Euro zone leaders struck a last-minute deal to limit the damage from the currency bloc’s debt crisis early on Thursday, however, they are still far from finalizing plans to slash Greece’s debt burden and strengthen their rescue fund.
After a summit in Brussels, governments announced an agreement under which private banks and insurers would accept 50% losses on their Greek debt holdings in the latest bid to reduce Athens’ massive debt load to sustainable levels.
While the headlines look good, the devil is in the details. We don’t actually know how they are planning to increase the bail-out fund size from 440 billion euros to a trillion. On top of that, there are some questions as to whether one trillion euros in itself is enough.
Even if Greece is bailed out, Italy’s debt problems could be next, and that is more severe than Greece’s debt problems.
With the Stock Market up close to 3% today, I am glad I have been buying small increments of stock over the past few weeks, however, I am selling some positions today to raise more cash, so if/when the market pulls back, I have the cash to buy stocks at a lower price than today’s prices.
The Dow Jones Industrial Average (DJIA) is trading at 12,174 today, and the all-time high for the DJIA around 14,100, means the DJIA is trading today 14% below it’s all-time high. With all the problems we have with the U.S debt issues, waiting to hear from the “Super Committee” and their recommendations on how to cut 1.5 trillion from the U.S. debt, which if the cuts are not closer to 3 trillion, the U.S. debt rating will likely get downgraded again by S & P, but will also get downgraded by the other two rating agencies, unemployment around 9% in the U.S., debt issues in Europe, and corporations recently lowering their outlook for the near future, I think it is fair to say the Stock Market is a little ahead of itself right now.
I am NOT suggesting you liquidate your portfolio and wait for the market to decline, however, you may want to analyze certain positions in your portfolio and decide whether it is in your best interest to sell some shares. By doing this, you would have extra cash ready, if/when the Stock Market declines, you can step in and buy.
If you would like a second opinion on your portfolio or would like to receive my Free Financial/Retirement plan, please email me at JimWigen@GetWealthyStayWealthy.com.
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Jim has worked as a Portfolio Manager & Financial Advisor since 1996. In May 2005, Jim founded WHI Financial Services, LLC, WHIFinancial.com, a Registered Investment Advisory firm, with headquarters in Texas. His primary focus is on portfolio management, financial & retirement planning, and financial advisory & insurance services. Jim manages investment portfolios & advises individuals, small to mid-size companies, and non-profit organizations on a variety of financial and business issues.
Prior to founding WHI Financial Services, LLC, Jim worked as a portfolio manager & financial advisor for two international investment firms. From 2001 to 2005, Jim worked with Prudential Securities (merger with Wachovia Securities, now Wells Fargo Financial Advisors), and from 1996 to 2001, he was working with Merrill Lynch. While working with both Wachovia Securities and Merrill Lynch, Jim enjoyed dual responsibilities as a portfolio manager, financial advisor and leader of the Professional Development Program.
Jim's responsibilities as leader of the Professional Development Program included, recruiting, interviewing, training, and overseeing the daily operations of all financial advisors involved in the Professional Development Program. Jim was responsible for managing between 10-20 advisors, while still managing his own client investment accounts.
In addition to his experience in the financial services area, Jim has been involved in several start-up companies. Jim's Philanthropic work includes serving as President/Treasurer of a private foundation established to provide non-profit organizations financial assistance, and Chairman/President of the Believe In Your Dreams Foundation. In 2007, Jim established the Believe In Your Dreams Foundation, a 501(c)3 organization, to help individuals who are suffering from life-altering circumstances beyond their control.
Jim has taught investment, insurance, and credit repair classes through continuing education at universities in CA & TX since 1997. Jim attended the University of Minnesota where his focus was Management & Marketing.
Jim has recently written two books, one called "Your Financial Lifecycle" a book which describes several key investment topics everyone will face throughout their life, and a book titled, "The Truth about Your Credit Score", which defines how credit scores are calculated and how you can increase your credit score, including templates which you can use to send to creditors.
Jim's books can be purchased on Amazon.com, via Author search, or by emailing him directly at JimWigen@GetWealthyStayWealthy.com.
In the Fall of 2011, Jim will be starting his radio show called, The Jim Wigen Show, Teaching You to Get Wealthy & Stay Wealthy. You can hear his shows through streaming audio by visiting JimWigen.com.
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