Making Money Alert
FINANCIALS REMAIN IN PERIL
11/07/2007
The major market averages have, to a great extent, managed to keep a stiff upper lip in the face of record-high crude oil prices and the continuing peril in the financial sector.
I think this market's resilience is truly remarkable, especially when you consider that so many of the stocks in the financial sector have been trounced by the latest bout of subprime flu.
Industry stalwarts like Citigroup (C) and Merrill Lynch (MER) have had some really high-profile implosions of late, but I believe these companies could be just the tip of the proverbial iceberg when it comes to an even wider collapse in the financial sector.
I said this last week, but I will say it again. If you are even thinking about investing in financial stocks at this juncture, just don't do it! Even the most successful bottom fishers out there aren't wading into the financial pond yet, so there is no reason for you, the individual investor, to do so either.
Because financial stocks make up a sizeable portion of the S&P 500 Index, the drubbing in the sector has caused the S&P 500 to meander about of late. In fact, if you look at the chart below of the S&P 500 over the past six months, you'll quickly realize that the market hasn't really made much headway.
From a technical analysis perspective, the S&P 500 is now sitting rather precariously above the 1,490 mark. I think this is where the key level of support is right now. If we were to break below that 1,490 mark, things might start to get tough for the bulls.
Adding to the potentially tough slogging for the bulls are those aforementioned record-high oil prices. I figured we would get to $100 oil at some point in the next few years, but I didn't think we would be knocking on its door with nearly a full quarter to go in 2007!
I guess this goes to show how the most important commodity of our time is also one of the most volatile.
Now if all of these negatives paint a bleak picture of the market going forward, I am here to tell you that such a widespread slippage is most definitely not the case. There are some tremendously positive sectors in this market. Sectors like energy, gold, technology, alternative energy, China and international stocks have all been on a tear of late.
This sector divergence between financials and other high-flying sectors should serve as a key lesson when trying to make the most of your investment dollars. That lesson is diversification and sector allocation.
Right now subscribers to my Successful Investing advisory service have a 100% allocation to equities, but that equity exposure is carefully spread out amongst technology stocks, energy stocks, health care stocks and stocks aligned with the China bull market.
More importantly, we are avoiding any direct exposure to the financial sector and other sectors currently suffering through the symptoms of the subprime flu.
Are You In Tune With Your Finances?
I know that most of us spend a large amount of our day dealing with all of the urgent matters that life throws at us. Whether it is urgent matters in our work lives or our home lives, many times those urgent matters take up nearly all of our time.
When urgent matters take control of our lives, they tend to push those important affairs off to the side. Unfortunately, one of the most important of affairs that gets pushed to the side is money and finances.
Ask yourself this question: Are you in tune with your finances?
If you can't answer that question with an unqualified and unequivocal "yes," then you need to attend my upcoming Wealth Strategies 2008 seminar.
This seminar will help you get one of the most important relationships you'll ever have back on track -- the relationship between you and your money!
This event will take place in just three more days, on Saturday, Nov. 10, at the Orange County Hyatt in Anaheim, California.
This all-day event will help you discover why:
Now is the time to increase your overseas investments
Now is the time to get ready to buy real estate
Now is the time to profit from the Chinese economic phenomenon
Now is the time to get a complete understanding on how exchange-traded funds (ETFs) work, and how you should be using them to help create wealth
Let's face it, over the past few months we have experienced unprecedented volatility in the financial markets. Interest rates, bonds, stocks and currencies have fluctuated wildly for one reason and one reason only -- investor uncertainty.
Investors around the world are reassessing their future risks and opportunities. The most important question for you and your family is: Are you prepared for another year of this wild market uncertainty?
In my roles as investment advisor, radio talk show host, and wealth consultant, my overriding mission is to help educate investors and make them aware of what they need to do to prepare for another year of volatile, uncertain markets.
That's why I am really excited about my upcoming Wealth Strategies 2008 investor conference. In just one action-packed day you'll find out how you can grow your assets by 20% or more over the next 12 months.
I know that is a big promise, but given the unprecedented era of investment opportunity in front of us, I think it's a promise my team can keep. In all my years of investing, I have never been more excited about the future than I am right now.
Let me share with you four reasons why 2008 may be the best investing year of your life.
Global Economic Growth 300% Greater than the U.S. Economy. Never before in history have the promise and benefits of capitalism touched the lives of so many people around the world. This means huge investment opportunities outside the United States.
China Becomes the Third Largest Economy in the World. The emergence of China as an economic superpower is extraordinary. Just as the United States has dominated the economic landscape for the past 60 years, now China will affect your life in many ways. Your job, your mortgage, and of course your investment portfolio will all be affected by China's economic awakening.
The Down Trend in Real Estate Equals Opportunity. Record foreclosures and the economic impact of the bursting real estate bubble provide a truly extraordinary but untapped opportunity to buy real estate at prices 30-50% below peak levels.
