An investors hell is one where the market is extremely volatile and choppy. Many are predicting this type of market in the next 3-6 months as we have a mixed bag of economic news. Here's how one advisor says to handle it.
1. First, Do not overtrade.
2. When you trade for speculative purposes over the next six months, buy on weakness and sell on strength.
3. Don't let emotions or the news get to you. Don't be a CNBC junkie. Never invest based on the news.
4. Keep the long term in perspective for your core investment positions.
5. (this one is mine) Control your losses. Make sure you have a strategy to protect yourself against downside markets!.
Monday, February 15, 2010
Monday, February 8, 2010
Fear and Trembling
I glad I live in a great country. If any country can overcome what we are facing---WE CAN! I don't want to sound like the sky is falling, but we face enmorous problems.
And most of these problems have been brought by DEBT. Our government is on an unprecedented spending spree that I believe will hold dire consequences for banks, home prices, inflation, bond prices and our future security as a country. Read the articles below to educate yourself.
US Budget Deficit soars to record $1.6 Trillion http://www.cnbc/id/35176678/
The Abyss of Government Spending http://tinyurl.com/yjky5le
Smart Money on the Obama Budget http://tinyurl.com/yhxh9t8
The next bailout/Social Security http://tinyurl.com/yjwz7cg
Banks http://tinyurl.com/ycp3xxx
Yes we can blame Bush..... yes we can blame Obama and his Keynesian philosophy.... yes we can blame politicians who are lining their pockets with treats all around....all we can do now is (1) vote them all out.... (2) get out of debt ourselves and (3) Protect and defend yourself in this market.
And most of these problems have been brought by DEBT. Our government is on an unprecedented spending spree that I believe will hold dire consequences for banks, home prices, inflation, bond prices and our future security as a country. Read the articles below to educate yourself.
US Budget Deficit soars to record $1.6 Trillion http://www.cnbc/id/35176678/
The Abyss of Government Spending http://tinyurl.com/yjky5le
Smart Money on the Obama Budget http://tinyurl.com/yhxh9t8
The next bailout/Social Security http://tinyurl.com/yjwz7cg
Banks http://tinyurl.com/ycp3xxx
Yes we can blame Bush..... yes we can blame Obama and his Keynesian philosophy.... yes we can blame politicians who are lining their pockets with treats all around....all we can do now is (1) vote them all out.... (2) get out of debt ourselves and (3) Protect and defend yourself in this market.
Wednesday, January 20, 2010
My Greenville News Letter to Editor on Bonds
Friday Dec 18, 2009
The current rush to bonds could be a disaster waiting to happen. So far this year, investors have moved 61 times more money into bond mutual bonds than stock mutual funds. Since bond values are tied to interest rates, bond values have no place to go but down. Out-of-control government spending can bring about several negative scenarios for bond values. Interest rates can move higher because foreign investors decide to scale back buying our debt. Also, interest rates can move higher with inflation and the devaluation of the dollar.
Apparently investors aren't aware of the significant risks of loss when investing in long -term bonds (even Treasury bonds). The truth is that bond values can plunge in value just as much as stocks. Most advisers don't tell their clients about this risk.
When I see investors all running int he same direction, a warning needs to be issued! In this "lemmings cycle" I believe many are going to get hammered. Protect and defend yourself!
(note: Jan 20, 2010; I'm still sticking with this prediction....though it will not be in the first 6 months of this year. Realize like all investment advisors I don't have a crystal ball. This is my opinion)
The current rush to bonds could be a disaster waiting to happen. So far this year, investors have moved 61 times more money into bond mutual bonds than stock mutual funds. Since bond values are tied to interest rates, bond values have no place to go but down. Out-of-control government spending can bring about several negative scenarios for bond values. Interest rates can move higher because foreign investors decide to scale back buying our debt. Also, interest rates can move higher with inflation and the devaluation of the dollar.
Apparently investors aren't aware of the significant risks of loss when investing in long -term bonds (even Treasury bonds). The truth is that bond values can plunge in value just as much as stocks. Most advisers don't tell their clients about this risk.
When I see investors all running int he same direction, a warning needs to be issued! In this "lemmings cycle" I believe many are going to get hammered. Protect and defend yourself!
(note: Jan 20, 2010; I'm still sticking with this prediction....though it will not be in the first 6 months of this year. Realize like all investment advisors I don't have a crystal ball. This is my opinion)
Wednesday, December 2, 2009
IT COULD HAPPEN AGAIN PART 1
Derivatives are debts and bets of all shapes and sizes, esp. on interest rates, bonds, mortgage-backed securities, and other fixed instruments. They were the epicenter of the financial earthquake that shook the world last year. They triggered the demise of Bear Stearns, Lehman Brothers, AIG and others. And they're still causing aftershocks as evidenced by Dubai last week.
So you would think that steps would have been taken to reduce their threat to the US banking system. No way....Despite a brief reduction in derivatives outstanding in last year's 3rd quarter, US commercial banks now hold an eye popping 203.5 TRILLION in derivatives, a new all time high.
A whopping 97% of all US bank held derivatives are concentrated in the hands of just FIVE institutions: JPMorgan Chase, Goldman Sachs, Bank of America, Citibank and Wells Fargo.
Globally, the monster is 3 times larger than the 203.5 TRILLION held by US banks.
So you would think that steps would have been taken to reduce their threat to the US banking system. No way....Despite a brief reduction in derivatives outstanding in last year's 3rd quarter, US commercial banks now hold an eye popping 203.5 TRILLION in derivatives, a new all time high.
A whopping 97% of all US bank held derivatives are concentrated in the hands of just FIVE institutions: JPMorgan Chase, Goldman Sachs, Bank of America, Citibank and Wells Fargo.
Globally, the monster is 3 times larger than the 203.5 TRILLION held by US banks.
Thursday, November 19, 2009
JOBS jobs jobs????
"The government cannot create jobs! Only innovators who create products that have value and utility for consumers can create jobs." Mark Matson
Tuesday, November 10, 2009
Protection without using Annuities
Most brokerages lost over 30% and most in the 40%-50% range since the decline started in 2007. But clients who used the "Sentry" strategy, have already recouped their much smaller declines and are well ahead of where their investments started in 2008. Annuities can offer no loss strategies, but limit some of your upside, whereas this Sentry strategy limits your down side and keeps you fully in the game! What I like about this Sentry strategy is that it can fulfill my investing philosophy of Protect, Grow and Defend and meet the needs of those clients where annuities are not a good fit.
Now nobody knows what's going to happen..... but I believe that 2008 will happen again. Defend yourself!
Now nobody knows what's going to happen..... but I believe that 2008 will happen again. Defend yourself!
Friday, October 30, 2009
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