11/30/2005
Have you lost enough money in the markets? I've never had anyone tell me they haven't. But when is enough really enough to actually drive you to change the way you manage your money? What will it take for you to seize control of your portfolio, dust it off and re-energize it to score bigger gains and avoid those devastating losses? Most investors can live with missed opportunities, they don't like it, but it doesn't keep them up at night. It's the big, bear market loss that dredges up those sick feelings of regret, angst and frustration.
Do you have a bear market plan? I guarantee there will be another bear market and I guarantee that if you do not have a bear market plan you will lose more money—a lot more money. Bear markets ravage the average portfolio by 30% and yet, most brokers and money managers don't even want to acknowledge the eventuality, let alone prepare for them. In fact, the term "bear market" is absolutely taboo to most money managers. It carries with it an almost un-American connotation. That's just nuts. What's un-American is to know that your money is exposed to a catastrophic loss and to just allow it to sweep through and take away so much money that you may not be able to recover from it. What's American is having enough money to live out your retirement in style. You can't do that if you are exposed to a loss of one-third of your retirement.
And so I ask you again: Have you lost enough money in the markets? If you have, then you need a better plan.
You need a plan that will grow your portfolio while safeguarding your future against the next bear market.
If you know that the last bear market is the last big loss you are ever going to endure, I urge you to join Ed Foster, President of Fabian Financial, and me for a very special workshop entitled "Re-Energizing Your Retirement." This workshop is completely dedicated to showing you how you can manage your portfolio for growth while you protect it against bear market losses.
Ed and I together have over 40 years of experience in successfully growing and protecting family nest eggs. In fact, the Fabian Trend-Following Plan has the distinction of growing portfolios at an incredible 13% annualized, compounded return and avoiding every single bear market in the last 28 years -- every single one.
We'd like to help you put together a rock-solid plan for profiting in all market conditions while protecting yourself against the big loss. We will be in Las Vegas on Wednesday, December 7, 2005 at the JW Marriott Las Vegas Resort at 6:30 pm. Or you can join us in Santa Monica on Wednesday December 13, 2005 at the Santa Monica Doubletree at 6:30 pm.
Ed and I will show you how you can avoid bear market losses and how you can easily capitalize on momentum plays for maximum profits in both domestic and international market. We'll give you all of the tools and tips you need to become a proactive trend-follower.
Ed and I will give you a second opinion on your retirement investments. We will review your retirement investing strategy with an emphasis on improving your portfolio's performance, costs and overall risk management.
You'll hear first-hand Ed's views on where the market is heading and what investments offer the greatest potential for growth as we start thinking about 2006.
You'll learn how you can save an incredible 50-75% in fees by using exchange traded funds and generate spendable income for you and your family.
Would you like to make money in a declining market?
You'll find out how you can make money in a declining market because trend-followers know that markets don't always go up.
Huge increases in the manufacturing sector, new home sales and consumer confidence are responsible for creating a buoyant backdrop for the financial markets that may well provide the much-needed follow through to bring Santa Claus to Wall Street.
A significant drop in gasoline prices brought consumers roaring back with their optimism and their wallets as factory orders jumped from September's 2% decline to a whopping 3.4% increase. Not to be left out of the buying frenzy, orders for new homes jumped by 13% last month, the largest increase in 12 years.
Such an increase could well prove to be the last gasp for the housing sector as buyers turned up in droves to take advantage of the mortgage rates which are expected to climb much higher by this time next year.
So, good news for the economy and a benign reporting from the release of the notes of the most recent Fed meeting could definitely keep the Grinch from stealing Christmas and positive year-end closings for the major indexes.
A sharp ascent for the markets proves that the latest buy recommendation to my Successful Investing subscribers was, once again, exquisitely timed. And our transition from value to growth based on the rotation in leadership in the markets will serve us well in the strong economic climate we find ourselves in now.
Are you invested in the sectors that pack the most momentum? Do you know how to determine the answer to that question? If not, you owe it to yourself to try Successful Investing at no risk to you for 6 months.
I'll bet you could make more money. The key to Successful Investing is to be in the best-performing sectors at the times when the market has the most momentum.
The current market presents incredible opportunities for profit, but it also demands absolute vigilance. Is your portfolio prepared to make the most out of this market? Are you prepared to get out of the market to protect profits if the current optimism hits a wall?
