Today's Market
by Dr Invest

More confusion remains in the market. One analyst says, expect stocks to collapse and the dollar to strengthen. He also claims that a recession is eminent. Another analyst says, the FED must stimulate the economy now and expect the market to rise 30% before the end of the year.

Today a rise in applications for unemployment for the fourth straight month was reported. All the while, analysts have been talking about how strong the economy is and debating the unemployment figures. While some analyst are busily arranging the chairs on the sun deck, the ship is going down.

Wait no longer

Your stocks are not going to go up in value. That is my view. Not only have we lost most of the gains from stocks in 2012, we have also have a recession in Europe. Hopes have risen for another stimulus paid for by the U.S. taxpayer. Time is running out. Euporia is beginning to sink. One day, the market rises 1%, the next day the market falls 1%. There is not a DEFINIATIVE DIRECTION in the market at this time. Who can know... but this SIDEWAYS movement is indicative of either a strong breakout or a significant downturn. Hmmm....let me see.... uh, I'm guessing DOWNTURN? Look, is there anything in the market that would make you think that we are on the edge of a prosperous upturn? If not an upturn, then the only other possibility is a DOWNTURN. And in the face of worldwide economic slow down, I'm gonna suggest that if you are holding on to stocks right now, they will only go lower.

Sure, a little stimulus will spark the market for only a short while, but without real changes in the world-wide economies we are set for an immediate downturn and possible years in a pathetically poor GNP.  Wait no longer! Get out of stocks and if you invest back into stocks, only do so when it is most favorable for a positive return.

Being Prepared

When a "recession" returns it will no only affect stocks, but bonds as well. I have suggested utilizing ETFs because they are easy to get into and to get out of. Always, always, always, limit your losses with at STOP-SELL. Do not be caught flat footed! Determine now how much you are willing to lose and if you have any, and I mean any securities, put a STOP-SELL on them.

Listen, I would never lose more than 10%. If I have been invested in some type of security and it has already made me money...and I knew that the market was nearing collapse, I would move my STOP-SELL closer to the daily closing price to get as much profit as possible. (questions: drinvest@mail.com)

This market is nothing to TOY with. It is in this kind of market that fortunes are made and lost. I don't want to do either...I just want to survive. There are complicated ways to HEDGE, but even professionals trip on their shoestrings.

So let's keep our trades simple and make money when we know it is most possible.

A Home for the Cash in your Portfolio

This week, I have been researching the best money market accounts or Certificates of Deposit where you can invest your money an keep it safe. Let me be blatantly honest with you! The FED has made CDs worthless, so you will be forced to buy stocks. They are devaluing BONDS as well with the use of TWIST. More of these actions will take place by the FED because they don't want you to have a "safe harbor" for your money. Even gold, has recently been driven down by designed market pressures. The goal is to GET CASH MOVING. If you invest in real estate... a safe-haven I do believe, someone else may use that cash to buy a new car...or money will flow to real estate brokers, bankers, and mortage brokers... some where, some one, hopes the government, will spend cash.

At this time the safest place for 1/3 of your portfolio, set aside for cash, is in a CD. I also see Real Estate as a viable option, but your cash would become less liquid. There is also the difficulty of a deep-recession devaluing your real estate. But on the other side, inflation has to take hold at some point, where real estate could grow in value 20% to 40%.

Gotta go...if I think of some new ideas, I will share them.

(note: the above article is for entertainment purposes only and not to be used a investment advice.)