country in decades. All one needs to do is look at the disgraceful Capitol siege that took place on Jan. 6 to know this.

To me, this heinous behavior demands action, because if you are like me, a liberty-loving American who wants the best for their country, it is incumbent upon you to find and create connections with those who are still reasonable in order to make our country better.

You see, in today’s soundbite-fed, personalized social-media-streaming era, we can get lost in our own custom-tailored, perfectly curated and dreadfully myopic world. By avoiding reality through avoiding other perspectives and engaging in effective dialogue with others, we are only doing ourselves a major disservice.

As my friend and editor of this publication, Jim Woods, has written, “The only solution to bad ideas is good ideas.” Well, my corollary to that is that “The only way to put good ideas out into the world is to effectively communicate those ideas, and especially to those who might initially disagree.”

Sadly, today the art of communication seems to have been lost. In a digital age of texting, email, direct messaging via social media apps and 280-character tweets, we seem to have lost our ability to create meaningful connections and to employ all our communication faculties to effectively persuade others.

Yet, I believe there is still time to reach the undecided.

I am of the opinion that there are those who might ardently disagree with my views but who also are still open-minded enough to be willing to be persuaded. I know this because I have this mindset, and the chief reason why is because I don’t want to be wrong in my thinking. And if I can be persuaded by a strong and effective argument, one with facts, logic and emotional content, then so can others.

Of course, the trick becomes: how does one do this? Here again, I’ll turn to Jim’s insights, as he recently wrote, “In order to persuade others, we first must avoid putting them on the defensive with disrespect and insult. If you can do that, you’re already halfway home.”

One way to avoid putting others on the defensive is to understand what’s happening to them when you do just that. Indeed, knowledge of how we think and process information, and how our biology affects us when we greet and interact with other people, will help us succeed in effectively persuading others.

For example, if I had started this article with racial slurs and misogynistic insults and man-hating statements, you’d probably get angry with me from the outset. In fact, the minute you or someone you feel a kinship with is attacked, your survival instincts kick in and you’ll shut down the critical thinking areas of your brain and stop listening.

So, the first thing we must learn to do is avoid “pressing another’s buttons.” If you immediately start hurling labels at others such as “liberal” or “leftist” or “woke progressive,” you aren’t going to be able to unlock the key to persuasion.

Instead, why not just begin a conversation with a sincere attempt to understand why a person thinks the way they do, and what their reasons are for those thoughts? Indeed, sometimes just the simple power of asking questions can be the most effective form of communication and persuasion.

Think of it as the Socratic method, or what’s sometimes referred to as “street epistemology.” The power of asking poignant questions to others, and their own realization that they may hold views without very good reasons, can be a profound tool for initiating change. And you do so without you ever having to pass judgment.

The second thing we can do to help promote better conversations is to assume responsibility for ourselves. In this context, that means understanding that effective communication is 100% your responsibility — not to get your point across, but rather, to elicit the right result. Let me explain.

Have you ever asked anybody to, “meet me halfway” in a negotiation? If two people are involved in communication or negotiation, what do you think the percentage should be? Is it 50/50? Is it 60/40?

The answer is it’s 100% your responsibility because that’s the only person you have control over. Here, it is important to consider that the meaning of a communication is all about the response you elicit. So, if you’re not able to persuade others, it’s you who haven’t communicated effectively.

The next time you approach a discussion of any kind, instead of pushing your ideas onto others and exacting your will, try to show them a path and lead them to a better way of thinking. And instead of pushing, try persuading via sincere interest and curiosity in what they believe in.

Finally, remember that great communication and effective persuasion is not about you. It’s all about the other person. So, it’s not about how fabulous or sophisticated or smart you are, it’s about figuring out the right things to say or the right questions to ask the other person. In other words, force your interlocutor to confront and explain their beliefs. You’ll be surprised how disjointed and how unstable many deeply held beliefs really are.

Once you’ve helped another realize this, the pump is primed for a deeper conversation about what you think, and how you think your ideas can improve things for everyone.

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Wednesdays Mean Wisdom

Did you know that Wednesday means wisdom?

Well, not technically speaking, but Wednesdays do mean a fresh dose of wisdom from some of the greatest thinkers the world has ever known, as those thoughts are profiled each Wednesday on my podcast and lifestyle website, Way of the Renaissance Man.

This week’s wisdom is all about harnessing passion, and who better to remind us of how to do that than American novelist, poet, and one of the pioneers of the Beat Generation, Jack Kerouac.

If you want a little dose of inspiration (and who doesn’t?), then check out the newly published Wednesday Wisdom featured right now at Way of the Renaissance Man.

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Smith on Happiness

“What can be added to the happiness of a man who is in health, out of debt, and has a clear conscience?”

–Adam Smith

The brilliant Scotsman imbued the world with sagacity, and here is just one of his many pithy profundities, this time on one of the most important subjects to us all — happiness. If you want to really be happy, take steps to improve your health, your finances and conscience, as disruptions in these three areas will surely negate your happiness.

Finally, I’m excited to announce that I’ll be speaking at the W3BX conference Oct. 10-13 in Las Vegas. Join some of the biggest names in the industry, including my colleagues Bryan Perry and Jon Johnson, along with our publisher Roger Michalski, to learn more about investing in blockchain, cryptos, NFTs, Metaverse, mining and all things Web 3.

The Web 3 sector is expected to grow from $3.2 billion to $81.5 billion by 2030. The more you know about it, the more potential money you can make from this explosion.

Click here now to learn more about the conference and be sure to enter the code “EAGLE” when you register to save 20%. I’ll see you in Vegas!

Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. Click here to ask Jim.

In the name of the best within us,

Jim Woods

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Intelligence Report, Investing Edge, the Bullseye Stock Trader, and The Deep Woods (formerly the Weekly ETF Report). His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.

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