Making Money Alert
THE MORE THINGS CHANGE, THE MORE THEY STAY THE SAME
12/27/2007
Volatility could well be the quintessential term when it comes to describing the market of 2007, so why should the final days of the year be any different? As of Wednesday's close the S&P 500 index was back above its long-term, 200-day moving average and heading for what many thought would be a strong final flurry to finish out 2007.
Well, as the French like to say, "plus ça change, plus c'est la même chose" which translates as "the more things change, the more they stay the same."
In another example of just how unpredictable the market has been this year, today, stocks sold off after news of the assassination of Pakistani opposition leader Benazir Bhutto. The murder of this exceptional, and decidedly pro-Western former prime minister was a big blow to those of us who value democracy and freedom, and to those of us who think the acceptance of these vaunted ideals by the Muslim world is a key component in turning countries away from their faith-based fanaticism and the violent expression it manifests.
In the chart above of the S&P 500, you can really see just how volatile things have been for virtually the entire year. With the exception of the steady climb from March through July, the market has really been in a state of flux. Navigating the market is never easy, but navigating seas as rough as these has been especially challenging for every investor.
One area of the market that hasn't been quite as volatile is technology. To be sure, there has been a lot of upside in tech stocks this year, but I actually think that upside is likely to be ever greater in 2008.
A big reason why I suspect greater upside in techs rather than the broader S&P 500 has to do with financial stock exposure. Take a look at the chart below of the Nasdaq 100.
As you can see, this tech-heavy index is solidly above its 200-day moving average (red line). It's also trading above its short-term, 50-day moving average (blue line). As the new year unfolds, I suspect techs and other segments of the market -- particularly those without financial stock exposure -- will continue to beat the broader market averages.
Right now my Successful Investing service has a substantial allocation to technology stocks, as well as several other segments of the market delivering outstanding returns.
If you'd like to find out more about how we're positioning our portfolio for 2008, simply click here.
Another Explosive Year for ETFs
It was another fantastic year for my favorite investment vehicles, exchange-traded funds or ETFs. To show you just how great a year it was, consider a few of the following statistics:
At the end of 2005 there were a total of 221 ETFs in the market.
At the end of 2006 the total ETF count was 369.
At the end of 2007 the total ETF count is 628.
My friends, this is a jump of 259 ETFs this year alone. During the past two years the market added 407 ETFs! Now that is what I call popularity, and that popularity is really catching fire among not only individual investors, but also retirement plan administrators, hedge fund managers and just about anyone who wants to get their money allocated to a variety of market segments in the easiest, lowest cost and most efficient manner available today.
I have no doubt that 2008 will be another banner year for the growth of ETFs, and to that I say, bravo! There is nothing I like better than seeing a plethora of user-friendly, low-cost products come out of Wall Street, and you can be sure that I will continue my vociferous advocacy of ETFs into next year and beyond.
What Are Your Financial Goals In 2008?
It's a new year, and I want you to help you make it your best financial year yet.
If you're like me, you want to challenge yourself by setting your financial goals realistically high. Here are a few tips that I have found helpful when setting my own financial goals.
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Save more money. If you look around at your friends and family, you're sure to find a few spendthrifts and a few big spenders. If you want to do better financially in 2008, I suggest you emulate the frugal types rather than those fiscal freewheelers.
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Max out your 401(k). A great way to start the new year off right is to save more money in your 401(k) or other company-sponsored pension plan. If you are currently saving 6%, why not move that number up to 8%? If you are behind on your retirement savings, you really should make 2008 the year you choose to take control.
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Target a rate of return. Why not set a goal for the new year as to how much return you'd like to get from your assets? Whether your goal is 10%, 15% or even 20%, the mere fact of putting a number on your rate of return will help you concretize your goal and help you make tangible that which is just a mere floating abstraction.
We'll have more on how to make 2008 your best year ever over the next several weeks, so make sure you read each and every issue of the Alert.
The Rest Is Still Unwritten
No one else can feel it for you
Only you can let it in
No one else, no one else
Can speak the words on your lips
Drench yourself in words unspoken
Live your life with arms wide open
Today is where your book begins
The rest is still unwritten—Natasha Bedingfield, "Unwritten"
The above lyrics are from the extremely upbeat and positive hit song, "Unwritten," by English pop music sensation Natasha Bedingfield. Whenever I hear this tune, it reminds me of the goals and missions my family has been committed to providing you, the individual investor, for nearly three decades.
You see, when it comes to your life, no one else can live it for you. You are the author of your own destiny, and helping you write your heroic novel is what the Fabian family is here to do.
