Tags: bill | spetrino | us | economy | bargains | fear | investing

There are Bargains to be Had Amid the Fear

By    |   Friday, 25 Feb 2011 09:54 AM

In the past week, U.S. citizens have been bombarded by unrest in the Middle East, the stock market has dropped for three consecutive days and some Wisconsin Democratic senators deciding to leave the state because they didn’t like how the election turned out.

Many of my investing peers, or those who subscribe to my Dividend Machine newsletter, have been asking me about an upcoming correction in the stock market.

To be fair, the fact that my newsletter has 100 percent winners in the conservative portfolio since inception has garnered some worldwide attention in the past two years

Warren Buffett's Obscure Strategy to ‘Retirement Prosperity’ — Click Here

Let me first say that no one knows exactly what will happen in any of the three situations described above. Anyone who does claim to know the future is lying to you or to themselves.

My success as an investor is predicated on other folks driving down good stocks to bargain prices — and me buying them. So please don’t misunderstand me. I enjoy a wide variety thoughts and opinions, no matter how much they differ from my thinking.

My readers trust me to be blunt and competent, given the fact I have reached financial independent solely from investing. So for them, I will give my brief abbreviated version of what I think.

I recently got to hear Jim Cramer of “Mad Money” say $4 gasoline would be bad for the U.S economy and the U.S consumer. He also said it remains to be seen whether the unrest that has swept across Northern Africa will spread to other oil-producing countries.

"I've never been a believer in the double-dip scenario," Cramer said. "But with $4 gasoline, it could happen, especially if high fuel costs create a palpable sense of inflation, which causes the Fed to tighten too soon."

He also recommends being cautious. I am always cautious when I invest. It’s called “investing,” not getting a guaranteed return with a predictable outcome.

My advice remains the same. Buy the best companies that combine safety, income and growth with the best reward-risk ratio.

If you can do that, you will do fine. If you can’t do that yourself, then hire someone who can.

I don’t try to forecast the unpredictable. I don’t waste my time and neither should you.

As far as the stock market being down three straight days, I really don’t care. In the past 100 days, we haven’t had a 3 percent or more correction. How long will it last? I don’t know and truthfully I don’t care.

If my stocks get to their buy price, I buy it. If it gets to my sell price after a 70-plus percent run in eight months, like Verizon did, I sell it.

The market is here to serve me, not to guide me. Too simplistic? Sorry, I keep it real.

The Wisconsin senators who left the state aren’t worthy of the 24/7 media coverage they receive. The folks of Wisconsin knew what Republican Gov. Scott Walker’s plan was. They voted for him. I just hope the politicians aren’t surprised when the people of Wisconsin insist that the politicians not be paid for the days they decided to take off.

Politicians do work for the citizens, right?

As an investor, I hope you learn to ignore the noise and focus on the bargains that may come your way because of the panic and fear of others.

Please e-mail us at dividendfeedback@newsmax.com with your comments.
 
About the Author: Bill Spetrino
Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of the Dividend Machine. Discover more by Clicking Here Now.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
BillSpetrino
In the past week, U.S. citizens have been bombarded by unrest in the Middle East, the stock market has dropped for three consecutive days and some Wisconsin Democratic senators deciding to leave the state because they didn t like how the election turned out. Many of my...
bill,spetrino,us,economy,bargains,fear,investing
617
2011-54-25
Friday, 25 Feb 2011 09:54 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved