I had to post this Blog today after reading the MarketWatch article below as it made me so angry!!!!!
This is nothing short of disgraceful advice and typical from commission hunting financial planners. Where is the duty of care here from both parties? Not only are we getting poor advice from a financial planner how unusual, but MarketWatch have agreed to run this article. Capital preservation is the only thing you should be thinking about at the moment if you are long equities. Doubling down on equities in a falling market with these fundamentals is financial suicide.
Take this advice and you may be waiting another seven years for your portfolio to break even!!! Good work MarketWatch keep up the quality financial journalism!!
I will be sending out to all our members a complimentary list of questions for your broker, financial advisor or fund manager to ensure they are giving you the best chance to survive and prosper during this bear market!!
Labels: dax, dow, market signals, trading signals
0 CommentsThe bleeding continues with a wounded bull retreating for short term protection. We did warn you awhile ago that things could get very ugly, that time has arrived!!
Make no mistake the bear is starting an attack on global markets, by the time it has finished, many portfolios will be left decimated, some beyond recovery. Be very careful who you entrust your life savings moving forward as only the experienced managers who can trade both bull and bear markets will survive and prosper during these market declines.
Now is the time to really see how good your broker/advisor is! Be swift in your appraisal as there will be no time to provide him or her with the luxury of a second or third chance.
We will be providing our members and those taking up our free trial with a complimentary list of questions for your broker, financial advisor or fund manager to ensure they are giving you the best chance to survive and prosper during this bear market!!
Our free Article for new Subscribers will be issued on Monday 21st January 2008, titled Survive and prosper during the bear market questions for those who handle your money-
Fundamentally
Here's what the numbers are saying:
Combined write downs and losses in 2007 on Wall Street: $100+ billion
Total cash infusions recently from foreign governments into
Dollar figure of financial stimulus package that Fed Chairman Bernanke considers "reasonable": $150 billion
Possible total dollar amount of subprime losses, according to Chairman Bernanke: Several multiples of $100 billion.
The Dow Industrials and S&P 500 have declined 14% since October the plunge over the past three days is the worst since 2002.
The Fed is now in panic mode, not surprising Chairman Bernanke looks like he is developing a nervous twitch. Trillions of dollars are being declared as bad debt, gone forever. Major Banks (those who arrogantly look down on many from their ivory towers have to declare their losses). the once untouchables are looking more and more like the geniuses at Long Term Capital Management.
Even countries owe bad debt from the exploding credit bubble. The US Government has promised a $140 Billion dollar stimulation plan, a mix of tax rebates for American families and incentives for businesses to provide a shot in the arm to keep a fundamentally strong economy healthy and avert a deep recession all possibly too late!!!
What next for the Fed?
I believe we will see the Fed step up and aggressively cut rates by 50 basis points or possibly more. This will provide a massive rally in the market which will be short lived. Dont get sucked in by the cheap, smoke and mirrors act that would struggle to get a gig at a sleazy night club in Vegas. Our members are too savvy for that!!
This fits in perfectly with our technical view of an approaching short term bottom followed by a rally to 1420-1440 or look at the 20 day EMA as a guide as the S&P500 is rarely more than 50 points away the moving average for too long.
When will all of this happen?
I think we will see a cut next week. So be careful if you are aggressively short as these rallies can be very bruising. They also provide excellent short term opportunities for traders. If you are long stock it may be a good time to lighten your portfolio during the rally!!
If you need convincing of the trouble I will be posting a blog on Tuesday to provide a little more detail of what is potentially in store:
Coming up this week
·Jan 24 8:30 01/19 Initial Claims NA
Jan 24 10:00 Dec Existing Home Sales 5.00M
Jan 24 10:30 01/19 Crude Inventories 4259K
