Making Money Alert
YOU CAN'T HANDLE THE TRUTH!
12/19/2007
A losing December in the market? That's nearly unheard of, especially following a dismal month of November.
So, what's wrong with this market? I guess the best answer is that investors are just really nervous right now. People are justly worried over the truth of an economic slowdown, a less-than-aggressive Federal Reserve and the prospect of more big writedowns from the major investment banks.
This market reminds me of the line in the film "A Few Good Men," when the Marine Corps officer, played unforgettably by Jack Nicholson, yelled out, "You can't handle the truth!"
The truth right now is that things are precarious. I think we're on the knife edge of a sustainable trend in equities, but the problem is nobody really has any good idea as to which way that trend is going to go.
The only way to play this market is to employ some very firm discipline. That means that even if you think the market is going to go higher from here, you have to draw a line in the sand with respect to protecting yourself if things go lower.
As you can see here in the chart of the S&P 500 above, we've drawn that line in the sand right around 1405. If stocks plummet below this level, it could be a long and brutal winter. If, however, we managed to stave off any more serious selling, the sky might finally begin clearing up.
If you'd like to find out more about how we employ discipline and objective analysis in my Successful Investing advisory service, simply click here.
The Rest Is Still Unwritten 2
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:
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 4
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.
Financial Fitness 2008 -- Focus, Plan, Execute
Nearly every time I take people through my wealth coaching process I am surprised about what they don't know about their money. There are a plethora of problems plaguing investors, not the least of which are a lack of focus when it comes to their current holdings; amorphous and ill-defined goals; lack of a financial game plan; too many financial accounts; money on the sidelines being neglected; lack of access to exchange-traded funds; not enough international exposure in the their portfolios… and the list goes on and on.
This lack of what I call financial literacy is shameful, especially when you consider the tremendous amount of access we have to financial information. I hate to say this, but I think most of our lack of financial literacy is due to plain old laziness. In fact, much like diet and exercise, it's easy to know what to do, yet often very hard to actually get out there and do it. Fortunately, there is a solution to even the most financially lazy amongst us.
The solution starts when you decide to focus, plan and execute. Just making the decision to focus on your finances makes your financial life come alive. Once the decision is made to focus on your finances, putting a plan in place actually is surprisingly easy. And of course, once you've got a plan in place, executing that plan is a piece of cake.
As the new year rapidly approaches, I want you to take the following five steps toward a better understanding of your financial fitness.
Know your net worth. Tally your assets and subtract your liabilities to find out what your real financial picture looks like.
Save, save, save. How much are you saving each month towards that long-term goal of retirement, your kids' college funds, and your future nest egg? How much total do you have saved towards that goal now? Will it be enough when you need it?
Consolidate, consolidate, consolidate. You don't need or even want multiple investment accounts or a number of different companies working with you and your money. Today you can consolidate your assets via one brokerage firm and often with just one statement per month.
Know your asset allocation. Have a mix of stocks, bonds and cash. This is the simplest form of asset allocation, but is your asset allocation right for your stage in life?
Have some international equity exposure. As you've seen here in this issue, when it comes to winning in 2008, your money is going to need to spend some time overseas.
These five steps should get you on the right path to a great 2008!
Happy New Year!
Timberrrr! Introducing the New Claymore/Clear Global Timber
There's a new exchange-traded fund (ETF) aimed at you tree huggers out there. It's the Claymore/Clear Global Timber Index (CUT), which began trading in November of this year. This is the first ETF available in the United States that invests purely in global timber companies.
This fund seeks results that correspond generally to the performance of the Clear Global Timber index. The fund normally invests at least 90% of total assets in common stocks, American depositary receipts and global depositary receipts that comprise the Clear Global Timber Index.
The Clear Global Timber Index includes 27 companies from 11 countries. U.S. companies make up more than a quarter of the index, but Canadian and Japanese companies also are well represented.
Brazilian pulp and paper products company Votorantim Celulose (VCP) is the fund's largest holding, with Spain's Grupo Empresarial and Virginia-based MeadWestvaco (MWV) finishing off the top three.
The fund carries an expense ratio of 0.65%, so it definitely is a low-cost way to buy timber companies.
As the global economic boom continues, the world is going to need more timber, and CUT certainly is the best way yet to participate in the demand for more and more timber.
Blogs Away: A Fabian Aural 12
Want to hear my latest rant on the state of the financial markets? Well, now listening, and even watching, is as easy as a mouse click.
To listen to the audio blog, simply click here.
It's What's Inside That Counts
"What lies behind us and what lies before us are small matters compared to what lies within us."
—Ralph Waldo Emerson
This time of year, it is especially tempting to get caught up in looking back on the year that was, and looking ahead to what's in store for the coming year. And while we should all look back at our mistakes and our successes, and while it is important to plan what we are going to do in the future, there is one constant in both those calculations -- and that constant is us. Rather than looking externally for insights into improvement, you might find that improving what lies within is what really makes the biggest difference.
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.