Friday, January 1, 2010
New Year means New Fears
What a year 2009 turned out to be. If you had the Iron stomach and stayed the course for your investments from 2008 congratulations, but is there a slight possibility we retest the lows of March 2009? One cannot definitely say "no" for the one factor that is now showing up on the radar screen is the fact that inflation will be a force that we have to deal with. The other is the VIX index(volatility and fear Index) has become sheepish again and with a new year means new issues will have to be dealt with. Issues? Employment is most concerning for the market will have to find a way to absorb not just 1000's but 100,0000's worth of those out of work. Foreclosures, cannot even get this one fixed until the employment issues are resolved. Energy. Has moved to the back burner but this is really a World problem as we still are importing this oil based product. Inflation, we currently experiencing this but in mild fashion so that we are not yet feeling the effect, but this one is bound to jump and add to the mix. Economic growth, The talking heads will have you believe that we are in a boom cycle, but when you talk to the real economy of the small business owners all you hear is how they are going through great lengths to keep things afloat without the aid of the government. Balance of power and wealth. One issue that no one is truly addressing is in this latest economic hurricane is the rich did get richer but not in the monetary sense, but more in the sense of the ability to acquire more assets on the cheap which will inflate the growth of the portfolios in the future. As for Dexterity, are we witnessing a shift in economic power as China continues it's industrial revolution as we hope they keep buying our debts to keep us afloat. Keep in Mind that these are the issues, mighty big, that face each one of us as an investor or not. Although gloomy,one engine that will always work for the US as nation is ingenuity, even though the government is making prosperity a tougher outcome. The other is we do have a stock market that can help one achieve economic prosperity with hard work and dedication. The stock market will always remain one of the greatest wealth producers we will ever have. Don't forget to try your free two week trail of www.Themoneychart.com and start getting your stock picks today. Have a great new year and look forward to the excitement of things to come.