To What Extent are the Stock Markets Overvalued - Free Essay Example

Sample details Pages: 9 Words: 2794 Downloads: 6 Date added: 2017/06/26 Category Economics Essay Type Analytical essay Did you like this example? Introduction Stock markets are considered to be among the most preferred investment platforms by investors, as they generate a high return on investment (Fong, 2014). There are many underlying reasons for this high return, one of which may be the valuation of the financial commodities traded in the stock market (Chang, 2005). Some financial analysts believe that the stock markets are extremely overvalued (Phoenix, 2014), while there are others who consider them as being slightly overvalued (Rosenberg, 2010). Don’t waste time! Our writers will create an original "To What Extent are the Stock Markets Overvalued?" essay for you Create order Another school of thought has a viewpoint that they are fairly valued (Wolf, 2008); while, some hold the opinion that they are undervalued (Pan, 2009). Due to these differences in viewpoints, it becomes difficult to gauge the extent to which stock markets are overvalued. The reasons for these differences in opinions are the different geographical locations (Tan, Gan and Li, 2010) and the different assumptions made in comparisons (Cheng and Li, 2015). The difference in the methods used for valuation also turns out to be one of the reasons, as every method has its merits and demerits (Khan, 2002). Stock market overvaluation may have severe negative effects including a market crash or increasing organisations agency costs, which need to be considered by managers in organization-wide strategic management (Jensen, 2005). Methods used for Stock Valuation Various methods are used for stock valuation; some of the common ones include Price to Earnings ratio (Stowe et al., 2008), Knowledge Capital Earnings (Ujwary-Gil, 2014) and Dividend Discount Model (Adiya, 2010). The price to earnings ratio is the most common method used to evaluate stock markets, whereby the companys current stock price is compared with the predicted earnings it will yield in future (Stowe et al., 2008). Knowledge Capital Earnings KCE is another method through which a companys intellectual capital can be gauged and interpretation of the extent to which it is overvalued can be given (Ujwary-Gil, 2014). The KCE method, however, is specifically subjective if the analyst is interested in estimating the potential future earnings of an organization (Ujwary-Gil, 2014). The Dividend Discount Model is based on the assumption that the price of a stock at equilibrium will be equal to the sum of all its upcoming dividend yields discounted back to its current value (Ivanov ski, Ivanovska and Narasanov, 2015). One of the shortcomings of this model is with the companys growth estimation, in which the averaged historical rates do not provide an accurate picture, as they ignore the ongoing economic conditions and the changes that take place in the company (Ivanovski, Ivanovska and Narasanov, 2015). Another issue identified by Mishkin, Matthews and Giuliodori (2013) is related to the accuracy of dividends forecasted based on the companys past performance and the predicted future trends of the market; critics cast doubts on the accuracy of these figures, as they are purely based on estimation of analysts and may not be always correct. Stock Markets are Extremely Overvalued Hussman (2014), who is well-known for his accurate insights about the financial markets, comments in one of his speeches that due to their Zero Interest Rate and Quantitative Easing policies, the central banks have driven the stock prices up to twice as high as they are supposed to be. This imparts the stock markets to be overvalued by 100%. While different authors argue that every evaluation metric has its merits and demerits, which makes it difficult to conclude whether stock markets are overvalued when calculated via a specific metric, a Phoenix (2014) report provides evidence of the fact that stock markets are overvalued by almost every metric used for valuation. According to Autore, Boulton and Alves (2015), short interest rates are also a determinant of stock valuation; the lower the short interest rate of the initial stock, the more overvalued the stock will be. An example could be that of the U.S. stock market which is analysed to be overvalued by 55% (Lombardi, 2014), w hile it is estimated to be overvalued by 80% according to another research (Heyes, 2015). Lombardi (2014) identifies it to be overvalued to such an extent due to the increasing presence of bullish stock advisors as compared to bearish advisors, which results in the investors being complacent without being anxious about a huge market sell-off. By evaluating the market through various methods, Tenebrarum (2015) established an