What Should I Do?

Well, you may be asking yourself the question, "what do I do with my money when the market is so crazy?"

I completely understand, the first thing you need to do is to step back and look at the complete situation. Look at it for what it is as a whole and not at its segmented parts. If you look at the Media, they will focus on the individual bank stocks that are going down or any other single company that's having trouble. They will make you panic and think your best bet is to simply cut your losses and take your money out. What you, as an investor, should be doing right now is capitalizing on this 'panic' and be a buyer of 'clearence' goods. What do I mean?

Well...my wife for example loves to go shopping, imagine that! She just doesn't go out and chase the latest and greatest thing, actually what she does really resembles the market. While everyone is out there chasing the 'hot' things, she is out there looking for the things passed over or the things on 'clearence'. She almost always comes back with bags full of things bought on 'clearence', which cost about the same as just a few of the 'hot' items would have.

This is what I do...
When things are dropping based on the news of other stocks I go 'clearence' shopping with money ready to buy and capitalize on false drops based on panic. Almost always these false drop stocks will be up the next day or within the week, becasuse they fell on panic and not on actual reasons. You can only do this if take your eye off the 'hot' stocks, the ones making the news and look at the big picture, what's being effected by the 'hot' stocks. Persevere through this and keep some cash on hand and ready for the 'clearence' items.

If you want help navigating through this market or have any questions at all about your financial picture, let me know, I would be glad to help.

Keep making Sense...

More Of The Same?

Up 300 down 280, what do we expect of today? LEH searching for funding and supposedly getting denied by a Korean bank, OPEC cutting oil production by 5mil barrels, hurricane Ike still looming, housing report down. LEH is going up in the futures market though, what's going on, purely speculation? Figuring out this market is the secret to wealth right now, especially right now becuase of the big moves back and forth. Right now the best thing to have is cash to capitalize on these big dips and ride them back up. The problem is all of the false bottoms and getting in too soon. The other day when Fannie and Freddie broke no one expected the next day to have another bank go down in flames. How much can this market take, it's a strong market and will work itself out but we do need to establish a bottom soon and reestablish some confidence. We'll see...Keep making Sense out there!

Bubbilin' Crude

What are my intelligent and wonderful readers thoughts on the future price of oil? It's at $102.09 right now with Hurricance Ike looming and production in the gulf already being shut down to prepare for this storm. So, can we safely say now that oil is heading down? Have the speculative traders finally left this commodity? Have they left all commodities for that matter, has anyone looked at where most commodity stocks are at right now. For instance: MOS at $78, X at $95, MON at $100, BTU at $46, and so on. Are we going down just becuase the speculators are on the sidelines? What are your thoughts? Keep making Sense...

Lehman Brothers

Well, Well, Well...

Here we are again finding ourselves on the verge of anohter financial institution going bankrupt, will the bright shining horse of the govt. (sarcasm) come to bail out this over grown fat princess of a bank LEH just like it did her sisters FRE and FNM and BSC? Oh, I hope not! I'm sick of the government intervention here, let the overgrown greedy beasts die and let the market work it out. Every time the government intervenes it only delays the inevitable. The market can and needs to absorb these falls and failures in order for the crisis to be finally over. I'm sick of the government bailing out these companies that got themselves into this trouble in the first place because of wrong decisons made by greed. If an investor makes a wrong decison does the government come to the rescue and bail them out, I think not! Is the government going to bail out Mr. and Mrs. retirement whose retirement income is based off of preferred stock income in FNM of FRE, Nope! Instead they will get hit twice, once with the loss of their retirement becuase of the recent bailout and resulting drop in stock price, and twice with their tax dollars being used to pay for this bailout which will create yet another government institution. Is anyone else sick of this all too familiar cycle....(I won't even mention the airlines here, how many times have they been bailed out?)

Leave your comments please and keep trying to make Sense!