May 22, 2014
**********Go to “Core Portfolio” for current holdings.**********
We went from cold to hot virtually overnight here in the Midwest and we can finally spend time outdoors–and more time away from staring at financial screens. I don’t plan on buying any investments but I am looking at a new $500 bike to replace the current model which probably has a million miles on it. When you reach a “certain age” you have to work at keeping the pounds off.
The financial markets are stalling out and there is growing evidence that we may heading into a correction. This is especially relevant in that the May thru October time frame is historically weak. (my reason for not buying any new positions)
BUT the long term trend is positive and we should see continued upward bias after any potential correction. So what to do NOW? Do you sell everything and hide under the bed? Go to the beach? (my preference) Or just sit it out?
If you can stand the “temporary” pain during any potential correction I suggest you just wait and watch while you continue earning the dividends. If you are nervous, enter some Stop Orders that will automatically sell the position if it drops….but I would NOT just sell anything right now.
Also remember that this Administration will do anything to support the markets in the face of the upcoming elections. Don’t be shocked if they come out with some announcement that drives the markets Higher.
Bottom line: From my experience it is usually better to wait out the storm. Keep your investments for now…at the same time watching for a sell signal.
Having said all that, we will eventually (probably years away) see a market collapse if current problems don’t get addressed.
-Massive money printing.
-Massive money borrowing. $17 TRILLION and counting.
-Lousy GDP growth.
-Tiny job growth,…..part time and low paying jobs.
Recommended Book: AFTERSHOCK Revised and Updated Third Edition. David Wiedemer. This is an absolute must read. I recommended the earlier editions on numerous occasions, and you should get this newest version. This is the best financial book available that tells you what is REALLY going on. 978-1-118-37562-4