opinion that the U.S. stock market is valued at its highest peak to date. Additionally, Lombardi (2014) recognises these indicators to be similar to those before the stock market crash in 2007. Hence it may lead us to a prediction that history might repeat itself, as specialists have already expected the forthcoming crash (Heyes, 2015). Reasons behind Extreme Overvaluation Moenning (2014) explains one of the reasons behind stock overvaluation to be investors inclination to fall in the trap of investing based on stock valuation, instead of business cycles. He further elaborates that due to the investors inclination towards highly valued stocks, companies raise their stock prices to make their stock seem attractive to be preferred by investors over that of other companies. Qian (2014) identifies a solution to this that if investors are discouraged from merely considering stock valuation while looking for investment options, companies will not have an incentive to undertake systematic mispricing of their stocks, which results in overvaluation. Another reason behind overvaluation of stock market has been suggested by Autore, Boulton and Alves (2015); according to whom the stocks are overvalued to a great extent due to the higher levels of failure to deliver. Three major exchanges report a huge number of failures to deliver in their daily listings appr oximately equal to 10,000 shares or 0.5% of the overall outstanding shares, which further explains the reason behind extreme overvaluation of stock markets (Autore, Boulton and Alves, 2015). Stock Markets are Slightly Overvalued Some analysts estimate the stock markets to be slightly overvalued as compared to what their value should be. Rosenberg (2010) further strengthens this point in his research which revealed that stock markets are overvalued by 35%. A Newstex (2010) report provides little evidence about the market being overvalued by 26%. Specialists from this school of thought believe that stock overvaluation may only result in a temporary disruption in the market, which may be resolved by cautiously reducing the stock prices. Stock Markets are Fairly Valued The ideal situation is the one when stock markets are appropriately valued, which Wolf (2008) identifies as an opportunity. He says that fairly priced stock markets are favoured by the investors and risk-seeking governments, as it is the situation with lesser uncertainty. With an overall market yield of 4%, Paler (2012) recognised the stock markets to be fairly valued, regarding them as a suitable investment platform. For example, Newstex (2015) reported Amazons stock price to be fairly valued at $295 per share as opposed to $380. This is because financial analysts believe that factors such as the potential decline in the annual revenue growth, reduction in operating profit margins due to increasing technology, marketing and other costs, and increased investment in growth strategies, such as international expansion, need to be accounted for when valuing stocks. It can thus be understood that overvalued stocks pose to be a threat for the financial markets because investors lose conf idence, which results in a drop in revenue growth (Akbulut, 2013). The slightly overvalued stock markets may find their easy escape if the decline in the Central Bank rates results in a decrease in the wider interest rate spectrum (Saler, 1998). Stock Markets are undervalued Pan (2009) supports the claim that stock markets are undervalued, along with which he gives the example of the Asian stock market, which is approximately 30% undervalued. One of the reasons he identified for it was the political instability. Another example is provided by Pawsey (2009), whereby he analysed that most of the UK stock market remains undervalued and it has not been so in decades. The reason he identified was that the stocks are undersold as compared to the sales estimation. On one hand, the U.S. stock market is viewed as being extremely overvalued, while on the other, the U.K. stock market is severely undervalued. It can thus be seen that the geographical location plays a great role in the differences of opinion about overvaluation and undervaluation of the stock markets (Tan, Gan and Li, 2010). There are some specific markets which are consistently undervalued for certain periods of time. An example could be the Russian stock market; Putin (2008) found Russian comp anies to be severely undervalued. Caldwells (2015) analysis also depicted that Russian stock market is among the three most undervalued markets globally. The analysis also included predictions that the Russian stocks might go down further, therefore investors need to beware before investing in such markets. Reasons behind Stock Undervaluation One of the reasons behind undervaluation of stock markets is the investors inclination