Over 28 years of Financial Experience
Paul Drescher has been an active investor in the financial markets since 1980, and an advisor since 1982. In 1986, after two years of study and examinations, he became one of the first 4,000 in the U.S. to earn the Certified Financial Planner (tm) designation. In today's volatile and changing financial world, your advisor should have a depth of experience and knowledge to guide you through these troubled times. Read More....
|Strip Poker - December 2, 2011|
|Saturday, 03 December 2011 22:10|
The economic news from
Coordinated action by the
Yet this week’s action clearly shows that central banks are determined to avert a global melt down and catastrophe will be avoided at all cost. In other words, the world is a safer place to invest. Daddy’s got your back.
To use another analogy, the global economy will play out like a game of strip poker in a college fraternity basement. One European nation after another will fold its hand and sit at the table naked. But amidst the complaints and howls of derision, the beer will keep flowing and the cards will still be dealt. And at the end of the night, everybody will pick up their clothes and go back to their rooms, business as usual. Global capitalism is a wonderful thing, indeed.
Remember Iceland, the first overly leveraged western nation to default on its debt as a result of the 2008 financial crisis? In a vote of the people this past August, 93% of Icelanders voted to renounce their debt guarantees rather than pay for their bank bailout through higher taxes. These strong-willed Nordic folks have told their fat cat bankers and the rest of the world to take a hike, chips fall where they may. And so far, there has been little press coverage here in the
The Occupy Movement, however, is starting to lose its cool, following unnecessary violence by police forces on campuses and in cities across this great nation. In
They Got Bailed Out, We Got Sold Out. New York Times business report Andrew Ross Sorkin’s book Too Big To Fail brings readers inside the homes, offices, and minds of the biggest players of the 2008 financial crisis. The book humanizes some of the Occupy movement’s enemies while documenting the near melt-down of the global financial system. Makes a good Christmas gift, or doorstop, if you don't really like to read about this stuff.
Reason and compromise? The Congressional SuperCommittee failed to reach agreement on a deficit-reduction plan, and so Congress has one year to make a new deal or else deep cuts to military and social programs will take effect automatically. Is it too much to say that the stability of our society and financial markets hang in the balance, thereby begging for reason and compromise? Bah, humbug! One man and his multi-million dollar non-profit organization, Americans for Tax Reform, controls the votes of 279 Congressmen & Senators on tax issues. To view or read the CBS interview with Grover Norquist, follow this link:
Self-made billionaire Leon Cooperman, however, has issued a public letter to President Obama encouraging a calmer tone and following up on his 9-point plan to fix the budget and stimulate the economy. It’s not perfect, but it’s a nice middle ground starting point for negotiators seeking to solve the financial problems facing our nation. You can view his proposal here:
Amidst this swirl of financial and political wrangling, the stock market has been justifiably volatile, both up and down. I noted in Blast #29 on October 12 that the stock market reversed to the upside on October 4, but that “rallies above Dow 12,000 appear unsustainable at present”. Since then, the Dow Jones Industrial Average has closed and failed to hold above 12,000 three times. Today, once again, it fluttered, but did not fall below 12,000.
So, I am revising my prediction for the Dow Jones Industrial Average. There will be no collapse, there will be no crash. Markets will gyrate with an upward bias, fluctuating above and below Dow 12,000. There will be plenty of chills and thrills, but we won’t go off the tracks any time soon. Many stocks are cheap, and the future is not really so dark. If it is appropriate to your risk tolerance and investment objectives, consider buying the dips.
If I can be of assistance, do not hesitate to call.
Paul Drescher, CFP®