Jeff's Editorial #42 – Have you just...

In the past month, we have seen the most spectacular market rise in several generations:

Look at some unexpected performances (numbers are approximate):

Rise in one month (3/09/09 to 4/09/09)

AIG 180%
Ford 130% (Ford gained 46% this week)
CitiBank 110%
GE 100%

A report details some other stocks.

U.S.Stocks Gain, Capping Biggest Jump since 1933 as Banks Rise -April 10 (Bloomberg) -- U.S. stocks rose for a fifth week, capping the steepest rally since 1933, as Wells Fargo's higher-than-estimated earnings and speculation banks will pass government stress tests spurred optimism that the industry's slump is ending. Click the link to read the article.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a9bx2uPiMUgw&refer=home

Remember, however, that there are risks to any investment. Stocks and bonds have high level of risk from market fluctuation. CDs and Money Market are safe, but have inflation and interest risks. Even cash has loss, inflation, and interest risks. Diversification, risks, and safety should always be balanced with common sense.

In my opinion, the best investments today are building up emergency fund and paying down your debts.

Please rate and comment on this post

Comments: 8

Pat D. Apr 10, 2009, 7:43pm EDT

I am not convinced that we are done going down. Time will tell. Right now I am still taking profits quickly. I still think we are in a range bound trader's market, and there is no hurry to invest.

AIG and Citigroup stocks are especially speculative, and not stocks I would even day trade.

The last month only looks spectacular if you ignore the prior 4 months. I would find this rally more convincing if the volume was higher.

reply to this comment

Jeff S. Apr 10, 2009, 9:59pm EDT

Pat, I agree with you. Market can go down again, I expect. I'm still 70% in cash. I do not have AIG or Citi stocks but I did buy Ford and GE when they were much lower in March. I was simply pointing out that there are good periods, occasionally.

I am not advocating jumping back in, but go back in slowly, and I certainly have no crystal ball. I do know that my friends and relatives are selling out low, and they may buy again..... when it's high. Not a smart thing to do. One thing I don't do is watch or listen to the commercial media.

reply to this comment

Marsha S. Apr 10, 2009, 11:31pm EDT

I don't think they have given a report at church council on how our investments are doing....I don't think I will ever financially be able to invest

reply to this comment

Jeff S. Apr 11, 2009, 5:35pm EDT

Marsha, I tell everyone that they should NOT invest a penny until three steps are done.
1. Get current on all bills
2. Build up emergency fund
3. Pay off all debts except for mortgage

reply to this comment

Jean E. Apr 13, 2009, 9:21am EDT

Excellent advice, Jeff. It looks as though you have listed the steps in order of importance as well. I know when I paid off my last "other" bill ~ I felt as though a huge weight had been lifted off my shoulders. It takes time to make right all of the financial wrongs we have done in the past. Thank you for "breaking it down" in an easy to understand way ~j

reply to this comment

Jeff S. Apr 13, 2009, 9:31am EDT

Jean, thanks for your comment. I always encourage everyone to have a chance to scream out "WE'RE DEBT FREEEEEE!"

Personal finance always means "personal" and "finance" both of which should be simple and easy to grasp, without the need of an intermediary to explain to us.

reply to this comment

Bundy P Apr 17, 2009, 7:15pm EDT

You are definitely a Dave Ramsey follower...LOL!

reply to this comment

Jeff S. Apr 18, 2009, 6:29pm EDT

Bundy,
Absolutely. I was broke 15 years ago, but Dave made me turn my financial life around 6 years ago, and today I have net assets in the seven figures.

I plan to attend the "Town Hall for Hope" 4/23/09 8 pm ET which are at thousands of locations - find it here: http://www.townhallforhope.com/index.cfm?event=displayAttendEvent

reply to this comment

Jeff's Editorial #42 – Have you just missed the biggest market rise in 75 years?

Comments: 8

Join the Conversation

You might also like

More by Jeff S.