Just think of the change in SEC BUYBACK policy allowing corporation to BUY on the CLOSE and OPEN. Right now cheap future wealth and "COVER" of future 401k and stock option plans are "making" "money" for almost all the S&P 500 corporations for sure. Since once the market recovers, these cheap capital expenditures, because of the foresight to BUY LOW, will carry on their books as large CAPITAL ASSETS or accrues to treasury shares and shareholder equity that is ANTI-DILUTION added effect of increasing demand for less supply of traded shares available. That is right, you do not have a loss unless you sell. The market fluctuations, and this has admittedly been the biggest over the last year in market history, are mere paper losses. Sell and they are real losses. Wait for the market to recover with the economy recovering, or better yet, BUY LOW, DOUBLE DOWN, INCOME AVERAGE, and you will have quite a large paper profit. But it will only be a real profit if you then, next year or so, SELL HIGHER. They did not teach me that as part of any MBA course, my Daddy taught me this when I was 7. I learned from the Kennedy capital gains FISCAL POLICY that saved the markets then, and as you all know I feel Greenspan has failed us all with his failed MONETARY POLICY. I see more FISCAL POLICY stimulation that will again save the economy and the markets, and then, paper gains and paper profits may be sold or they just maybe rolled into more investments. The US MARKETS are and historically have always been, the place to be fully invested. Now just as always, we just wait for another 1 or 2 of those 40 weeks that push markets to highs that occurred again and again over the last 70 years. Can you afford not to be invested this week or the next...when might it be, no ine really knows....it is just going to be sooner now than it was last week, not IF but WHEN.
I am,
Truly your$,
-Crystal Ball |
