Never a Bad Time to Spend Wisely

By Andrew M. Gordon

Splurging in the middle of a recession is a no-no by Wall Street's lights. They're very good at punishing companies that can't rein in spending when the economy goes into a tailspin (like now). The thinking is, a company can't increase sales in a recession and shouldn't try. They can only hope to cut costs to sustain profits. But this particular piece of conventional wisdom doesn't always hold true. In the recession of 1989 to 1991, many companies that dared to spend aggressively on advertising were amply rewarded...

• Jif peanut butter raised ad support and sales went up 57 percent.

• Kraft salad dressings saw a rise of 70 percent.

• Bud Light and Coors Light spent more than the average on marketing, and ramped up sales by 15 percent. (Overall, beer sales were down 1 percent.)

• With aggressive advertising, Pizza Hut sales rose 61 percent, and Taco Bell's rose 40 percent.

At the same time, companies that didn't spend on advertising suffered the consequences. Mickie D's sales went down about 28 percent. Jell-O, Crisco, Hellmann's, Green Giant, and Doritos suffered sales losses of 26-64 percent.

And there are studies that point to business-to-business companies getting good results from spending that supports sales during a recession. During the recession of 1981-82, companies that spent aggressively on advertising averaged significantly higher sales volume not only during the recession but for the following three years.

Investors looking for companies like these can search for them on Yahoo and other financial sites by "sales" or "revenue" (look for increasing sales in the last three or 12 months). Further research will most likely reveal that the money they spent on advertising also went up.

Search engines have no category that tracks spending in support of sales. But I like doing it "backward." In the end, you don't care why sales go up as long as they do. When you hear so-called experts on TV complaining about a company failing to cut back on costs and/or spending, take it with a grain of salt. Smart strong spending in support of sales can help a company grow - even in the worst of times.

This is a good lesson not only for investors but also for small businesses. It comes down to this: Smart spending is always smart, regardless of what the economy is doing. And stupid spending is always stupid. Companies seemingly get away with it when the economy is good. But when it stalls, stupid spending (think auto companies) catches up to them in a hurry.

A Toast to Your Health

By James B. LaValle

Mulled wine, Champagne, hot toddies... the holidays are here. And many of us are tempted to drink a little more alcohol than we're used to. But what's the story? Should you down that Irish coffee pushed on you by your host? Or pass?

Several studies over the last 10 years have found that moderate drinking actually may have some benefits. For instance, it seems to lower blood sugar and reduce the risk of cardiovascular disease. But before you overindulge, remember that the healthy definition of "moderate" is pretty low. Furthermore, the definition of moderate is different for women than for men.

Moderate drinking means no more than one drink per day for women and two drinks per day for men. One drink translates to 5 ounces of wine, 12 ounces of beer, or 1.5 ounces of hard liquor. Researchers at the Centers for Disease Control and Prevention found that two-thirds of women and half of all men usually drink more than this.

Ladies, be especially cautious! According to the Harvard School of Public Health, one drink per day increases your risk of breast cancer by 10 percent - and two to five drinks per day increases your risk by 40 percent. The good news is that increasing your intake of folate may erase the cancer risk (according to an Australian study in the British Medical Journal). Foods high in folate include beef liver, spinach, great northern beans, asparagus, green peas, broccoli, avocado, lettuce, and turnip greens.

Once you exceed "moderate" (as defined above), your risks start to increase - linked to a 70 percent increased risk for high blood pressure, high triglycerides, and dangerous belly fat, according to the Centers for Disease Control and Prevention.

So for better health this holiday season, try to keep your drinking down to the true definition of moderation. When it comes to alcohol, more is not better!

My Favorite Holiday Tradition: Sharing the Wealth

By Suzanne Richardson, ETR Managing Editor

On the outside, the church looked empty. Inside, it was a buzzing hive of activity.

Men and women formed makeshift assembly lines, popping Barbie dolls and teddy bears and Ninja Turtle pajamas into boxes. Others filled paper sacks with canned yams and string beans, boxes of Stovetop stuffing, and mesh bags full of potatoes. Frozen turkeys were added later.

When I was in high school, my best friend and I always volunteered to help.

Sometimes we would fill those bags and boxes with toys and food. We'd base the contents on lists that described the needs of the families we were "shopping" for. (This family has a baby - don't forget the formula and diapers. This family has a wheat allergy - so leave out the bread. This family has a little boy - make sure you include a monster truck.)

Other times, we'd stand at the door, gathering stuffed animals and board games, underwear and socks, canned cranberry sauce and carrots from red-nosed, bundled-up donors, and then distribute them to the people working inside.

Once filled, the bags and boxes would be handed off to other volunteers, who'd swoop them off to the Salvation Army to be picked up by the families in need.

There's so much to be thankful for around the holidays. And I loved those days of helping to make Christmas a little merrier for people going through a rough time.

It's Fun to Know: The Legend of the Gift-Giving Witch

According to Italian folklore, it's not Santa Claus who gives presents to good little boys and girls. Instead, La Befana, a good witch, travels the country by broomstick on Epiphany Eve (the night before January 6). She fills the stockings of good children with goodies, but leaves only coal for those who have been naughty. (These days, parents put carbone dulce ("sugar charcoal"), a rock candy that looks like coal, in their children's stockings as a joke.)

The story behind the legend is that the Three Wise Men invited La Befana to go with them to visit the newborn Christ child, but she declined because she had housework to do. When she was done she set off to join them, but got lost. Every year, she continues her search on Epiphany Eve, giving presents (or coal) to all the children along the way.

(Source: About.com)

Word to the Wise: Balletomane

A "balletomane" (ba-LET-uh-mane) - derived from "ballet" + "mania" - is an ardent admirer of the ballet.

Example (as used by Jennifer Balderama in a New York Times review of Reading Dance, edited by Robert Gottlieb): "This is, in short, one big brick of dance-nut manna, a loving exhaustive compilation by an editor-balletomane of sterling pedigree."

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These articles appear courtesy of Early to Rise [Issue #2546, 12-23-08], the Internet's most popular health, wealth, and success e-zine. For a complimentary subscription, visit http://www.earlytorise.com/.