So my MoneyMan says that there is pent up demand for stocks right now. He mentions a decline in the momentum to the downside . . . brewing demand will cause a lil bit of a rally and things get pretty interesting towards the end of each trading day--Could this be it? Should I be a part of this demand? Is this the time for me to jump in and test the waters?!?!?
I don't think so, my friend. The waters are full of hungry sharks and the scent of fresh blood may already have them circling in a frenzy!
"Chill out!" He tells me. For a newby like myself, picking this time of all times to dive in--even with arm floaties--could be the be most erroneous decision for me to make.
So he recommended that I pick up a Barron's and keep reading through this "crisis." I'm still acquainting myself with market jargon--subprimes, dividends, margin calls, ankle biters, traction---it is all very exciting! I figure the more knowledge I accumulate the more chances I have of being successful as an investor. KNOWLEDGE IS POWER!
Dan also says that there should be a couple of weeks of rallying. He explains in more detail how this works on his blog . . . more or less, he does it by not allowing his decisions to be led my his emotions about what is going on in the market on a minute-by-minute, hour-to-hour or even a day by day basis. This way you cant' be fooled by "daily movement," and you can focus more on more meaningful developments.
I've heard many people compare him to a surgeon, operating with precision and remarkably skillful with his tools . . . the market-his table, the patient-his portfolio, buying and selling, only at the right times.
What do you think holds us back? What keeps us from making the right decisions when it comes to investing and managing our own money, stocks and bonds? Do we act out of fear of failure; is it our lack of courage that keeps us from holding on longer tahn we feel comfortable doing?
Courage is about doing things that are scary even if you are scared . . . heed my MoneyMan's words: Have confidence in yourself!
Tune in to BizRadio 1110AM to hear the sound of your money growing.
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About Me
- Dan Frishberg
- I'm the Founder and CEO of the BizRadio Network, as well as CEO of Frishberg, Jordan & Kaleta Advisors.
About Dan "The MoneyMan" Frishberg
Met the "Total Money-Talk Rockstar!" I am not just pumping him up, Dan "the MoneyMan" Frishberg has many talents! He's a radio/TV personality, and CEO/Founder of BizRadio Network. Lecturer, orator, and teacher.
He grew up with a financial state of mind and is now spreading his "Wall Street Wisdom" via the airwaves on 1110AM in Houston and 1110AM in Dallas/Ft. Worth. Tune in already!
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1 comments:
here is something that mike norman wrote :
A major policy shift is coming out of Europe. About a week ago the EU Commission decided that there should be more flexibility in the Stability Pact. Remember, the Stability Pact limited member countries' deficits to no more than 3-percent of GDP.
Under the news rules member countries will be allowed to run higher deficits for longer periods of time, if so needed. Therefore, the "one size fits all" rule is now gone, meaning that the Stability Pact is, for all practical purposes, dead. This has enormous implications for European economic growth rates and more importantly perhaps, for the euro exchange rate.
The Stability Pact was the bulwark of the euro's strength since its inception. Indeed, in a region where you saw high unemployment, sluggish or non-existent economic growth and massive structural inefficiencies, there is little fundamental justification for a strong currency. But the Stability Pact made the euro strong because it mandated anti-inflationary or even deflationary policies even if economic growth was weak. In other words countries in the Eurozone were not able to stimulate aggressively if their economic growth was weak. It therefore caused monetary growth rates to remain weak and that created an artificial shortage of euros and a global short squeeze developed. This has been the entire reason for the euro's rise in the past two years.
However, with EU member countries having been given the green light to ramp up deficits and maintain them for longer periods of time, growth will take precedence over inflation fighting, and euro creation will rise (perhaps rapidly) causing the euro to fall. You should start shorting the euro--aggressively--on any rallies now. It is going a lot lower.
With the Stability Pact now (de-facto) dead, the euro will begin a long-term decline. THIS IS A MAJOR TRADE!!!
now, it turns out this was written in 2004 and he's wrong. the euro should have been LONG
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