Jan

8

Things Have Shifted During Flight

January 8, 2008 |

My year end vacation is over, and as I stand on the Admirals Lounge in Honolulu I notice that things shifted… by about $100 grand in the negative direction in about a month, more than all the 2007 stock market gains by a big margin. Not a fun sight.

Those tracking my investment choices may already know some of the culprits. Banks, the dividend cash cows. (Thankfully Altria (MO) has saved face for my dividend portfolio.) That combined with the huge market downturn that we have experience because of the whole sub prime mess, causes great stress on my finances.

Do not buy banks now, at least for the next couple of months. Of course, for me, that piece of advice is a bit late – and you probably have figured it out by now. Hopefully whatever remains of the dividends they have to pay out (even after dividend reductions due to the losses they will announce next week) will contribute to recover some of that, a small, very small piece.

For sure, I am shell shocked. Thinking about many topics that I will ponder during the next few days:

  • Where is the US economy going?
  • Where should I invest my money?
  • Will I have to work full time for someone else again?
  • Should I move elsewhere where there is better business?
  • Besides better balancing, what else can be done to improve my chances of success?
  • How to minimize impact from political changes around the world, especially socialism? How to play financial aikido and turn the attack of political forces to your favour?

Not a great day to start a year. But with all of what was learned in the previous one, we should be able to get back on our feet. At least the business is running well, and we have started to receive payments from the current customer.


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