This is a crucial time for individual investors. We have talked with many of them over the last few weeks. Few have a clear plan of action. There are three distinct groups.
- Some have abandoned equity investing. Cash on the sidelines has never been higher.
- Others are interested, but frightened off by the incessant negative commentary. Jim Cramer has joined the party on this one, endorsing a theme we have pursued for many months.
- A final group is discouraged that they did not catch the March bottom. They are worried about being too late.
Meanwhile, there is little help on the Internet. Sure, there are many sources, but they are all seeking higher hit counts and ad revenues. One might as well get investment advice from Dancing with the Stars!
Advice for Investors
With this problem in mind, we are going to focus a few more articles on the individual investor problem. Let us start with the biggest current issue: Politics.
It is great to live in a free country. We can all have political opinions and enjoy freedom of expression.
Here at "A Dash" we recommend political agnosticism. In the Bush era, many thought that we were of staunch GOP upbringing (perhaps a good guess?). In recent days, others suggest that we are Obama apologists. OK.
Our actual philosophy is that we want to earn investment gains for clients regardless of the political circumstances. We do this by analyzing policies and determining likely outcomes, just as we did in the old days. It is a lost art.
Most people have a political agenda. They get on TV or get a writing gig and confuse politics with analysis. This is no way to make money.
Starter Question
Today's big story centered on 100 days of stimulus. We plan some detailed analysis, but let us consider the first reactions. Readers have a clear choice:
Are you focused on politics or investments?
Some critics said that the stimulus plan was poorly designed, too expensive and mis-directed. Others said that it was just getting started.
What are your feelings? Are you expressing heart-felt political opinions or are you trying to make money?
