A Little Wisdom to share…

“Don’t use words too big for the subject. Don’t say “infinitely” when you mean “very”; otherwise you’ll have no word left when you want to talk about something really infinite.”—C.S. Lewis

Making some observations of the market, and wondering if it’s “very” high, moving “infinitely” higher, and trying to guess what’s driving these moves.  There are experts on both sides of the fence – the “Go Long’s”, and the “Short the market at these highs”. It’s a zero-sum game: you gotta have Buyers and Sellers, aka Winners and Losers, aka Market Makers and Novice Traders. Which one are you?

Some S&P 500 notable numbers:

High 1549 Oct. 31, 2007

Low 735 Feb. 27, 2008

Current 1436 Sept. 12, 2012

They really mean nothing, except if you put all your money in at the low or the high. However, not many people realistically invest this way – think “buy low, sell high”….. it sounds easy, yet not many are executing this “easy plan”. Is the ongoing, depressing economic conditions still a factor for you? What about your liquid cash/savings sitting in CD’s, money market, or at best, the “high-yield online banking” accounts? How will the potential QE3 affect the market this time? [rises each time Ben hits that digitizing/”we don’t print money” button]  Should you worry about inflation? Deflation? Check out the debt clock on my Home page and really ponder how we (or our grandchildren) are ever going to pay this off, and the consequence on our economy.

Is the market going to the next Supply level or will it reverse? [I highly recommend the Sam Seiden webinar at  http://preview.tinyurl.com/bok8skq for a solid lesson in Supply-Demand Odds Enhancers].

If your thoughts are spinning like a tornado, perhaps you might want to consider some safe money options for a portion of your portfolio. Although not all Equity Index Annuities are built the same, the best ones can be a “very” prudent asset to preserve some funds for guaranteed principal & growth, guaranteed income, and guaranteed increasing death benefit for your spouse or family. The superior contracts even assure you that fees are only charged when your account has increased in value above and beyond the fees. Certainly provides peace of mind for most folks.

I suggest that you keep one eye on QE3, October, and the election, and the other on your 401(k) and other equity investments.