The Emergence of the Single Greatest Investment Tool since the Mutual Fund. You may not be aware of the power and opportunity of exchange-traded funds (ETFs), but I am here to tell you that this investment tool can change your life. Once you have the knowledge of how ETFs work, you will be amazed at the growth potential for your investment dollars.
These four subjects are the focus of my one-day event on Saturday, November 10, 2007, at the Orange County Hyatt in Southern California. On that day, you will experience a comprehensive wealth-enhancement conference designed to grow your assets 20% or more in 2008. Here is our speaker lineup for this event:
International investing specialist Keith Fitz-Gerald will speak about the Global Opportunities for your portfolio in 2008. Keith is a respected market professional with nearly 20 years of experience. He has an extensive insider's network that he puts to work for you to get the inside track on what's really happening in global markets. He also is a professional trader and a licensed CTA who advises institutions and individuals.
China expert Peter Navarro, author of the best-selling book, The Coming China Wars, also will present. Peter will showcase his insights on How China will Impact Every Aspect of Your Financial Life. He also will tell you how you can profit from the emergence of this economic superpower.
Real estate advisor Josh Lewis is another featured speaker. He correctly called the top in the real estate market back in September 2005 and now he sees The Greatest Buying Opportunity in Real Estate investing in the past 10 years just on the horizon. You'll definitely want to be ready when the opportunity presents itself. With Josh's help, you'll be well prepared.
And finally, I will be the host of the entire full-day event. As a bonus, I also will be presenting my seminar about ETFs: The Future of Investing. This seminar will teach you how exchange-traded funds can make your investing endeavors simple, inexpensive, profitable and even fun!
Join me at the Wealth Strategies 2008 conference. The cost is just $99, and if you want to bring your spouse or a friend, its just $50 more. The opportunity to listen to some of the sharpest minds in the investment world will happen on ONE day and ONE day only -- Saturday Nov. 10, from 9:00 a.m. to 4:00 p.m. at the Orange County Hyatt.
ACT NOW To reserve your space!
THERE ARE ONLY THREE DAYS LEFT UNTIL THE EVENT OF THE YEAR! DON'T MISS YOUR CHANCE TO ATTEND THIS VERY SPECIAL EVENT!
Seating is limited, and you don't want to miss out on this event. If you aren't completely satisfied, we offer a 100% money back guarantee. Simply click the button below to signup or call 888-300-3684. I'll see you there!
P.S. To listen to a free preview of what will be discussed at Wealth Strategies 2008, Click Here
Savoring A Mutually Rewarding Experience
Yesterday I had an absolutely fantastic wealth coaching session with a young couple who had done many things correctly in preparing for their financial future.
This couple had some very nice savings; they had solid life insurance policies; they owned a home, and they were putting away a lot of money in their retirement accounts.
What they didn't know was what to do next.
That's where I came in.
As their wealth coach, I was able to discuss with them their goals and objectives, and together we came up with some concrete action steps designed to take them to the next level.
I just can't express to you how mutually rewarding an experience this coaching session was for all three of us. The gratification we all received as a result of our combined efforts was maybe the most rewarding experience of my professional life.
And, the great thing about these coaching sessions is I get to do them everyday!
The only analogy I can think to describe this level of professional gratification comes from the world of sports. If I were a baseball player, it would be as if I hit a home run every game of the year. That's really how it is for me, and judging by the overwhelmingly positive reaction to my many coaching sessions, I think it is safe to say that is also how most people feel about their coaching sessions.
The best part of the coaching process is its simplicity. I meet with you one-on-one in two separate interviews. In those interviews we document your short- and long-term goals; discuss your concerns, worries and even fears about your money; we review all of your invested positions, and I give you my opinion on each.
Then we develop a sample ETF portfolio designed to meet your unique objectives. I also give you specific action steps you can take to help move your financial situation in the right direction.
If the idea of having your very own wealth coach appeals to you, I urge you to get started now. "Money never sleeps," as the old adage goes, and everyday you wait to get on track to meet your objectives is truly a lost opportunity.
For more information about how you can schedule your very own coaching session, call David Fabian at 800.391.1118, or e-mail him.
Blogs Away: A Fabian Aural & Visual Fixation 4
Want to hear my latest rant about the state of the financial markets? Well, listening and watching now is as easy as a mouse click.
To listen to the audio blog, simply click here.
Doug's weekly video cast has been postponed this week due to scheduling conflicts. Check back next week to watch his weekly rant.
The Wisdom of Paine
"The most formidable weapon against errors of every kind is Reason."
—Thomas Paine, The Age of Reason
It took a tremendous amount of courage for Thomas Paine to publish his thoughts on the unholy alliance between state power and organized religion. But Paine knew that in his corner was the one true ally we should all count on whenever times get tough -- namely the efficacy of our own minds. The next time you need to summon up the courage of your convictions, remember that your strongest weapon in nearly every case is the guiding light of reason.
Wisdom about money, investing and life can be found anywhere. If you have a good quote you'd like me to share with your fellow Alert readers, send it to me, along with any comments, questions and suggestions you have about my radio show, newsletters, seminars or anything else.