Monday, June 21, 2010

Market Updates


It has been awhile since I sent any market or financial updates. Plenty has been going on. My hope is that if you are concerned about any financial portfolio you have and are actively monitoring / managing it, you have at least signed up for the no-cost services provided by the Weiss Research team. If so, then anything I post in this message is redundant.

I was going to put together a list of recent links to the latest Weiss Research articles, but was unable to complete it. Lo and behold, procrastination paid off. This morning (Monday, 6/21/10), Martin Weiss did it for me. Imbedded in this morning's issue, 4 Urgent Warnings From The Most Unlikely Source, are links to every article I was going to compile. I love it when a plan comes together!

Just to demonstrate that the Weiss team is not the only source for sovereign debt concern, here is an article from John Mauldin's "Outside the Box" e-mail: "Print Baby, Print." Mauldin's sources tend to be a bit more on the academic side, but if you forge through it, you will see many similarities between the various sources.

These are times in which a lot of financial and market shifts are taking place. Neither our nation nor the world has faced the magnitude of dynamics (such as national debt) we are seeing today. Indications are that the more successful portfolios will need to adapt to these changing times in order to preserve capital and hopefully profit. The good news is that the products available to potentially accomplish this have been on the market a long time. They are not exotic financial instruments that are beyond all comprehension. They are market instruments that make it easier for the normal person to be able to participate in markets that were once available only to dedicated traders. For instance, natural resource markets used to be available exclusively to futures traders. Now, however, they are available to everyday investors and portfolios through Exchange Traded Funds (ETF) and Exchange Traded Notes (ETN). They are similar to mutual funds, only they are traded on exchanges like stock. Over the past few years, many ETFs and ETNs have come to market. So if you want to invest in oil or natural gas commodities, you can choose ETFs like USO or UNG. Same with gold & silver (GLD & SLV). You buy funds and notes that track major indices: Dow Jones Industiral average (DIA), S&P 500 (SPY), and NASDAQ 100 (QQQQ). You can even buy ETF shares that are designed to profit when markets fall; again, Dow Jones Industrial average (DOG), S&P 500 (SH), and NASDAQ 100 (PSQ). The good news is that these allow IRA accounts to profit from bear (down) markets, too.

Anyway, the key goal is to know what investments and trades make the best sense in the prevailing economic and market conditions. Regardless of who you choose to follow, make it a point to check your portfolio regularly to keep a sense of how it is doing and to try to keep from being completely blindsided. If nothing else, if the major markets take another 2008 major nosedive, even a move to the sidelines into cash can go a long way to preserve wealth and provide capital for new investments / trades in better conditions.

Well, I've gone on longer than I intended to. Hope this helps. Stay alert.

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