towards highly valued stocks. Although some companies set their stocks at a lower price to make them seem cheaper and more attractive for the investors to buy, they find the investors doing the opposite, i.e. opting for highly valued stocks in anticipation of higher returns (Warner, 2010). Reasons for Different Viewpoints Different Assumptions and Valuation Methodology The different viewpoints mentioned about stock valuation are based on the different assumptions (Cheng and Li, 2015) and different methods used for valuation (Khan, 2002). It also follows that these different methods have their own advantages and disadvantages, which if accounted for, may result in a different perspective. For example, price to earnings ratio is considered to be a worthless tool by some analysts because of its overoptimistic estimates (Tenebrarum, 2015). Taboga (2011) identifies another issue with this ratio, that it is mostly influenced by the fluctuations in earnings due to the business cycle oscillations. Hence he assumes that relying merely on this method may not provide a true picture of the extent to which stock market is overvalued. Implications of Overvaluation Hunter, Kaufman and Pomerleano (2005) explain that extreme overvaluation of the stock market should be taken into consideration and a solution should be devised for it, otherwise there would be higher probability of a crash. Liao (2014) also found a positive relationship between highly overvalued markets and possibility of a crash. He also found a negative relationship between extreme overvaluation and future share price jumps. Jensens (2005) study revealed that the overvaluation of a companys stock gives rise to certain organisational forces which become difficult for the management to handle, damaging the organisations core value either partially or entirely. On one hand, overvalued stock markets pose threats to the financial markets, while on the other, they help in boosting up the aggregate demand and supply, such that this positive effect may potentially be able to subside the negative effect (Cecchetti et al., 2000). Jones and Netter (2012) believe that mispriced stocks pr ove to be a source of encouragement for investors to trade, as a result of which they are reverted back to their reasonable prices. Conclusion The valuation of stock markets has long been an area of concern for financial institutions and analysts. The differences in valuation and the opinions regarding valuation occur because of the differences in the methods used for calculations and making estimates. Each method has its pros and cons and research suggests that one method alone cannot provide a true picture of the degree to which stock markets are overvalued or undervalued. There is evidence about stock markets being extremely overvalued, and there is also an equal amount of research suggesting they are fairly valued and/or undervalued. Considering the differences in methods used and the variation in geographical locations where these researches are conducted, it is difficult to hold a strong opinion about the extent to which stock markets are overvalued or undervalued, because critics against each school of thought have logical reasoning proving the limitations of the valuation method used by the other analysts. It is t herefore necessary for the analysts to use a combination of two or methods for stock valuation, so that the doubts of the critics may be reduced, ensuring transparency in the financial data analysis. References Adiya, B. (2010). Discuss the Main Theories Underlying the Valuation of the Stock. Critically Assess the Role of Fundamental and Technical Analysis in Stock Market Valuation. EC 247 Term Paper, University of Essex. Akbulut, M.E. (2013). Do Overvaluation-driven Stock Acquisitions Really Benefit Acquirer Shareholders? Journal of Financial and Quantitative Analysis, Vol. 48, No. 4, pp. 1025-1055. Autore, D.M., Boulton, T.J., and Alves, M.V. (2015). Failure to Deliver, Short Sale Constraints, and Stock Overvaluation. Financial Review, Vol. 50, No. 2, pp. 143-172. Caldwell, K. (2015). Revealed: The Worlds Cheapest Stock Markets 2015. The Telegraph. 6th June. [Online] Available at: https://www.telegraph.co.uk/finance/personalfinance/investing/11654508/Revealed-The-worlds-cheapest-stock-markets-2015.html Cecchetti, S.G., Genberg, H., Lipsky, J., Wadhwani, S. (2000). Asset Prices and Central Bank Policy. Geneva: International Center for Monetary and Banking Studies. Chang, J. (2005). Shares Feature Attractive Valuations. Chemical Market Reporter, Vol. 268, No. 18, pp. 15. Cheng, S., and Li, Z. (2015). The Chinese Stock Market Volume II: Evaluation and Prospects. London: Palgrave Macmillan. Fong, W.M. (2014). The Lottery Mindset: Investors, Gambling and the Stock Market. London: Palgrave Macmillan. Heyes, J.D. (2015). Stock Market is 50% to 80% Overvalued; Experts Warn Historical Crash now Imminent. Natural News. 17th September. [Online] Available at: https://www.naturalnews.com/051202_economic_predictions_stock_market_crash_James_Dale_Davidson.html Hunter, W.C., Kaufman, G.G., and Pomerleano, M. (2005). Asset Price Bubbles: The Implications for Monetary, Regulatory and International Policies. London: MIT Press Hussman, J. (2014). John Hussman: The Stock Market is overvalued by 100%. Phils Stock World. Newstex. Retrieved from ProQuest. