Stock Ideas 
Stock Ideas Investors Daily Edge Survivin’ The Financial Crisis By Discoverin’ Your Inner Maverick
Stock Ideas Investors Daily Edge Survivin’ The Financial Crisis By Discoverin’ Your Inner Maverick 
Market Watch
| Most of the time, traders can count on the stock market to lead them gracefully around the dance floor. | |
| More... |
Most Popular
Login Form
| Survivin’ The Financial Crisis By Discoverin’ Your Inner Maverick |
| Friday, 10 October 2008 | ||||||||
|
Hey Paul, how’s this Friday thing workin’ for you? The Paul to whom I’m referrin’ is, Krugman. He’s one of those elite media types. The kind who, when choosin’ a word, does it carefully because he knows its exact meanin’. Krugman has been writin’ columns on Fridays at the New York Times for a long time. Throughout all my years of journalism, today is the first time I’ve ever opined on a Friday. But, I am figurin’ it’s gotta be a pretty good day, because many people who enjoy both good writin’ and clear thinkin’ believe Krugman is one of the most powerful and eloquent columnists on the planet. That’s also… gulp… some stiff competition. So, movin’ from Saturdays at IDE to Fridays has me worryin’ a bit, too. Well, actually, lots of stuff has me frettin’ these days… ‘specially how we all could find ourselves talkin’ after listenin’ to a few years of a Palin maverick presidency. Brother, Can You Spare Me A Fresh Idea? Besides the contrived diction, I’ll betcha two words you’ll be gettin’ mighty sick of durin’ a Palin regime are – “Main Street.” You may even be sick of hearin’ them now. I know I am. You see, spoutin’ about how Wall Street is screwin’ Main Street is nothin’ more than the empty words – the utterin’s – of people with nothin’ productive to say, but nonetheless are attracted to the sounds of their own vocal phrasin’s. Do you remember hearin’ anyone with the power to alter destiny worryin’ about Main Street while the Internet, tech and housin’ bubbles were ragin?’ No.
What you heard was everyone from street preachers to Wall Street proselytizers urgin’ Main Street to jump on board. Or, as I imagine Sarah might have said to Todd while splittin’ an icy-cold six pack one night, “Dang, we oughta get some of that Countrywide while the gettin’s good.” Now, to be fair, Sen. Obama isn’t a saint on this Main Street thing, either. But, maybe after 32 years of southern and western presidents it’s time to give the Midwest a shot. On top of that, merely winkin’… wavin’… and mouthin’ platitudes about hangin’ Wall Street’s bastards from Wasilla’s one streetlight pole is not only intellectually facile it’s not even a righteously maverick stance. The True Maverick Way Now, I hate to go all Krugman on you. Maybe it’s somethin’ about Friday. But, people who use words in an exactin’ manner know that mavericks are, by definition, unorthodox, independent-minded people who like neither joinin’ up with, nor conformin’ to, any particular group or party. So, here’s what a real maverick might tell you. “What’s all this stuff I’m hearin’ about Joe six-packs. Who in their right and responsible mind can afford a six pack today? How about a three pack? How about big quarts of Colt 45… just to wash down the tears of ruined retirements and stock portfolios.” There’s also another thing that only a maverick would tell you today. It is, that while we have earned the right to be angry as heck at stuff outside our control, were dead in the water without Wall Street. Yup. Unless you have all you’ll ever need, you still need Wall Street. In fact, given the choice between Wall Street and Washington, Joe three pack should go with Wall Street every freekin’ time… you have a chance of gettin’ your money back on Wall Street. Adjusted Mindset So, here’s what I think a maverick would do… what you should consider. First, understand that while you’re not alone, you do need to stay in front of the pack. You see, today, America is mintin’ millions of potential mavericks by the second. As many as 80 percent of Americans are way stressed about their personal finances and the economy, accordin’ to the annual survey done by the American Psychological Association. These are not super fresh numbers, either. The survey was taken between April, when things were merely crappy, and September, when the bottom fell out. Older people seem to be the most scared. Who can blame them? The system they fought for is busted. The authorities they loyally followed have bent them over, reached in their wallets and emptied them out. Chances are, sad to say, these people will always be followers… they’ve always been most comfortable as members of the pack. Become Your Own Authority But, it’s not too late for you to adopt a more anti-authoritarian stance… to stay out in front of the pack by