Saturday, April 11, 2009

Congratulations, You Have Survived the Worst Business Cycle of Our Generation

From an investment viewpoint, you have survived the worst business cycle of our generation. It will be wonderful when the ecomony begins an upswing and we start the next business cycle. Congratulations, you have one more thing to be thankful for this Easter!

This week the US stock market recorded the best 5 week return, of about 30%, in the last 70 - 80 years. It is very doubtful that another 30% return will occur in the next 5 weeks. Since the economy is improving, is also very doubtful that the stock market will return to the low seen 5 weeks ago.

What is important to learn is that it is important to be a disciplined investor. Let's go back 5 weeks, most of the experts on TV talked about how bad things were and to avoid investing in the US stock market. As an investor, you were better off to maintain discipline and continue with your gameplan. Anyone who put money into the US stock market during the past 5 weeks had to have courage and overcome fear.

Now what does an investor do since the US Stock Market has rebounded? Follow your gameplan and maintain investing discipline. Noboby knows what will happen to the US Stock Market in the short term. In the longer term, the stock market increases as the economy improves.

Enjoy your Easter! Your Christian faith and relationships with Family and Friends are the most important things you have!

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