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/1621993284/fulltext?accountid=15977 Ivanovski, Z., Ivanovska, N., and Narasanov, Z. (2015). Application of Dividend Discount Model Valuation at Macedonian Stock-Exchange. UTMS Journal of Economics, Vol. 6, No. 1, pp. 147-154. Jensen, M.C. (2005). Agency Costs of Overvalued Equity. Financial Management, Vol. 34, No. 1, pp. 5-19. Jones, S.L., and Netter, J.M. (2012). Efficient Capital Markets. [Online] Available at: https://www.econlib.org/library/Enc/EfficientCapitalMarkets.html Khan, A. (2002). 501 Stock Market Tips and Guidelines. USA: Writers Club Press. Liao, Q. (2014). Overvaluation and Stock Price Crashes: The Effects of Earnings Management. PhD Dissertation, University of Texas. Lombardi, M. (2014). EconMatters: U.S. Stock Market Overvalued by 55%? Newstex Global Business Blogs. Newstex. Retrieved from: ProQuest. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/1641263053?pq-origsite=summon Mishkin, F.S., Matthews, K., and Giuliodori, M. (2013). The Economics of Money, Banking and Financial Markets. European Edition. Barcelona: Pearson Education Limited. Moenning, D. (2014). EconMatters: How Much are Stocks Overvalued? Newstex Global Business Blogs. Newstex. Retrieved from ProQuest. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/1639491656?pq-origsite=summon Newstex (2010). Is the Stock Market 26% Overvalued? Phils Stock World. Retrieved from: ProQuest. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/189661843?pq-origsite=summon Paler, N. (2012). Fidelitys Roberts: Equity Markets Fair to Slightly Overvalued but better than Cash. Investment Week. 26th March. pp. 28. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/963553204?pq-origsite=summon Pan, A. (2009). Asian Stock Markets Seen almost 30% Undervalued. Asiamoney. Retrieved from: ProQuest. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/206616845?pq-origsite=summon Pawsey, D. (2009). UK Stocks are Significantly Undervalued. Financial Advisor. Retrieved from ProQuest. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/195110261?pq-origsite=summon Phoenix Capital Research (2014). Stocks Are Severely Overvalued By Almost Every Predictive Metric. Phils Stock World. Newstex. Retrieved from: ProQuest. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/1546016887?pq-origsite=summon Putin (2008). Putin Says Russian Stock Market Undervalued. Daily News Bulletin. Retrieved from: ProQuest. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/456062919?pq-origsite=summon Qian, X. (2014). Small Investor Sentiment, Differences of Opinion and Stock Overvaluation. Journal of Financial Markets, Vol. 19, No. 1, pp. 219-246. Rosenberg, D. (2010). Rosenberg: Stocks 35% Overvalued. Phils Stock World. Newstex. Retrieved from: ProQuest. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/189666557?pq-origsite=summon Saler, T. (1998). Fed could Rescue Slightly Overvalued Large-cap Stocks. Milwaukee Journal Sentinel. Retrieved from: ProQuest. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/260844752?pq-origsite=summon Stowe, J.D., Robinson, T.R., Pinto, J.E., McLeavey, T.W. (2008). Equity Asset Valuation Workbook. New Jersey: John Wiley Sons, Inc. Taboga, M. (2011). Under/Over-Valuation of the Stock Market and Cyclically Adjusted Earnings. International Finance, Vol. 14, No. 1, pp. 135-164. Tan, Z.H., Gan, C., and Li, Z. (2010). An Empirical Analysis of the Chinese Stock Market: Overvalued/Undervalued. International Journal of Applied Economics Econometrics, Vol. 18, No. 1, pp. 44-74. Tenebrarum, P. (2015). EconMatters: The U.S. Stock Market is at its Most Overvalued in History. Newstex Global Business Blogs. Newstex. Retrieved from: ProQuest. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/1656537926?pq-origsite=summon Ujwary-Gil, A. (2014). Knowledge Capital Earnings of a Company Listed on Warsaw Stock Exchange. European Conference on Knowledge Management. Kidmore: Academic Conferences International Limited. Warner, J. (2010). Why Stock Markets are still Undervalued? The Daily Telegraph. 19th January, pp. 4. [Online] Available at: https://search.proquest.com.gcu.idm.oclc.org/docview/321739234?pq-origsite=summon Wolf, M. (2008). Why Fairly Valued Stock Markets are an Opportunity? Financial Times. 26th November, pp. 13.

