The markets are in turmoil and investors have lost trillions in valuation. What's next for investors? S&P downgraded the nation's credit rating and has been trounced by the left leaning media and organizations. Bill Gross who manages the PIMCO bond fund, courageously backed the downgrade. It seems that there are people in government and in the media who want the public to be led by, not fed, with the information that is publicized. Trying to hide or mislead the public as to what is actually happening in our economy, is not fruitful for anyone, it only delays the inevitable results and possibly magnifies the panic as investors head quickly for the fire doors. Without good information people can't make good decisions. We have put our trust in the media and they are taking their customers for granted. Try finding an article that is not biased one way or the other. What we need today is good quality truthful and investigative journalism. Just the facts Ma'am as the Dragnet detective, Sergeant Joe Friday, would say. I hope that we can get the truth from the media that will enable its readers to form quality decisions about their financial futures.
If you've bet most of your retirement on the market, then you're probably quite stressed about the situation that is occurring in the financial markets. We often hear that it takes risk to make money and the more risk you take the more money you can make. We also hear that the investor needs to think long term and ride out the ups and downs in the market. Then, if that is the common principle of these investment houses and community, why does the market swing so wildly. Maybe the investment houses that sell these investments to us don't believe in their own wisdom. Perhaps--we shouldn't believe them either. If you look at the people who really make the huge money, they often take very little risk with their own money and, instead, they put their investors' money at great risk. They make money when the market is going up and when it is going down.
Sadly, there is no bottom in sight as everyone tries to exit the fire doors at the same time.
Gold has been doing well and it seems to be a safe haven for many investors. Those who fled early to this safe haven are in the money. We are in unstable economic times and we need to get back to the basics. Here's some food for thought, look at the information on the Mises Institute website, its another perspective focused on Austrian economic theory. They have some interesting information and facts.
Even Warren Buffet seems to be making some big bets on the market. He is a long term investor but there is one issue that I think may affect his excellent stock picking prowess. He is becoming biased. Prior to this it was about the numbers, buying good value and holding for the long term. Recently, he has been making predictions that look to be personal and politically motivated. Only time will tell. Short term though his picks aren't doing very well. But, then again, not many investors are.
The engine that drives an economic recovery will be in the small business community. The success of the nations business community and allowing them to be profitable is essential to foster a growing economy. The entrepreneur is the solution. If our policy makers are sincere in their desire to find a solution to our economic woes they should create economic policies that fosters growth in the small business community.
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