Podcast Summary
Written by Dani, May 17th, 2012
If you didn’t have time to listen to the teleseminar last week (which you can still download here), here is a “cheat sheet” of the key points from it.
We spent some time talking about the risk in the markets, and reminding everyone of the “European Blind Side“. We also mentioned the three key areas that we are expecting to invest this year, and expect to see grow into wise investments:
With these key strategies, an understanding of the risk in the market and a willingness to be patient and buy wisely when everyone else is panicking in the markets, we think that investors will have a lot of growth opportunities this year.
As always, here at Fabian Wealth Strategies we are available to discuss your portfolio and help you make these decisions in the best way possible. Call us at 800-391-1118 for your free portfolio review.
Note: The information expressed in this seminar is for educational purposes only and should not be construed as a recommendation to buy, sell, or hold any investment security. Doug Fabian is a registered investment advisor representative. The opinions expressed in the seminar are not considered personal investment advice. Consider the risks, fees, and expenses before making any change to your investment portfolio.
Written by Dani, May 16th, 2012
We’ve been talking about the European debt crisis for several months now, but we’ve recently coined the phrase “European Blind Side”. You might wonder why we’re so concerned about investors being caught off-guard by developments in Europe, so we thought we’d use an analogy from out here in California.
We see it all the time – it’s a sunny day on the beach, and people have driven in from all over to come to the ocean. Tourists and locals alike are stretched out on blankets in the sand with coolers and umbrellas, ready for a great day. However, it inevitably happens that those who aren’t as familiar with the water, or who just don’t pay attention, will place all of their beach-day accessories too close to the shoreline at low tide. When the tide starts to move in or a big set of waves appears – and they don’t even have time to react – their towels are soaked, their cell phone has gone for a swim and their beach day could very well be ruined.
We think that this is what will happen to many investors who aren’t watching Europe closely. They feel lulled to sleep by the “sunshine” of relative security and up markets here in the U.S., and may very well have their holiday ruined by a big, ugly wave from Europe. Investors who aren’t paying attention to Europe are going to be hit hard and not know what happened or why.
The moral of this little analogy is simple: pay attention and stay educated and aware. Listen to our recent teleseminar for more in-depth analysis of what’s happened in Europe and what is soon to come, and make sure that you are prepared to preserve your capital and keep your towel dry, so to speak.
This is a podcast summary. For more complete details, please listen to the full podcast here.
Written by Dani, May 15th, 2012
Lately, Monday mornings have been busy with news, and this week was no different. We are seeing a lot of change in the world right now that could change our investment portfolios, and we do our blogs and podcasts in an effort to help investors stay educated and aware. We think it’s essential to stay on top of the latest happenings and understand how it impacts the markets, so let’s a take a look at the news:
Despite what seems like an onslaught of bad economic news, we believe that growth opportunities are in front of us. We think that investor’s highest priority should be capital preservation, and we are waiting for our buying opportunities to come later this year.
This is a podcast summary. For more complete details, please listen to the full podcast here.
Written by Dani, May 09th, 2012
Here at Fabian Wealth Strategies, we’ve talked a lot lately about the European debt crisis, so you may be wondering why we would call this a “blind side”. Unfortunately, we believe that most American investors have little to no idea what is happening in Europe, and most investors are woefully unprepared for the trouble that is here and what is still to come from that sector of the world.
There are serious implications of the current and coming European economic contraction, and those have not yet been realized in the markets. This should cause concern for investors for obvious reasons: volatility is increasing and time is compressing, as the markets move faster and the swings get wilder.
As we watch the European situation, we continue to stress that investors should keep an eye on their risk exposure and have an exit strategy for their capital. We know that many U.S. investors are concerned about the U.S. debt and deficit, but the European debt and deficit is what is going to have serious implications to your portfolio in the short-term, and, because it is a less well-known problem, it has more opportunity to wreak havoc on your portfolio if you’re not careful.
So far, the European Union’s strategy for dealing with the debt crisis in Europe has been austerity (meaning getting budgets under control and reining in government hand-outs). Most of the economies in Europe are not globally competitive, and as a result, many citizens are reliant on government for many social services and basic needs, making austerity a difficult path to choose.
As a result, this weekend François Hollande won the French election over former president Nicolas Sarkozy, which means that austerity will probably once again take a back seat. Hollande is a socialist and has already promised to raise taxes to up to 75% on the wealthy, borrow more money and continue social programs for French citizens. Hollande wants the austerity strategies dictated by Germany eased in France, meaning that he is going in the opposite direction proposed by Sarkozy and Germany’s prime minister, Angela Merkel. It will be interesting to see if this new tactic works for the markets and how risk is affected by these new strategies in France.