The Porter s Five Forces - 1162 Words

The Porter’s five forces is a competitive position analysis and business strategy format created by Michael Porter in 1979. The premise behind the format is to provide them with five forces that shape every industry. Mr. Porter s theory is that if a company analyzed the information received from reviewing the five forces, the company would be able to compete in a higher fashion against its competitions. Following the five forces would allow a firm to determine the type of market or industry it is operating in. Each of the five works as an individual factor in the microenvironment, but one force could not exist without the out force in a stable economy. The five forces are Supplier Power, Buyer Power, Threat of substitutes, the threat of new entrant and Competitive Rivalry. Three forces affected the market horizontally while two affected, it vertically from each side. A review of the movie rental market from the Porter’s five forces. Competition Rivalry is at the center of the Diagram. 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Describe How Two Businesses Are Organised Free Essays

Describe how two businesses are organised (P3) I am going to talk about two organisations and how they operate. The organisations I am going to talk about are McDonalds and Chester Zoo. McDonalds is a fast food restaurant and its purpose is to provide the best and fastest customer service so in this way it will give the organisation a good reputation and help them to make more profit. We will write a custom essay sample on Describe How Two Businesses Are Organised or any similar topic only for you Order Now [pic] This shows how stuff work in McDonalds. If there would be a problem with customers for example, then the assistant manager would take care of this but if there would be something more serious then the business manager will have to take care of it because he is the top head of managing. This also shows how the organisation is organized and how everyone is on the top of the chart and also at the bottom. Chester Zoo is a zoo organisation with loads of attractions for children. Its purpose is to keep their customers happy and also help others because Chester Zoo is also a charity and most of its profit goes to charity to help other people. This is one of the organisation charts for Chester Zoo. This organisation chart shows how the herpetology team work at Chester Zoo. For example the herpetology team manager is on top and  everyone below report to him. For example if there was a problem with something to do with the herpetology keepers then they would report it to the herpetology lead keeper who would then report it to the herpetology team manager. Types of organisational structures There are four types of organisational structures which are: †¢ Functional Geographic †¢ Product †¢ Type of customer Functional – Functional structures arrange departments according to what goes on within each department. An example of this structure would be Sandwell College where the lecturers are in their own departments, the receptionists and secretaries would be in the administration department or office and the library and IT staff would be in support services. Geographic – Geographic structures are mos tly about the size of the organisation and where it operates. This could be where there are teams of people operating in different locations like in different towns, cities or countries, so it would be very difficult to organise the business simply by its functions. By product – By-product organisational structures offer a range of products or services and these can dictate its structure. For example a supermarket could be organised into the following functional areas: †¢ Fruit and veg †¢ Cooked  meats †¢ Tinned goods †¢ Clothing †¢ Frozen goods By type of customer – By type of customer organisational structures have both consumers as customers and also have other businesses as customers. This can be referred to as B2C (business to consumer) and B2B (business to business). Hierarchical structure – A hierarchical structure consists of multiple levels. This means that the chain of command would look like a pyramid with a large base of workers who are supervised by the level above them which continues to the top ranking officer such as the CEO or company president. Flat structure – A flat structure has few levels of management between the executive level and the front-line employees. The purpose of a flat structure is to empower employees by making them a larger part of the decision making process in a business. It is designed to make employees more productive. It also allows for more rapid change and problem resolution as the communication occurs more easily between the upper managers and baseline employees. Matrix structure – A matrix structure is a type of management system in which workers report to more than just one person, effectively having two or more supervisors at the same time. For example professionals with different types of expertise are brought together to work on a project. They report to a number of managers of different projects as well as to a functional supervisor. McDonalds and Chester Zoo both have a hierarchical structure because they have multiple levels and they both have a CEO or company president that everyone reports to. Span of control – Span of control is the number of people that one individual is responsible for in an organisation. The wider the span of control is then the greater the number of whom the individual is responsible. A manager who is responsible for too many people may be so overworked that their staff in turn may not be able to perform their duties effectively. Functional Areas – The functional areas are the specialist areas of activity within an organisation. These include: †¢ Finance †¢ Marketing †¢ Production †¢ Customer service †¢ Sales †¢ Human resources Finance The finance department functions include keeping records of financial activity for example the sales made by the business and providing managers with information that they can use in decision making for example cost of making products. For McDonalds the finance department would have to keep track of how many sales they make per day and what kind of meal or burger makes the most money. For Chester Zoo the finance department would have to do the same which is keeping records of how many sales they make per day and how much profit they make. Marketing – The marketing function is responsible for identifying, anticipating and satisfying customer requirements. The marketing function have to carry out market research to find out which