Welcome to the second half of 2008!

 

6:27 AM — Welcome to July 1 — the official start of the second-half of the year!
 
The Wall Street Journal is reporting that due to the rising cost of oil and inflation concerns, many investors in the stock market are looking ahead to the second half of the year with dread. The doom and gloom report goes on to say that not only was this last quarter the worst since 2002, but it marks the third quarterly decline in a row.
 
The WSJ has another story indicating shares of Lehman Brothers hit their lowest level since 2000. The story goes on to to say there is speculation swirling that Lehman may have to hang up a “for sale” sign, which could be sold for a “bargain-basement price.”
 
Since I personally detest the on-going ad nauseum “the sky is falling” reporting from most business outlets lately, let me just point out that while everyone seems to have a firm grasp on the fact commodities and oil are hurting most American wallets — it only makes sense that anyone with money to invest on the street is looking into those same areas to invest some money. Of course, do your due diligence to decide which of those, if any, is the right investment for you.
 
At the same time, instead of indulging in misery over some particular stock you may own where the chart continues to spiral down, ask yourself if you still believe in the fundamentals of the company. If the answer is no, then get the heck out. If the answer is yes, then use this as an opportunity to buy more of the company at a deflated price.
 
But, no matter what else you do — for heaven’s sake — diversify yourself in this market. Keep some money on the sidelines in cash, then pick the best commodities/oil, bonds, moneymarket, cd’s, etf’s and stocks that you’ve done some solid due diligence on to be in your current portfolio.
 
As I said in a previous post — this is not your daddy’s market anymore. We live in a 24/7 news cycle, and more people are consistently trading in markets around the world.
 
If you don’t feel you have the ability to manage your money — then take it off the table, or hire a qualified professional you’ve checked out to handle your money for you. Even then — watch over their shoulder to make sure you’re comfortable with the decisions they are making. It’s your money — ask questions.
 
If you’re looking for further ideas on where to put your money in this market, MarketWatch has a good story today on investing in mining, energy and fertilizer companies. It’s worth a read.
 
Just remember the usual disclaimer — don’t base any of your investment decisions on anything in my little business blog. Do your own due diligence — or at least enough research to pick the right professional to do it for you.
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