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2007 Review: Where to Invest Now?
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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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 2007
was a tough year. Greed ruled the first half- rising oil and
gold prices, and rising stock prices that were accompanied
by a large number of huge corporate takeovers that were little
more than debt-ridden takeovers.
Fear ruled the second half of the year. The junk mortgage
market, which had financed single family homes into a speculative
frenzy, fell apart as borrowers defaulted on their loans.
Unfortunately these junk mortgages were previously bought,
repackaged and resold by the geniuses in the large brokerage
firms. This had the unhappy effect of spreading our junk mortgages
around the world, which in turn caused a crisis in confidence
in our free market system.
Where are we now, New Year's Eve '07? It seems that most of the
bad news and write downs due to the junk debt business is
out. Stock prices seem to have stabilized for now. But more
important than the short term tensions are the long term,
fundamental changes that are taking place.
The U.S. may no longer be a consumer-driven economy. We are
turning into an export economy- agriculture and high tech
manufacturing are enjoying a golden age. New home building
may be in a depression, but the number of jobs is at an all
time high.
A few years ago, commodities had little value. Now steel,
gold, nickel, and other metals are in short supply, thanks
to the ever-increasing demand created in China, India, and
around the globe.
Most importantly, the world is following the American model
of free enterprise leading to a better life. Around the world,
people want single family homes. They want to own businesses.
They want cars. They want government out of their lives.
As an investor, it means that we have opportunities to invest
in people and places that had never before been attractive.
Now we have new financial instruments that make it simple
to invest not only in US stocks, but in foreign stocks, foreign
currencies, and commodities.
But we also must not forget to keep some investment money
in America. We have the best small and mid-sized companies
in the world. Small and mid-size companies are the place where
innovation begins. Innovation and change are the real catalysts
to making your money grow. Have a wonderful new year!
--Mark
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