That's the biggest risk in a market that has short-term strength. Unprepared investors can easily be duped into believing that weakness in the market is short-lived and they will frequently buy into a market that has reversed course. That's where Successful Investing really proves its worth. By paying close attention to the trends and market momentum, we can ferret out the difference between a dip and a decline.
That's how we have avoided every bear market decline in our 28-year history. That's also how you can make more money and keep it. Try it now by clicking here:
https://www.fabianssuccessfulinvesting.com/order.php
Most of us overdid it on Thanksgiving. For me, it was the extra stuffing and the second piece of pumpkin pie that put me on the other side of my fighting weight.
As a result, I'm paying closer attention to being healthy. I'm paying attention to what I eat and I'm paying attention to getting the right amount of exercise. This motivation got me thinking about personal financial fitness.
There are so many things that people can do to become more personally financially fit. There's always room to improve your finances by just paying more attention to where you're spending and what you're spending it on. Just as we pay attention to our physical fitness — making sure we eat right and exercise, we also need to pay attention to our personal financial fitness. There are 5 ways that you can get more personally financially fit. They are:
1) Saving More:
One of the best places for you to save more is with a Roth IRA. Roths are just awesome savings tools because you can actually take out your contributions tax-free. Roths also have a catch-up provision that make them a great way for later starters to make larger contributions. Each individual and a spouse can contribute $4,000 a year. If you are over 50,
that number is $4,500.
2) Spending Less:
You know what's amazing? People will actually clip coupons, rent movies instead of going to the theater, only buy tomatoes when they're on sale, but these same people will buy big load, under-performing mutual funds when they can get the same kind of funds for much less by switching to ETFs.
Probably the most effortless step you can take to achieve better personal financial fitness is to get rid of your mutual funds and replace them with ETFs, which are 70% cheaper to buy
than mutual funds without those expensive management fees. It's kind of like getting a big, fat, juicy filet mignon for the cost of a Big Mac. Check out ETFs at http://www.amex.com. There they have a list of all available ETFs by sector, by industry, by country, every imaginable breakdown to give you the full story on ETFs.
3) Monitor Your Investments:
When you purchase an ETF,you are committing your hard-earned money to that investment. You simply have to stay on top of those investments and always have a plan. At Fabian, I never, ever purchase an ETF without knowing exactly under what circumstances I would sell that fund. You simply have to. That's how you can avoid losses.
4) Have the Right Amount of Insurance -- No More, No
Less:
Having the right amount of insurance is really crucial to personal financial fitness. You need health insurance so you will not suffer a catastrophic loss from an illness or injury. Did you know that most bankruptcies are the result of medical bills? It's true. Make sure you have the proper coverage.
If you have a family and/or a mortgage, you need life insurance. How much? That depends on your circumstances. How many children do you have? How big is your mortgage? A general rule of thumb is 7-10 times your income, but if you have a big family or a big mortgage, that number could be a bit higher.
The crucial issue regarding life insurance is to make sure you buy it rather than get sold a policy by someone who's making a commission. The insurance industry is evolving daily and you can now buy insurance direct from the source through quality companies. This is the best way to buy life insurance because you will pay no commissions.
5) Have a Safe Mortgage:
People are going to be burned by risky mortgages—mark my words! So many people jumped in for interest only or option ARM mortgages because they thought they could save a few hundred dollars a month. That sounds like a good plan for personal financial fitness, doesn't it? Nope. Interest rates are climbing and a lot of those people are getting nailed with increases in their mortgages that are making the 30-year fixed rates they passed up a year ago look like the bargain of the century.
Unfortunately, it's too late for them and for a lot of other people. Mortgage defaults are up over 18% in just one month.
The handwriting is on the wall, folks. I urge you to refinance adjustable rate mortgages, interest-only, option ARMS, and negative amortization loans right away. It's going to get really tough as this the Fed engine just keeps rolling through town with higher interest rates. Anyone who doesn't prepare their mortgages runs the risk of getting burned, and badly.
If you'd like to talk to an expert about your mortgage, please give Josh Lewis, "The Homebuying Coach," a call. He'll give you the perfect advice for how you should handle your individual situation. You can reach him at (800) 218-9217 or via email at jlewis@stearns.com.
My dear friends, the most important thing you can do in life is simply pay attention. By paying attention to detail to your personal financial fitness, your investments and monitoring those investments - you can make more, save more and spend less. Make it a New Year's resolution. And remember
this:
"Nothing great was ever achieved without enthusiasm."
-- Martin Edelston