4/23/2014
By Charles Payne

As republican strategist lick their chops over the prospects of snatching the Senate, many behind the scenes are naturally worried about the propensity of the party to snatch defeat from the jaws of victory. The upcoming midterm elections look like an even greater layup than did the Presidential elections that saw Americans bring back the incumbent with the worst economic performance and poorest polls in history. This is not a new phenomenon; in fact, this is something the GOP has perfected over the years; fumbling the ball, a couple yards from the end zone.

It was about twenty years ago, when I was at a telecommunications event at the request of a company in which I was invested at the time. It was a big deal, held at the famous 21 Club in Manhattan; the keynote speaker was Representative Ed Markey of Massachusetts (now Senator). The central theme of his speech was discontent, he referenced the Million Man March becoming a multimillion men and women march of different races and religions.

At the time, George Bush was riding high in the polls so later that afternoon as everyone was mingling; I asked Markey how the Democrats could beat him and the GOP. He replied with cheer and confidence, “They’ll beat themselves.” Moreover, for couple of decades now, the party has mostly shot itself in the foot. Consequentially, the nation is in the midst of a tug-o-war that could derail our greatness, and relegate future generations to lives of limited achievement, as they pay off mountains of debt and fund the welfare utopia.

No RINOs, No Pandering

I get the idea that some republicans seem more like democrats, or are too concerned with holding onto their own political power, rather than forging real change based on ideology. I am not sure; however, that it is smart for republicans to go completely jihad on themselves ahead of major election cycles. Nevertheless, that is exactly what is going to happen and I think a couple winnable seats will be lost in the aftermath. Then there is the narrative that luring non-GOP voters is akin to pandering- a four- letter word after Mitt Romney lost.

Anyone in sales or investing in the stock market understands it is all a numbers game. Moreover, it is about being smart for the future, and not living for the moment. Stocks that beat earnings estimates and offer weak future guidance, more often than not get smoked. It is actually better to post a subpar earnings result and promise better news in the future. This line of thinking seems lost on several GOP strategists. For them it is about getting out the base, even as that base shrinks in the fast ever- changing demographics.

That might work in the midterm election cycle this year, but what about the next presidential election, and the one after that, and so forth?

Harley Big Tent

Long before the broad market melted down in late 2008, early 2009 shares of Harley- Davidson were in complete free fall. Peaking at $77.00 in November 2006, the stock crashed down to $10.00 by February 2009. Management got the message loud and clear and embarked on a plan to get more Americans to buy their product. The company focused on four groups:

• 18 -to 34-year-olds
• Blacks
• Hispanics
• Women

Harley made real marketing efforts, which resulted in real results. From 2008 to 2012, sales among those four segments of the population have outpaced the core 35- year- old white male 100%. Now, Harley’s street bike is number one for each group, sending market share up dramatically (see sidebar).

If a product is great and people do not know that it is great, they need to be told or sold. Calling them dumb or low-information is actually dumb and lazy. In business, companies cannot afford to draw lines in the sand and dismiss potential customers, although more than a few have tired.

The big question for America is how much longer it can endure policies and rhetoric that attack the very essence of our success. America cannot afford anymore-punitive actions that punish success, raid corporate balance sheets, and makes excuses for failure, while rewarding mediocrity. The American story is amazing and needs to be told and re-told. Sure, it means a stronger push and long-term marketing to non-believers. According to the Harley Davidson’s management, America will look a lot differently by 2050.

• 200 million non-traditional Harley buyers
• 50 million traditional Harley buyers

Translate that into votes, and getting your base to the polls will not mean anything.

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Cherie Payne
Wall Street Strategies

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