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These Are the Times that Try Men’s Souls…

August 5th, 2011 by John Anderson – Be the first to comment
Posted in Investing, Market Turmoil
 

Perhaps the situation is not as dire as they were when Thomas Paine penned those words in 1776.  However, with the U.S. stock market falling for eight of the past nine days and dropping 8% during the past week, these are certainly times which test our tolerance to look past the short term. After yesterday’s 5% drop in the S&P 500, the index is now down for the year, and phrases such as “market turmoil” and “global sell-off” are dominating the media outlets.  It is the skilled investor who can stick to her long-term plan in the face of short-term pain.

As a fellow investor, I understand the uncertainty you’re feeling.  We certainly don’t like to see our portfolios fall. We here at Cypress Wealth are paying close attention to the events that are causing a stock market sell-off unseen since the financial crisis of 2008.

Yet our advice to you is: take a deep breath, stay calm, and keep your emotions in check. Restraint can be difficult, but successful investing requires it. In times like these it is important to keep our long-term focus and remember that we are investors and not speculators.  In my opinion, the recent and dramatic sell off is driven more by fear than any real data.  While none of us have a crystal ball and no one can predict the immediate future, there are plenty of reasons to look past the current conditions.  As our last earnings season showed us, most U.S. companies are sitting on solid books with large piles of cash.  The economy while not on fire, is showing slow and signs of growth and will muddle through over the next several months.

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Standard Disclosure:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. Investing involves risk including loss of principal.
 
 

Seven Headlines to Beat the Gloom

August 4th, 2011 by John Anderson – Be the first to comment
Posted in Outside the Flags
 

Debt crises, sovereign risks, double dips and banking strains: Page One headlines can make for depressing reading these days. But being a smart news consumer—and smart investor—means keeping an eye on the lesser headlines. Here are seven you may not have seen:

  • Robust Growth in Germany Pushes Prices—Analysts see a strong chance that German inflation will head towards 3 per cent by the end of the year against a backdrop of robust growth in Europe’s biggest economy. (Reuters, July, 27, 2011)
  • Brazil Domestic Demand Still Strong—The Economist Intelligence Unit says economic growth in Brazil surprisingly picked up speed in the first quarter, challenging the government’s efforts to cool the expansion. (EIU, July 6, 2011)
  • Japan Retail Sales Top Estimates—Japan’s retail sales rose 1.1 per cent in June, exceeding all economists’ forecasts and adding to signs the economy is bouncing back from an initial post-disaster plunge. (Bloomberg, July 28, 2011) read more »
Standard Disclosure:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. Investing involves risk including loss of principal.