To Bail or Not To Bail?

This is the question that we've all been wrestling with for weeks now and paying the price for as well. Wow, what a few crazy weeks! The market's up, the market's down, then the market's way down, then a bank collapses and all that's been in just one day! We've been inundated with more news in two weeks than we get in years at times! My internet connnection was down for almost a week in the middle of all of this to boot, what's going on? I do love this time however, despite the momentary pain, it's exciting, this is history we are witnessing right before our eyes! I'm loving the exclamation points!! Seriously, everyone, take a break grab a wallstreet journal and just soak in a little bit of what's going on before you, it's affecting you whether you like it or not! Do you have a retirement fund? Most likely yes, well, then it's affecting you. I'm sorry and I know it hurts, I'm hurting and I have clients that are hurting too, but seize this opportunity for what it is! Warren Buffett is often quoted as saying that "Cash in a crisis is priceless", and he's putting his money where his mouth is. Look at Goldman Sachs, GE. What are you and I doing? Are we curled in fetal position waiting for the bad man with the stick beating us to stop? Or are we out there taking the stick from the man chopping it up and selling it for fire wood and turning the bad man into our servant? Are we looking to separate the innocent bystanders from the criminals, trying to find something of value to invest in? I've found a few gems in this market, Goldman Sachs for instance was a gem beaten down with a stick to $85, are you kidding me! I bought in at $115, Buffett's price by the way and rode it up. Burlington Northern, another example, try a commodity or two? You can do this too, contact me, I'll show you how! What are you doing to take advantage of the scenario you are dealt today? Keep trying to make Sense...

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...