Greece also held an election over the weekend, and the Greek people are struggling with austerity measures as well. There is fear that Greece may default on its bonds, and this is a serious hot-button, short-term issue, that we believe will really affect that markets.
The bottom-line is that even though Europe is far away and seems like something we shouldn’t worry about, the European Union is a huge factor in the global economy and the politics of public debt will make an impact on the markets. Don’t allow your portfolio to be blindsided by European troubles – if you’re not sure how to handle this uneasy market, please call us for a portfolio review at 800-391-1118
This is a podcast summary. For more complete details, please listen to the full podcast here.
Doug Fabian’s next live public speaking event will be in Las Vegas at the Money Show, where we’ll have about six different opportunities to present. Please check out moneyshow.com to register or for more information.
Written by Dani, May 08th, 2012
If you want to grow your investments, get a well-rounded view of the markets and understand these uncertain times, you want to sign up for our teleseminar today. You can sign up HERE.
Also, please check out the other resources available for our readers:
New ETF report
Hear Doug Fabian live at the Money Show in Las Vegas next week
Portfolio reviews available
Life insurance and annuity reviews also available
Written by Dani, May 02nd, 2012
As many of you know, we have a comprehensive list of ETFs on our website. Our latest edition of the Fabian ETF report recently came out, summarizing 1200 funds and highlighting 100 new ETFs for 2012. To get a copy of our ETF report, click here.
Another great way to hear our strategies is through our exclusive teleseminars. Our next teleseminar is titled: Strategies for Growth in Uncertain Times, and will be presented by Doug Fabian, on Tuesday May 8th at 1:00 p.m. Pacific (4:00 p.m. Eastern).
If there is one statement we can all agree with – we are living in uncertain economic times. Half of the countries in Europe are in recession, China is feeling the effects of slowing global growth, and the U.S. is struggling with trillion dollar deficits that are needed to keep the economy afloat.
In what will likely be a very challenging summer for the markets, having the right strategies in place to both preserve and grow your capital is absolutely critical to your investment success. Now is the perfect time to decide how you should position your investment dollars to achieve your financial goals for the remainder of 2012.
In this special one-hour presentation, you will learn:
- Doug’s three favorite growth strategies over the next three years.
- How to stay ahead of inflation with your portfolio.
- A global economic update and how world events can impact your money.
- The latest product innovation in the exchanged traded fund world.
- Plus much, much more
While this teleconference is FREE, attendance is limited, so please be sure to register HERE and reserve your spot today.
Written by Dani, May 01st, 2012
We all know the phenomenon of “sell in May and go away” in the stock market. But is that really an effective strategy? Here’s a couple of articles we read recently on the subject:
From CNBC:
“The argument for “going away”: Over the last 12 months, investors who held to this belief made out pretty well. From May 1-November 1, 2011, the Dow lost 6.7%. From November 2011 through April 27, 2012, it gained 10.7%.
If we open a historical window – specifically, The Stock Trader’s Almanac – back to 1926, we see the S&P 500 rising 4.3% on average during May-October and gaining an average of 7.1% from November-April.”
From Stock Trader’s Almanac:
“On Wednesday April 18th, Jeffrey Hirsch provided election year statistics for the “Worst Six Months”, May to October. The results of that research began in election year 1952 and ran through 2008. 1952 was chosen as the starting point of the study primarily because the U.S. economy (and the global economy) was substantially different prior to that year than now. From 1901 to 1951 farming made August the best performing month of the year. This is no longer the case and August is now the second worst month of the year. In response to inquiries about years prior to 1952, the table from that post has been updated to include all election years from 1904 to 2008.
By including an additional 12 election years in the table, the results differ greatly, but this was expected because, Augusts’ top-ranking performance, the roaring twenties, a Great Depression and two world wars made those years significantly different (a great understatement). In fact, “Sell in October” would have been appropriate. Prior to 1952, May-October was up 32 of 51 years with an average gain of 3.3 % while November-April was up 29 of those same years averaging a gain of 2.4%. Since 1952, November to April (as of today) has been up 47 times and down 13 with an average gain of 7.5% while May to October has been up 35 and down 25 with an average of just 0.2%.
Before deciding if “Sell in May” in this election year is in the best interest of your investment objectives consider this; since 1940, there has been only one double-digit gain from May to October and the average gain is a paltry 0.3% (excluding the best and the worst, the average is 1.2%).”
