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Investment Outlook for February 1, 2008
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Mark Meyerowitz,Owner,
Meyerowitz Investment Management
Mr. Meyerowitz has been investing since high
school, in the 1970s.
After graduating from Brandeis University in 1977; Mark built up his small family business into a large local retailing company.
From the mid 1990s to early 2003, Mark was a broker with Smith Barney and with Edward Jones; two of the largest invest firms in the nation.
Mark and his family have lived in West Orange, NJ since 1987.
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Look Down the Road
 January 2008 was a very difficult month for investors, as near panic selling sent stocks sharply lower around the world. The good news about panic (panic buying and panic selling) is that the panic itself usually marks the beginning of the end of a trend.
Based on the price chart of the S&P 500, the bull market that began in 2003 appears to have ended in July 2007. Since July '07 we have been in a churning market that has been characterized by large downward and upward movements. The January 2008 sell-off could mark the midway point of the correction that started in July. If so, we have another 6 or 7 months of "healing" to go through before we move into new high ground again.
So what is causing the problem? In a word: confusion. There are many contradictory trends that are driving the markets crazy. Is the economy slowing down? If the U.S. economy is slowing, does that mean that the world economy will be hurt, or is the world now independent of the American financial engine? Why have oil and commodities remained so high?
What should investors do? The answer lies within you. What is your investment time frame? At this point it is silly to expect quick short term profits. Instead investors should have a two or three year time frame. In that way, we can take our time and create a portfolio based on long term trends, not short term emotion.
Take advantage of opportunities as they arise. Do not expect to buy at the bottom. No one can pick the bottom. Being patient means you need to be able to sit on some temporary losses.
An "ideal" portfolio would consist of US stocks, foreign stocks, commodities (such as silver, gold, oil, metals) and currencies.
One important trend to try to catch is the "New America." The US is becoming an important exporting nation.
Warning: 2008 is a big political year. The media and the political parties have agendas. Many journalists and certain politicians believe that faulting the US is in their political interests. One thing to keep in mind: America has always overcome financial and political adversity. Our free enterprise system is the most creative and successful in the world.
--Mark
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"My goal is to manage your investments so that you have enough money to lead the life that you want to lead. Your account with my company is personalized blending different types of investments in a way that is right for you. The growth and safety of your account is our only focus!
-- Mark Meyerowitz |
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