If you are heavily invested in stocks, you probably won’t like what you’re going to read, but you should pay attention! According to USA TODAY, there are unsettling similarities between the current state of the markets and their position at this time last year. You may recall that, early last summer, the Dow Jones average fell 13.6% before beginning a gradual recovery!
Among the factors behind last year’s market drop were fears of a “double-dip” recession, high, long-term unemployment and worries about the European debt crisis. Do those problems sound familiar? They should. We are facing those same challenges today. As if these aren’t enough, we are currently watching as the President and Congress attempt to strike a deal to prevent the U.S. from defaulting on its obligations for the first time in history. From an investor’s standpoint, this situation appears to be lose-lose; either the U.S. defaults, which would be catastrophic for the market, or the government continues to borrow money hand over fist, leading to future high inflation.
There are plenty of reasons to worry about the state of the stock market. While it’s impossible to exactly predict the future, many experts agree that a 10% downward correction is very probable.
These events remind us that the rules of investing have changed forever. Twenty years ago, simply investing into an index fund may have been a sound strategy. Unfortunately, since 2007, international equity markets have been incredibly volatile. Many people’s life savings disappeared down the drain as the stock market plunged. While the market has recovered to some extent, there is absolutely no reason to suggest that it is permanently back on course.
What can you do to protect yourself from the twists and downward turns of Wall Street? We proudly offer the following safe, proven solutions:
1. Go to: http://www.mymoneyalarm.com/ and register for our unique educational service, which sends you market change signals prior to the critical decision points. These signals alert you to changing conditions and guide you to the best performing mutual fund choices. These signals also make you aware of the best time to move your money out of equities. This unique program doesn’t require you to move your money from your existing account(s) to a new IRA or 401K. You simply enroll in our educational service which then provides you with the proper signals that help you grow and protect your hard earned savings. This service works for IRA’s 401K’s, 403B’s, mutual funds and college savings accounts.
2. Our unique design, The Personal Protected Pension Plan™ provides you with security from market uncertainty because your money is only linked to the market’s gains and is never actually in the market. As a result, our clients never lose either their principal or their gains. This plan design avoids the dual threat that higher taxes and inflation pose to your retirement income. If you’re tired of daily worrying about the market swings, higher taxes and inflation, contact us for more information. Let us create a plan to safely grow and protect your wealth! To schedule a no cost no obligation Personal Protected Pension Plan™ consultation contact our Client Concierge, Millie, at (866) 998-7699 or email her at millie@thechuckoliverteam.com
Monday, August 15, 2011
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