types of customers make up a particular market for example what they want, where they want it, how they like it and at what price. The marketers will have an important say in deciding: †¢ The products the company produces The prices charged †¢ Promotions designed to encourage the customers †¢ Place where  goods are sold For example at McDonalds the marketers would decide on what type of Mcflurrys they would sell to customers and at Chester Zoo the marketers will decide on what price they will sell their tickets for people to come and visit Chester Zoo Production – The production function organises who makes th e goods and how and when they are made. The production manager of a company is responsible for making sure raw materials are processed into finished goods. At McDonalds the production function will have to make sure that the burgers and chips are made in good quality and at Chester Zoo the production team have to make sure that the food they feed to the animals are just right for them to eat. Customer service – Customer service is concerned with looking after customers at all stages of their relationship with a company. They have to provide customers with details about offers, make sure the customers are listened to and valued and attending to customer complaints, providing after sales service such as servicing of goods, spare parts or information about new products. At Chester Zoo the customer service people will have to deal with complaints and will have to tell people who visit about offers they may not know about. Sales – The sales function is responsible for getting customers to buy what the company produces. The sales department works closely with the marketing department. The main responsibility of the sales department is to create orders for goods and services. For example at McDonalds the sales team will have to try and sell as much food as they can to the customers so they can make a profit. At Chester Zoo they will have to do the same thing by selling Chester Zoo merchandise. Human resources – Human resource managers are responsible for all aspects of people management in an organisation. The type of work covered in the human resource function might include a policy-making role, welfare role, supportive role, bargaining and negotiating role, administrative role and educational and development role. At Chester Zoo the human resources will have to do an educational and development role because when they have new employees they will need to train them. This goes for the same at McDonalds, where they will have to train their employees. How to cite Describe How Two Businesses Are Organised, Papers

How to Forget Someone You Love free essay sample

How do we forget someone that has been a part of our lives for a quite some time? We find it hard at times when we actually want to forget them but still cant because theyve been something to us. Some get depressed, and some get stressed out with the things around them some get drunk and put their selves to trouble Just to forget the hurt that they feel. But where do they end up? Some In the Jail for their stupidity, some are stuck In the past and dont know how to get out and move out of the box that they are in, and some still cant stand up tall and sayVive finally moved Well, here are some effective tips for you Step one: Set aside all the things that can make you remember this person! How do you do It? In a big box, you put everything there. We will write a custom essay sample on How to Forget Someone You Love or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Pictures, stuff toys, or whatever this person gave you. After, you can put them away and put In the balcony or somewhere you wont be able to see it for a long period of time. Just be sure you will not go to that place and check everything out. Also, start removing and forgetting all the contact numbers you have connecting to this person.If possible, delete them in your personal accounts too like Backbone, Yahoo! Messenger, MS Live, Keep and all other social sites where you can see his or her updates. Step two: Be strongly Show this person that you can do it without them! Get all the confidence you could before you meet him the second time around after they leave you. Show him/her that its their lost, not yours! Theres going to be a big difference with the way they will treat you. Step three: Get busy! Focus yourself on other things like studies, friends, family and other happy things. Go on a arty with your awesome buddiesHAVE FUN! Drink if its going to ease the pain but remember not to get wasted. Its going to bring back all the pain and let you drag yourself down! Step four: Life must go on! Not Just because this someone special left you, you lose hope with everything. Remember: The most revengeful thing that you can do to the person who left you is to be happy. Put a big smile on your face and tell the world you can do it! Step five: Think of happy thoughts! Never let yourself down with the memories that will melt your heart and cry. Think of the stuffs that cake you happy even if youre all alone.Have yourself a treat at the mall or go on a shopping that will make you happy. Do the things that will make you happy even without accompany of others. NEVER watch romantic movies! Youll Just hurt yourself twice as much as you can remember. Step six: Stand up tall with chin up! Prove the people around you that you survived everything youve been through. When you see this person, walk in front of them with all the confidence you have! If theyll notice you, say Hal or hell for them not to feel that you were very affected with what they id to hurt you. After all that was said here, its still you whos going to decide on what to do. This might help, but everything is still up to you. Its going to be easy and yet, difficult. Just like math, X and Y are there but you still have to calculate it properly to get the answers correctly. Everything worth having is worth waiting. How to Forget Someone You Love By ohyiieeee because theyve been something to us. Some get depressed, and some get stressed to forget the hurt that they feel. But where do they end up?Some in the Jail for their tepidity, some are stuck in the past and dont know how to get out and move out of things that can make you remember this person! How do you do it? In a big box, you can put them away and put in the balcony or somewhere you wont be able to see his or her updates. Step two: Be strong! Show this person that you can do it to be a big difference with the way they will treat you. Step three: Get busy! Focus see this person, walk in front of them with all the confidence you have!