keepin’ your own maverick counsel. You need to work Wall Street’s edges. That’s where the big money has always been for Joe six pack… along with new ideas… and real estate. Now, other than signin’ two mortgages in 15 years, I am a total real estate neophyte. So, you may want to check in over at Early To Rise and see what Michael Masterson has to say about today’s market. He’s quite brilliant about that stuff. This could be important to you, because it seems to me that all the pain and foreclosures in the US housin’ market means there is goin’ to be a huge need for rental property. Logic suggests that need is married to some good deals in real estate, too. Income yielding property could be a nice hedge today… cash flow. But, again, do your homework. Become your own authority. After all, as ill informed as I may be about real estate, even I know it can’t be as easy as those flippin’ late-night television commercials make it sound. Only Good Stuff The next big maverick step you need to take is what I guess I’d call – the flight to quality. In other words, it’s okay to be a consumer, just stop buyin’ crap. Buy on need today, and buy the best quality item you can afford. You see, if you’re goin’ to spend you ought to be proud about that which you bring home. Still, it’s time to tighten up the spendin’. Because, sometime in early to mid 2009 (next year) there will be deals galore in the stock and real estate markets. You’ll kick yourself if you aren’t prepared. By the way, a true maverick recognizes that there are deals galore in the stock market today. Of course, they’ll quickly disappear once the pack starts snappin’ at them. Value Does Not Mean Cheap As part of your flight to quality I urge you to walk away from anyone who is shoutin’ at you… anyone who is spoutin’ doom and gloom (what, do they think you’re blind?). Come on, you don’t watch the weather to see what it is today, you watch it to find out about tomorrow. Last month in her Rising Tide Letter, the calm and quiet talkin’ Lynn Carpenter had some great alternative (off Wall Street) ideas that pay fat returns. Lynn’s also a renowned value investor who can show you how to spot real stock-market deals, not just cheap stocks. Let me assure you, Lynn can help you to become a strong maverick… one who is his own authority. Also, continuin’ along Wall Street’s edges means you should at least consider delving into options. Again, Lynn can show you how to survive there. She is a brilliant options trader with a 10-year public record to prove it. Of course I tout Lynn because the best thing she ever did was marry me. Steal Our Knowledge Of course, I don’t want you to lose sight of the fact that the rest of the gang here at Investor’s Daily Edge has it goin’ on too… Among others, there’s a great options program from Rick Pendergraft… solid income investing from Andy Gordon… a slew of timely bond ideas from Steve McDonald… and commodity expertise from Rusty McDougal. Chances are, the IDE crew will make some money for you – but, believe it or not, that’s not the point today… right now. What you want to be is a maverick. You don’t need more friends. You certainly don’t need any more authority figures. You need useful information… quality data. So, what you need to do is bleed us dry. Soak us up and cast us off. Because one of the best survival skills you can acquire today is to learn how to be the guy at the head of the pack… the leader, not the follower. Bein’ a true maverick is the fastest way to get there. Whew! I wore out the apostrophe key this week. This writin’ and talkin’ in the manner that Gov. Palin suggests connects with Joe six packs and the hockey moms is hard work. I have lived in New York City, Washington, DC, Baltimore, Boston, Raleigh, Durham and Wichita Falls… just to name a few. And, never on Main Street have I heard a person droppin’ every single “g.” This bein’ a maverick is goin’ to be hard work. Have a great weekend. P.S. To let me know what you thought of today's article, send an e-mail to: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
This investment news is brought to you by Investor's Daily Edge. Investor's Daily Edge is a free daily investment newsletter that is delivered by email before the market opens. It's published by Fourth Avenue Financial, a subsidiary of Early To Rise (an affiliate company of Agora Publishing). In each weekday issue you'll receive practical strategies for protecting your portfolio and multiplying your money. You'll also learn about undiscovered opportunities in emerging sectors and markets, deeply discounted stocks, recommendations for bonds, cash, commodity and real estate investing, and top ETFs. To view archives or subscribe, visit Investor's Daily Edge .
|
||||||||
| < Prev | Next > |
|---|