Toward that end, I'd like to announce the launch of two new Fabian Web sites that are focused on the delivery of financial education and wealth management information. These sites have been built from the ground up to deliver the latest multimedia audio streaming, video presentations, special reports, financial insight and more.
Here is a preview of what you can find at each site:
The radio Web site has been the anchor of our nationally syndicated radio talk show, Doug Fabian's Wealth Strategies, for several years now, but never has it been easier to keep in touch with my team of experts and me.
Audio and Video Archives make it easy to stay up to date on the market's latest moves.
Doug's Blog gives you the chance to read and listen to my latest comments on the market and all things related to investing.
Our Live Events page keeps you current on seminars we are conducting in your area.
It's also now extremely easy to stay in touch with our team of experts, including:
- Asset Management
www.FabianWealth.com
We also are proud to introduce the launch of the new asset management Web site from Fabian Wealth Strategies.
Fabian Wealth Strategies, a registered investment advisor, is managed by my son David and me. With our combined experience of more than 30 years, we have set out to develop a unique company within the financial services industry. Our combination of asset management, financial consulting, and investor education provides a holistic approach to wealth management.
Fabian Wealth Strategies provides personalized investment management services for individuals with accounts of $250,000 and above.
To get the retirement lifestyle you want -- we believe that it's all about knowing your most important goals and then designing a detailed plan to meet them.
Other innovations in the Fabian bag of tricks include the recent launch of my new radio program, airing in the Phoenix, Ariz., market every Monday morning from 8-9 a.m. PST.
The Monday show can be heard on AM 1510 KFNN in Phoenix and adjacent markets. If you don't live in the area, you still can listen live or get a podcast of the show.
And finally, if you want to know how your mutual funds are performing, we've got you covered. We just launched the new Fabian Lemon List, which is a complete rundown of America's worst-performing mutual funds.
To find out more about the Lemon List, and to get our free special report, Turning Lemons Into Lemonade. The report and the Lemon List are both free, so get yours today!
As you can see, when it comes to innovation, constant improvement, and a never-ending commitment to helping you build your wealth, the Fabian squad will continue to be on the job and there for you for many more decades to come.
The rest, as Ms. Bedingfield might say, is still unwritten.
They're Baaack! The Return of Free Annuity Coaching Sessions 2
I am enjoying my daily conversations with readers around the country, and one subject that keeps cropping up is what to do with Variable Annuities (VAs).
Should you roll over your existing annuity? Should you spend it? What is the most tax-effective way to get money out? Do indexed annuities make sense for you? Are all the promises that annuity companies make true?
Honestly, I don't have all the answers myself, but if you know what questions to ask, you're usually able to make a well-informed decision by seeking out the right assistance. That's why I am proud to announce the return of the FREE annuity coaching sessions.
I've always found that these annuity coaching sessions -- specifically geared toward helping individual investors understand the sometimes confusing landscape of variable annuities -- help me better understand what's on investors' minds. They also help me to help you to figure out the right way to properly manage your VA.
Understanding annuities requires experience and knowledge. I want all of my Alert subscribers to know all of their options before making decisions. If I can help you with your annuity questions, please just pop me an e-mail and let me know.
If you want to get your FREE annuity coaching session with Doug Fabian, simply send an e-mail.
Straight Down The Fairway 2
My friend and colleagues Kevin Yurkus, President of Fairway Capital, was on my radio show recently. Always one to offer sage advice, Kevin told us about a little-known fact regarding life insurance.
He explained that your term policy may be worth more then your insurance company is telling you. As a matter of fact, some policies close to expiration could be worth tens of thousands of dollars.
What your life insurance company doesn't want you to know is the subject of my fascinating interview with Kevin, who also spoke about how high-net-worth investors can avoid what he calls, "the voluntary estate tax."
I highly recommend that you listen to my complete interview with Kevin Yurkus, who I am proud to call my newest high-net-worth investing expert.
Wisdom From The World of Racing
"One of the great challenges of driving a racecar is that nothing is ever exactly the same. You always learn. You always have to be ready to adapt and change."
—Danny Sullivan, Indy Car World Series Champion
The above quote by Indy Car Champion Danny Sullivan could just as easily have been said about investing. In fact, just replace "driving a racecar" with "investing" and you have a perfect maxim for the challenges we face when trying to grow our money. As the new year approaches remember that just as in auto racing, investing requires that you be ready to adapt and change to whatever conditions confront you. Is this tough? Yes, but together we can all take the checkered flag!