Experts and analysts have been predicting a stock market crash sometime in 2011 for months now. To what extent, no one could know for sure but there was speculation. When this happens, those more seasoned in the securities industry advise people to not panic; just stay calm and recognize that many fortunes are made in markets like this.
In this article titled ‘Is It Better or Worse to Start Investing in a Recession?’ author Joshua Kennon paraphrases a response from Warren Buffett when asked the above question. Mr. Buffett basically noted that the market may go up, the market may go down, the economy may fluctuate, but there will always be intelligent things to do.
With a career in the securities industry dating back to 1977, our CEO, Robert Bragg has observed many turns in the financial markets. As a service to Guardian’s investor group and subscriber base, the following editorial opinion was emailed to them on Sunday evening, August 7, 2011.
Out With The Old – In With The New
Valued Guardian Member,
About a month ago, I told my staff and a few of my “Big Board” and NASDAQ investors, the Dow would be coming down and breaking through 11,500. These are the same people in the Fall of 2007 I told to sell their real estate holdings, their stocks and short the subprime financial instruments. Well, here we are again. After what happened this last week, the institutions and hedge funds now are cash laden and waiting for others to sell so they can take advantage of the lows in securities. Gold will go up further but it will be the next bubble.
The broad swings on Friday I believe were some short covering and now we are going to see another downtrend on Monday lead by “High Frequency Trading”. This will also be triggered by short selling. With the help of the media along with the indecisive and divisive antics of our government; this has fueled this slide. Wall Street is now saying, “We have sold for profits, now let’s sell this market short, so we may scare John Q. Public into selling into our short position.” The “Fear Factor” is in play.
Let me tell you that now is not the time to fear, but to take a look where YOU may take advantage of this situation and not just sit on the sidelines in fear and/or confusion. You need to take charge and make your own financial destiny happen. If you don’t, you will find your current dollar will not buy what it does today. Being conservative will equate to devaluation of your net worth. I’m hoping I may help direct you in that area.
It was my opinion, no matter what happened with the jousting that went on between the GOP and Democrats, this market was coming down. It was obvious there would be no happy medium that would prevent this adjustment. There is no quick fix. Unemployment is through the roof, gas prices are too high and a number of other factors that are International have attributed to this debacle.
The smart money started taking profits last May to get cash heavy. It’s time for, “Out with the old and in with the new”. If you haven’t taken profits or are in an “aged” investment with lackluster performance, it’s time to sell and find something new that hasn’t been beat up over the last three years. Right now I would be looking for companies that have been publicly traded over the last 10 months or so, that may be a little obscure but have a business model and product that would justify strong future fundamentals. Companies that show no revenues are not going to be in favor for the speculative market. It’s important to find a company in a sector that is “in favor” with what is salable right now and would attract investors moving their money around.
Sometimes it is very hard to make the decision to invest in a company that shows very little volume and that has been trading sideways; but this is the type of company that cash heavy investors will be looking for in this market.
Don’t try to peg the top or the bottom. Markets go up and down.
Not only do I want, but need to keep our investor group. You are the core of our business. We want to help you make money and buck the trend of this current market. If you notice, many other sites that are in Investor Relations do not provide a telephone number or a contact person. Now more than ever, it is very important to discuss future financial matters. I am here for you to consult with. That is what I do.
I saw this economic situation coming and that is one of the reasons I chose Organic Plant Health, Inc. (OPHI). This is a company with great products that are relevant for now and the future. Their management is truly devoted and OPHI has revenues.
Organic products used to be used by so called “Kooks” but now with current research which is more readily available, they have become mainstream and the public can now see how important it is to use and ingest organic products. Many have turned to cultivating their own organic gardens and large organic farms are on the increase. Those that are accustomed to using these products recognize the health and longevity benefits and will cut out other things in order to keep eating and using organic products. This is proven.
I urge you to take a look at the links on our site. I will be researching other companies but right now I find OPHI has the capability to provide significant profits for its shareholders.
Read more: Out With The Old - In With The New: Now Is Not The Time To Fear Investing | Guardian Financial Services Group http://guardian-fsg.com/blog/2011/08/09/out-with-the-old-in-with-the-new/#ixzz1f23mip00Thank you,
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