It's All in a Word

Watching Michelle Obama's speech at the start of Democratic National Convention on Monday night really got me thinking. In particular, there was one very loaded word that she used over and over. Check out today's rant to find out what it was and to learn why politicians -- and investors -- would all do well to cut it out of their vocabulary.

And don't forget to catch me on "America's Nightly Scoreboard" tonight on the Fox Business Network from 7 p.m. to 8 p.m. Eastern. Yes, this is a shameless plug. But, really, watch the show, would ya?

Cheers!

Toby

Make Big Bucks on Low-Cost Trades

We've scored 50% profits on an options trade after only one day! Will you be on board to bank the next profit for yourself?

No matter how the market performs, there's always a winning trade out there -- if you know where to look.

Since June, Big Money Options subscribers have captured an average of 105% profits per trade on 12 out of 14 trades!

Accept your 90-day, 100% risk-free trial subscription today!

The Most Dangerous Word in Politics

We usually stay away from politics here at ChangeWave. Every so often though, seismic regulatory shifts come from Washington, Sacramento or even Albany that command our attention because they have the potential to generate massive waves of spending that create winners and losers.

And with the Democratic and Republican conventions back-to-back this week and next, I have politics on my mind.

There's one thing I can't get past from the inspirational speech Michelle Obama delivered at the Democratic National Convention's kickoff on Monday night.

The item in question is a word -- "should."

To me, "should" is one of the most powerful words in the English language. It implies that there exists certain things that ought to be done, or a certain way things are supposed to be. And, especially in the case of politicians, it is used to imply that there is one right way to live one's life, run one's country or raise one's kids.

I've found that most of my friends and colleagues who call themselves "liberals" or "progressives" use the word "should" a lot. And I heard it used frequently in Mrs. Obama's speech.

The 'Should' Factor

When used correctly, the word is meant to give a recommendation or advice.

* "If you go to Florence, then you should go to the Trattitoria Sustancia for dinner."

* "If you want to drive the ball farther, you should grip the club softer."

But politicians don't tend to use the word for advisory purposes. Rather, they use it as a declarative verb.

* "We should have universal healthcare in the United States."

* "There shouldn't be such a big difference between what a Fortune 500 CEO makes and what a janitor is paid."

In my opinion, there is a big difference between the belief that "the United States can't afford not to have universal healthcare," and the declaration that "healthcare should be a right of all U.S. citizens."

The difference is that "should" implies there is an infallible rulebook of unquestionable logic that exists concerning all government, economic and personal endeavors. It implies that there is one right way and, therefore, that every other way is wrong.

When a politician uses this word, he or she is telling the citizens of this great land that there is a specific way we ought to live our lives or specific things we ought to believe. And, furthermore, that those who disagree don't understand how best to live their lives.

Well, with all due respect to Mrs. Obama, we already have a rulebook in America -- it's called the Constitution. Our predecessors crossed oceans, risked their lives, died and voted for this set of rules. And our Founding Fathers didn't pepper it with a bunch of "shoulds."

So, my advice to all politicians is to quit using the word altogether and instead try saying something like, "My vision for America is …"

We are all eager to learn the vision a future leader has for the United States, but we are thinking citizens who choose our leaders and we want to match their opinions against our own opinions of which values and strategies should prevail.

But we don't need them, or anyone else, to tell us how we should be living our lives.

Lose the Word

Since investing, not politics, is my thing, I'll share one other observation.

I find many investors have a preordained concept of how the stock market should behave.

And when I hear the word "should" used in a question, I know that the person asking it is approaching investing with a closed mind and a set of rules they believe to be absolute.

I want to tell you that there are no absolutes in investing -- except maybe that whenever you think you've got it all figured out, you don't, and that things are never as good or as bad as you think they are.

"Apple should be a $225 stock" is an opinion.

"Apple should be trading better than it is" is a dogmatic wish.

In investing, as in politics, we'd all benefit if we lost the "should."

Toby

P.S. Tune in to watch me host "America's Nightly Scoreboard" tonight on the Fox Business Network from 7 p.m. to 8 p.m. Eastern. It will be my first time anchoring the show, and I guarantee you won't want to miss it! Use their station finder to get a list of cable and satellite providers and channel numbers for your area.

When the Market Drops, We Celebrate!

When the market tanks, Michael Shulman's ChangeWave Shorts subscribers have a great day.

By owning put options on underperforming names, a miserable market only accelerates the underlying stocks' decline ... and pumps up put option profits accordingly! The farther stocks fall, the more you profit!

Learn more and accept a free trial subscription to ChangeWave Shorts today!

Watch 'Bulls & Bears' on Fox News

Be sure to tune in to Fox News Channel this weekend and join Toby and the crew on "Bulls & Bears" for their weekly market roundtable as they kick off the Fox News Channel business block on Saturday, Aug. 30, at 10 a.m. Eastern. ("Bulls & Bears" replays at 4 p.m. Eastern, Sunday, Aug. 31, and 4 a.m. Eastern, Monday, Sept. 1.) Or you can catch the show Saturday evenings at 6 p.m. Eastern on the Fox Business Network.

Check your local cable listings or satellite guide to find the Fox News Channel location and times for your area. NOTE: These shows are NOT on your local Fox network station. They are on Fox News Channel on your cable or satellite system (Channel 360 on DirecTV, Channel 205 on Dish Network). Keep in mind that these schedules are subject to change, and the Fox News Channel business block and other programming may be pre-empted for breaking news events.

Professional Options Advice for Free!

Smart investors know that you can make more money with options while taking less risk, and they turn to OptionsZone Insider for trading ideas and advice.

Every Monday they learn strategies they can use to capture profits right away. This is advice straight from the pros!

Learn more and sign up for OptionsZone Insider today.

Wine Find: Spice Up Your Labor Day BBQ

If you're looking for a wine to serve at your Labor Day barbecue, try the 2006 Vinos Sin-Ley G3 Caliu from the Terra Alta region of Catalonia, Spain.

This red wine has a big berry flavor that meshes fabulously with tangy dishes.

Best of all, you can pick up a bottle for around $10.

So, raise a glass to a great holiday weekend!

To share your favorite wine or food experience, e-mail me through the form at: www.changewave.com.