Should You Seek Advice Today

Originally posted 5-20-2010

This morning may be an excellent time to call your investment manager if you are still in the stock market. Why do I say this? The DOW futures are close to it’s 200 day moving average at 10,200. We have lost almost 10% since the ‘one day’ mini collapse almost ten days ago. I spoke to a close friend this morning and he recently read a report (like this week recently) and it suggested (okay, WARNED) that we could see 1,000 point drops in a day – with no ‘fat finger’ mistake or whatever that was. All I’m saying is the market is pretty volatile and you better pay attention to the financial news because there are many forecasters warning that the stock market could crash to 5,000 or less (one said it needs to go to 2,000). I’m not sure how that will affect your IRA, 401K or investment portfolio, but the last stock market crash (GREAT DEPRESSION) took TWENTY-FIVE years to recover. I don’t know about you, but I may not have 25 years.

This morning, there are strikes in Europe again because the citizens don’t wnt reductions in their benefits. Think those issues and subsequent civil unrest won’t happen here? There is a teachers union asking for a $165 billion bailout of their pension fund and there is a nurses union striking because they need a $100 billion bailout for their pension fund. WE as Americans contributed to the one trillion dollar bailout in Greece (through the IMF).

One other note, a big blow to our “recovery” - which I have never believed was happening, is there were an additional 471,000 new jobless claims, the largest in three months (report comes out today).

Like I said, today could be a good day to call your adviser. Have a great day!