Clients have been asking very timely questions about the spiraling problem of US government debt – and how that can impact the decisions we make as far as investing is concerned. It is because of situations like this that I apply ‘emotionless’ & ‘soulless’ analytical tools to determine if, and then where, to invest.
Since we cannot control what our illustrious leaders are doing, allow me to pose several questions:
• Are all the same old real world things – like creative destruction, supply and demand, innovation, and trial and error – still happening like they always have?
• Has the US experienced difficult financial times in the past?
• Did the US survive & did people make money during those times?
• Who benefitted – planners or worriers? Which one do you choose to be?
The Boy Scout’s motto is “Be Prepared”, my analytical tools keep me prepared.
When do you want to get started on your financial planning?
I offer modular financial planning in the following areas:
-Net worth & cash flow
-Accumulation
-Retirement planning
-Education funding
-Survivor
-Estate & tax planning
For a complimentary review, call or email me for a questionnaire.
Securities and Investment Advisory services offered through NBC Securities, Inc., Member FINRA and SIPC. Investment products 1) are not FDIC insured, 2) not guaranteed by any bank and 3) may lose value including a possible loss of principal invested. NBC Securities does not provide legal or tax advice. Recipients should consult with their own legal or tax professional prior to making any decision with a legal or tax consequence. This is not an offer to sell or buy any securities products, nor should it be construed as investment advice or investment recommendations.
Tuesday, June 21, 2011
Tuesday, June 7, 2011
Market Flash Back?
Whenever we experience a day with volatility & declining markets the mind quickly flashes back to the days, a few years ago, when banks were being bailed-out at a fraction of their former values and Lehman Bros. was suddenly referred to in the past-tense. Sure, there are negatives with regard to the slowing of the US economy however, I must objectively point out the positives that persist, and among them are the continued strong relative strength of the US equity asset class; it remains ranked #1 while commodities are #2, international is #3, foreign currencies are #4, fixed income is #5 & cash brings up the rear at #6.
We have experienced an exhale from the recent highs in indices such as the S&P 500, but we have not seen a change of trend. It is important to remain objective in the face of days such as these, particularly since recent memories encourage emotion-based decision making over objectivity.
In summary: 75% of stocks in the NYSE are currently above their bullish support lines, and the weakness has certainly not been evenly spread; the Banking sector, for instance, has roughly 50% of its components in negative trends and the Savings & Loan sector is even higher. Meanwhile Gas Utilities still shows 86% above trend, while Chemicals and Oil Service also have percentages in the mid-70s.
Yes, while volatility tests our nerves & resolve and the ‘talking heads’ banter about the current ‘hot topics’, we steadfastly apply a non-emotional and disciplined approach to managing your assets. Looking ahead, some of the recent headwinds, the spike in gasoline prices and disruptions caused by the Japanese earthquake and US tornadoes are likely to fade in the second half of the year.
Securities and Investment Advisory services offered through NBC Securities, Inc., Member FINRA and SIPC. Investment products 1) are not FDIC insured, 2) not guaranteed by any bank and 3) may lose value including a possible loss of principal invested. NBC Securities does not provide legal or tax advice. Recipients should consult with their own legal or tax professional prior to making any decision with a legal or tax consequence. This is not an offer to sell or buy any securities products, nor should it be construed as investment advice or investment recommendations.
We have experienced an exhale from the recent highs in indices such as the S&P 500, but we have not seen a change of trend. It is important to remain objective in the face of days such as these, particularly since recent memories encourage emotion-based decision making over objectivity.
In summary: 75% of stocks in the NYSE are currently above their bullish support lines, and the weakness has certainly not been evenly spread; the Banking sector, for instance, has roughly 50% of its components in negative trends and the Savings & Loan sector is even higher. Meanwhile Gas Utilities still shows 86% above trend, while Chemicals and Oil Service also have percentages in the mid-70s.
Yes, while volatility tests our nerves & resolve and the ‘talking heads’ banter about the current ‘hot topics’, we steadfastly apply a non-emotional and disciplined approach to managing your assets. Looking ahead, some of the recent headwinds, the spike in gasoline prices and disruptions caused by the Japanese earthquake and US tornadoes are likely to fade in the second half of the year.
Securities and Investment Advisory services offered through NBC Securities, Inc., Member FINRA and SIPC. Investment products 1) are not FDIC insured, 2) not guaranteed by any bank and 3) may lose value including a possible loss of principal invested. NBC Securities does not provide legal or tax advice. Recipients should consult with their own legal or tax professional prior to making any decision with a legal or tax consequence. This is not an offer to sell or buy any securities products, nor should it be construed as investment advice or investment recommendations.
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