I got a few phone calls from folks asking if they should take a time out and go into cash for the rest of the year because January folded like a cheap wet suitcase and lost ground by almost 5%. The historical numbers on how January fares and so goes the year extend back to 1897. Someone actually had time on their hands and calculated what would happen if an investor started with $10,000 and invested for the full year only if January was up compared to investing no matter what. The January up only barometer grew to $496,209 , if you started in 1897 and by staying the course no matter what grew to $979,220. So like my New York friends say, forgettaboutit. A negative January shouldn't;t scare you from an entire year of investing.
In 2009 FDIC closed 140 banks. In January 2010 15 U.S. banks were shuttered. Six of those failing cost FDIC and ultimately taxpayers almost 2 billion dollars.
If you want to know how big the three largest domestic banks - 24% of all deposits and they operate more than 15000 retail branches.
Tighten your seat belts through February. We're not re-tracing to March 09 but with the dollar strengthening, commodities losing ground, unemployment about to be revised up, inflationary trend flat along with interest rates some feel the markets are slightly overbought.
Evil Whispers on Emerging Markets and BRIC. January not kind to gold, at a three month low, oil below $73.00, Asian lost 5% and Latin America down 4%.
The President, with his State of the Union speech, reaches across the aisle. Why it took him and Congress this long to understand how important jobs are to this recovery is beyond me. Look to infrastructure stocks to benefit.
A new auto manufacturer IPO soon to appear. First since Ford went public in '55'. This time, however, no gas tank.
Berkshire Hathaway became a member of the AS&P 500 with Burlington Northern purchase. Will the gecko ride in a Pullman to the insurance commercials? President selling high speed rail to states and offering buckets of dough. Promises 20,000 jobs per state. (Don't laugh at Warren)
Jobs continue to be problematic. Home Depot plans on closing three stores and laying off 1000 employees.
Las Vegas was fastest growing city now leads the nation with five times the foreclosures.
Final word- stick with what you know. Stay invested, buy quality, add dividends. Recessions like all things ends. Patience in investing as in poker wins.
If you have any questions about this blog call Paul Stanley @ 877 783 7080 or write pstanley@westminsterfinancial.com. Add a friend to our e-mailing notification list by doing the above.
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