Thank goodness it is 2009! The fourth quarter of 2008 was crazy for the market. The wild swings and incredible volatility were maddening. Most investors don’t want to be reminded of how bad it was, but it was apparent in their monthly statements. The good news is that it is over.
To me, the holidays are all about the kids. At some point, we all reach the age when our parents have to get us up to open presents rather than the other way around. And once you reach this age, the holidays are a lot more fun when there are little kids around.
The old saying that the market likes to climb a wall of worry is going to come into play over the coming months. If the amount of fear in the market is any indication, that wall has reached new heights and the climb could be long and steady.
Yesterday, I was speaking with a friend of mine who works within the financial industry, on the advertising side of the business. And something Tom said hit home with me: With companies cutting back on advertising, parts of his business are down – but online brokers are going strong.
In golf, when you are putting in the wind, you have to widen your stance.
In volatile markets, this rule can be adapted to apply to trading as well. It may seem like strange advice, but in times of extreme volatility, you need to widen your stop-loss points. Most people think you have to do the opposite and tighten them.
When you hear investment people talk about the big three, they are usually talking about GM, Ford, and Chrysler. But what about the other big three?
As children, most of us dreamed of having three things when we grew up: a nice house, a nice car, and a nice job. Right now, the outlook for this big three is about as optimistic as the outlook for GM, Ford, and Chrysler.
Senator Obama pledged to spend $150 billion on alternative energy during his campaign, and wind energy is an area of interest. With the current financial crisis, he might not be able to devote that much to alternative energy right away – but over the next four years, you can bet government money will be directed at wind and solar energy companies.
You see, “Chris” is a regional sales manager for one of the biggest pharmaceutical companies in the world. His area covers four states, including Florida. And it turns out that inside the pharma industry, they aren’t worried about Obama overhauling the healthcare system.