The Fat Lady is Singing!

 

In June 2009, I wrote a political article entitled Did The Conservative Fat Lady Sing? Using anecdotes from my financial career, I pretty much called the bottom of the “conservative market” in politics.  Today I’m here to pronounce the U.S. stock market at its bottom. Obviously, I could be wrong — but experience points me to the end of a destructive political cycle.

I’ve never seen so many stock charts look so dismal.  Granted, the economy stinks and rightly so, since the Obama administration refuses to open up energy production in the U.S. and keeps piling on costly business regulations, driving businesses overseas and/or shuttering their doors.  Forget bickering over corporate income taxes.  If Congress would simply remove all the new regulations, businesses would have enough cash freed up to hire people.

But the much bigger change will come with a new POTUS, because business leaders simply don’t trust our current president.  Even if the Supreme Court ruled Obamacare unconstitutional, CEOs would continue to sit on the sidelines with their cash, wondering what type of expensive regulatory assault would hit them next.

Compound U.S. economic woes with financial collapses in Europe generated by too many years of putting local populations on the dole.  Prime Minister Margaret Thatcher said, “…and Socialist governments traditionally do make a financial mess. They [socialists] always run out of other people’s money. It’s quite a characteristic of them.”

It’s no wonder that the U.S. stock market is in the doldrums. But there is hope.

There are so many excellent choices on how to lead us out of this fiscal mess that a new president will be the popular uncle at Christmas, freely bestowing opportunity upon all willing citizens.  Open the energy markets and create jobs.  Cut the corporate tax rate — by any percentage — and create jobs.  Stop giving hard-earned taxpayer dollars to foreign countries — and reduce America’s debt.  Cancel Obamacare and cancel the massive corporate expenditures associated with implementing that program.  Close the borders, and dramatically reduce crime rates and municipal expenditures (prisons, hospital, schools). Stop throwing government money at political cronies’ companies which were never solvent in the first place.

There are so many additional easy ways to turn the economy around, it’s laughable.  And when our new President begins inserting logic into economic policy, the stock market will respond.

Our job as investors is to buy low and prepare for that moment — or that decade. Because stock market success is cyclical, and tends to continue for many years until coming to an event-driven turning point.

Are there attractive, growing U.S. companies to invest in whose stock prices haven’t completely collapsed?  Of course there are.  But you’re not going to find them in this market by accident.  I’ll continue to write about such companies, and buy their stocks. Because I have complete confidence that Obama’s socialism and destructive economic policies are coming to a close.  When that day comes, I’ll be prepared with a portfolio chock full of growing companies, good dividends, low PE’s, and optimism.

The fat lady is singing again.  It’s music to my ears!

* * * *

Investment Disclaimer

Release of Liability: Through use of this website viewing or using you agree to hold www.GoodfellowLLC.com and its employees harmless and to completely release www.GoodfellowLLC.com and its employees from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.

Goodfellow LLC and its employees are not paid by third parties to promote nor disparage any investment. Recommendations are based on hypothetical situations of what we would do, not advice on what you should do.

Neither Goodfellow LLC nor its employees are licensed investment advisors, tax advisors, nor attorneys. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment.

The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. When information is provided herein from third parties — such as financial news outlets, financial websites, investment firms, or any other source of financial information – the reliability or completeness of such financial information cannot be guaranteed.

The information contained on this website is provided for informational purposes only and contains no investment advice or recommendations to buy or sell any specific securities. This is not an offer or solicitation for any particular trading strategy, or confirmation of any transaction. Statements made on the website are based on the authors’ opinions and based on information available at the time this page was published. The creators are not liable for any errors, omissions or misstatements. Any performance data quoted represents past performance and past performance is not a guarantee of future results. Investments always have a degree of risk, including the potential risk of the loss of the investor’s entire principal. There is no guarantee against any loss.

* * * *

Goodfellow LLC is a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.