My post on August 31, 2011
News came out this morning the Canadian economy shrank in Q2, first time since recession. This news, along with the slowdown in Europe, China & U.S., causes me to think the recent rally in the U.S. Stock Market will be short lived.
I know people want to believe the U.S. Stock Market fell in August, is now on its way back up and won’t be looking back, but the facts don’t support that. It is important to understand the month of September is the worst performing month in U.S. Stock Market history. Economic data for the U.S. suggests our economy is slowly declining, and people on Wall Street can’t figure out if they want the Federal Reserve to come in and help with QE3 or not.
If the Fed comes in to help, investors may be happy for the short term, but a QE3 would also represent the U.S. economy needs additional support because it can’t stand on its own two feet. If the Fed doesn’t come in with QE3, Wall Street will be worried that declining U.S. economic data will throw our economy into another recession, although there is much data that shows we never got out of a recession.
My advice, don’t sell your stocks and wait for the market to decline from here, stop adding on to your stock positions right now, and wait for the market to decline in September. If you are adding to your 401k, continue to do that, however, make sure your new contributions are going into your Money Market investment option, every 401k has to have that as a investment option.
Since this post I made on August 31, 2011, the Dow Jones Industrial Average is down close to 9%. With the market down today, this weeks decline is the worst we have seen over the past three years.
My advice, start buying high quality stocks in VERY small increments.
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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