Graphic from Stock Trader's Almanac
We believe that investors should be careful to not invest or pull their capital based simply on a season, time of year or “gut feeling”. This is definitely an interesting and risky time in the markets, and it’s important to know about the trends and thought-processes – but not necessarily to follow them.
Thanks for reading our podcast summary. If you want more details on what is discussed on the blog, please listen to the full podcast here.
Written by Dani, April 26th, 2012
We expect to invest in emerging markets this year, and want our audience to be aware of changes and trends in this area. Over the last 10 years, here’s what’s happened in emerging markets:
- 2003 ended the bear market and began a new bull market in the U.S. – 400% increase in emerging markets that year.
- 2007-2009 emerging markets fell 65%
- 2009-2011 emerging markets moved up 135%
There are over 100 Exchange Traded Funds for the emerging markets. You can invest broadly or even focus on a single country or industry group using ETFs. We think this is incredible, as it gives investors a chance to invest in as specialized of an area as they like.
While established markets like the U.S. and UK have had centuries of equity investing, the emerging markets are relatively new, and have much greater earning potential than developed markets. We believe that emerging markets offer great potential, and that this is an area that you need have in your portfolio long-term.
This year we plan to invest in emerging markets, but our approach holds that we do not want to buy until the rest of the market starts to panic. When that happens, emerging markets will go on “sale”, and we think that is the best time for investors to jump at this opportunity. If you have questions about when to invest and why, please call us at 800-391-1118.
Thanks for reading our podcast summary. If you want more details on what is discussed on the blog, please listen to the full podcast here.
Written by Dani, April 25th, 2012
Politics are swinging between left and right as the European Union tries to deal with their debt crisis. Watching this news unfold is important for investors – we think it’s important to know how austerity, deficit spending, taxation and other economic news affects your portfolio.
That said, here’s some of the news we’ve been following about the political and economic climate in the Eurozone:
Just to bring this a bit closer to home, local politics affects our portfolios as well. Here in our home state of California, we have similar deficit, taxation and spending issues to the EU. Here’s a few of those news stories:
Be careful in the markets and stay aware of how politics affects your portfolio – listen to our podcast every week for up-to-date details and analysis, or call us today for a personalized consultation at 1-800-391-1118
Written by Dani, April 24th, 2012
French elections and Apple computer are the two big issues in the markets this week. Here’s why:
- APPL has gone into a correction this week and last week, losing about 5%.
- On Sunday, the French held their presidential elections. Sarkozy and Hollande are the two run-off candidates, and this matters to the markets because each candidate has such a different approach to how to fix Europe’s debt crisis.
We need to be paying attention to the elections in France and the condition of the European debt crisis because it will undoubtedly have effects on our economy and markets. This article from The Week gives a good soundbite for why we are bringing this up:
“What has Hollande promised to do as president?
He has pledged to increasegovernment spending to spur economic growth. That position is the polar opposite of the policy Sarkozy and German Chancellor Angela Merkel have adopted, encouraging EU countries to cut spending to get their finances in line. The duo, who have worked together so closely that they’re referred to jointly as “Merkozy,” have shaped the EU’s response to the debt crisis, which shows no signs of abating.
Would Hollande’s proposals hurt or help Europe?
It depends whom you ask. Some economists say it ‘is likely to make matters worse, possibly sending financial markets into a tailspin that invites further chaos,’ says Steven Erlanger at The New York Times. Others say boosting economic growth is the key to getting Europe out of its funk. ‘An Hollande victory would shake things up, and offer at least a possibility of something better,’ says Paul Krugman at The New York Times. Plus, some European countries may be starting to turn against Merkozy’s prescriptions: The Dutch government will likely collapse over resistance to new austerity measures, and Spain and Italy are also siding with more pro-growth policies.”
We are keeping an eye on the news from Europe, and it will be interesting to see if France continues to embrace austerity, or if they spend more in an effort to get out of their current debt crisis.
Speaking of paying attention, we asked our readers and listeners last week if you have the right life insurance policy or annuity. This is an important item to keep in mind, and we encourage you to learn what you need and why. Today, I am offering you a FREE insurance and annuity consultation. If you would like to have one of our experienced professionals research and analyze your life insurance policy or annuity contract, then simply call our offices at (800) 391-1118, and we’ll set you up for your FREE life insurance and annuity review.
Thanks for reading our podcast summary. If you want more details on what is discussed on the blog, please listen to the full podcast here.
Doug Fabian’s next live public speaking event will be in Las Vegas at the Money Show, where we’ll have about six different opportunities to present, and a special opportunity for our subscribers. Please check out moneyshow.com to register or for more information.
