Tuesday, February 21, 2012
The Best Buying Opportunity in a Generation for Investors?
Edelman Financial Services CEO Ric Edelman on why there are such great opportunities for investors right now in the markets.
Grouch: My love/hate relationship continues with Ric Edelmann. I believe he is one of the better and more consistent people in the financial planning industry, but the personality is sometimes a little too much for me. I do agree with the premise of his comments.
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Points well made. I too agree pretty much. I wouldn't say it's the "opportunity of a generation" but people should be invested in stocks. I hope for a return of 7% over the next several years with some big bumps along the way which will present much better buying opportunities.
ReplyDeleteHopefully the economy is getting better. I believe that the jury is still out on the stock market. MR Edelman appears to be a little over confiident about the stock market. I would totally disagree with the idea of buying a broadly diversified portfolio. I would instead concentrate on the wide aray of exchange traded funds and closed end funds available today. You can build a diversified portfolio of funds' Concentrating on the exchange traded funds that are most out of favor and have declined by the largest percentage. For example their is a solar Exchange traded fund that trades around 3.00 dollar a share it was trading at 30.00 dollars a share about five years ago. Their are also some single country exchange traded funds that are down by 80% from their highs. The only word of caution for anyone considering investing in exchange traded funds is this always avoid exchange traded funds that use leverage to magnify their returns. These exchange traded funds usually are marketed under double or trible the return of standard and poors five hundred index or some other index. So be very careful of these exchange traded funds because their a very dangerous place to be putting your money their more like options or futures than exchange traded funds in my opinion.
ReplyDeleteon the wide aray of funds available. Today you can build a diversified portfolio of funds' Concentrating on the exchange traded funds that are most out of favor and have declined by the largest percentage. For example their is a solar Exchange traded fund that trades around 3.00 dollar a share it was trading at 30.00 dollars a share about five years ago. Their are also some single country exchange traded funds that are down by 80% from their highs.
For the know-nothing investor, broad stock market indexes (such as VTI) are the best bet for playing the winner's game of at least matching the stock market returns as a whole. Edleman is not talking about specialty ETFs or single country funds. As for solar funds and solar companies, tread carefully, this is a highly speculative area and these companies are struggling with even with heavy government subsidies.
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