Below, I’ve embedded a video containing Fed Chairman Ben Bernanke commenting on the economy. It’s about 5 minutes long and I’d encourage you to invest 5 minutes to watch it.
In July 2005, as the video will demonstrate, Helicopter Ben went on record as saying that the decline in housing prices will be localized and a nationwide decline in prices is unlikely.
In July 2006, Ben told us the automotive sector was strengthening and he expected the housing correction to slow.
In February 2007, Bernanke stated the problems in the sub-prime mortgage market would be contained and economic growth would remain moderate. In fact, Ben stated the economy should strengthen by mid-year (2007).
In July 2007, Bernanke said the global economy was strong, would expand in 2007 and grow even more in 2008.
Don’t take my word for it, watch it for yourself.
How do you feel now about the predicted recovery mid-year?
Well some folks, in my opinion wise folks, are raising cash holdings by taking profits on rallies and using absolute returns strategies* when managing their assets.
To obtain my quarterly market update, click here:
Securities offered through USA Advanced Planners (Member FINRA/SIPC). Advisory services offered through USA Wealth Management. USA Advanced Planners and USA Wealth Management are affiliated companies. The opinions expressed herein are those of the writer and not necessarily that of the above noted affiliated companies. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted.
· Absolute return portfolios ideally look to generate positive returns whether the overall market is up or down. No investment strategy is 100% accurate. Investing in market related securities involves a risk of principal loss. Prior to making any investment decision, the services of an appropriate professional should be sought as investment related recommendations are dependent upon the personal financial situation of each individual investor.
