The Hancock-Henderson Quill, Inc.
Dear Editor,
The trouble with being addicted to writing letters to the editor is you always think of other things to write about (sorry about that).
Some would say that it is an ego trip, and some people like to see their names in the paper. That is probably true, but it is also Ñan outlet.
We retirees definitely need some mind stimulating, as well as body stimulating activities.
You can beat the little white ball around but when it doesn't go where it is supposed to go, you become more frustrated.
When my fan club (both members) request more letters, there will probably be more, until newspapers refuse to print them (this may be it).
No one is forcing you to read this drivel!
If you feel that the stock market is like A Nightmare on Elm Street, and that you and your portfolio have been attacked by Freddie the chain-saw murderer, you have a lot of company.
However, as experts say, the best time to invest is when the market conditions are the bleakest - buy low and sell high!
The only problem is that Freddie has already decimated a big chunk of our assets!
The only one who knows what the stock market will do is God himself, and He has more important things to deal with.
Although we seem to be coming out of a recession, it could be a double dipped recession. History has shown that a lot of market optimism means sell and pessimism means buy.
Although gold has gone up over 30 percent in the first three months of this year, it is probably not a wise investment. Many will see this advance and jump on the band wagon.
However, they will probably be buying high and selling low. It is important to check an investment history.
In recent years precious metals (gold, silver, and platinum) have performed like dogs (not purebreds, but mutts!). It has been called an inflation hedge but there is little inflation.
For a few years, many of us were brilliant investors. All you had to do was invest in technology and you would be rich the rest of your life.
Unfortunately, ignoring price/earning ratios, etc., does not work and Freddie destroyed a huge bubble.
In 2002, after gold, emerging markets and small-cap value have performed the best and science and technology have performed the worst.
As they say, what is hot today is cold tomorrow and vise versa. For example, a few years ago we had a diversified international fund, which went up over fifty per cent in a year and has had some big hits since then.
The next year we had a normally considered conservative utility fund, which went up over fifty per cent (when Tele-Com was hot).
They have really been beaten up since. So maybe it is now a good time to buy again. Of course, investors do not talk about their big losers!
Weyman George
Macomb,
P.S. Do not let Freddie get you!