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Monday, October 20, 2014
Man, I'm tired of the complaining in the last few weeks...
Everyone is worried the U.S. economy is weak... and that stocks therefore have to fall. Everyone sees the recent volatility in the markets as proof of this.
I disagree – completely...
The way I see it, this moment – right now – is the absolute perfect moment to be in as an investor.
Conditions in America are perfect... It's a Goldilocks economy right now – not too hot, and not too cold... It's just right.
You see, if the economy was too hot, then the Federal Reserve would be hurrying to raise interest rates. But it's not too hot. It's just right.
Right now, there's a heightened sense of fear in the markets. That's perfect, too... Markets actually need fear to have room to move higher. The level of fear is just right for higher prices.
Before you give in to your fears, let me give you a dose of reality here... where "reality" is not nearly as bad as the news makes things out to be.
Three charts tell the story...
Check out our Goldilocks economy right now... It's just right for higher stock prices. Not too hot, and not too cold:
Contrary to what the fear mongers would have you believe, the unemployment rate is actually pretty darn low compared with the last 40 years. It is just right.
You don't want to see it go to 1999s "dot-com boom" levels, because the Fed would raise interest rates if that happened. Today is just right. Take a look:
So we have our perfect little investing environment with our Goldilocks Economy... Don't forget about the one little piece of magic that should continue to turbocharge our investments higher... Interest rates at zero:
The investment environment right now is perfect...
You have a perfect economy (growing, but not growing too fast). You have a perfect unemployment rate (low, but not too low). And as an added bonus, you have zero-percent interest rates – that really should be higher – but the U.S. Federal Reserve is too scared to move them higher yet.
It doesn't get any better than this.
Stop waiting for a better moment. Seriously, it doesn't get any better.
Quit your complainin'.
And get on to some real investin'.
Be bold. Be contrarian. Step up. Chances are good you'll be glad you did...
"We've been bullish for years," Brett Eversole writes. "And even though it's scary out there, history says we need to stay the course. Now isn't the time to sell." Get all the details here: Why This Selloff Is the Next "Buy the Dip" Opportunity in Stocks.
Dan Ferris says that "when it comes to natural resource investments, you're either a contrarian or a victim... and victims are selling today." So last week, Dan shared a guide to the top financial tools and skills you need to be a good contrarian. Learn what they are right here: How to Make a Fortune in Resource Stocks... Starting Today.
NEW HIGHS OF NOTE LAST WEEK
U.S. 20+ Year Treasury Bond Fund (TLT)... Treasury bonds
Invesco Value Municipal Income Trust (IIM)... muni bonds
NEW LOWS OF NOTE LAST WEEK
iShares Germany Fund (EWG)... German stocks
iShares Italy Fund (EWI)... Italian stocks
iShares Austria Fund (EWO)... Austrian stocks
iShares France Fund (EWQ)... French stocks
New Ireland Fund (IRL)... Irish stocks
Aberdeen Chile Fund (CH)... Chilean stocks
Market Vectors Gaming Fund (BJK)... casino stocks
PowerShares Clean Energy Fund (PBW)... clean energy stocks
iShares U.S. Home Construction Fund (ITB)... homebuilder stocks
United States Oil Fund (USO)... crude oil
BP (BP)... oil stock
Devon Energy (DVN)... oil and gas stock
Cameco (CCJ)... uranium stock
eBay (EBAY)... online auctions
Pfizer (PFE)... Big Pharma
McDonald's (MCD)... fast food