The obvious is more and higher taxes as well as new government regulations. It is the responsibility of the companies to continually adjust their businesses. At times this means letting go of employees, closing plants, but the actions taken allow the companies to not only survive but thrive.
This is exactly what investors must do. Adjust their thinking and their time lines but continue to recognize the value of investing in stocks.
As I look at the macro economy, what I recognize is that our own government is the only one buying our treasury bonds; this indicates interest rates are going to begin to move up. How soon remains the unknown. There are trillions of dollars sitting in the coffers of corporations waiting to be invested.
Reports regarding home purchasing state that the real estate market is beginning to return in certain areas of the country. However, the Dodd-Frank Act with its new tighter mortgage restrictions may slow the growth. The new rules are to be implemented by Jan. 21, 2013 and the American Bankers Association is reviewing the rules and offering their opinions and suggestions as to other alternatives than what the act reads. Apparently, there are sections in the act which have such high debt to equity ratios that it could once again stall real estate sells. It seems the pendulum is swinging too far to the right.
Employment remains a challenge and we hear of new companies as well as mature companies (such as Wal-Mart) working to solve this challenge….. Wal-Mart announced their plan to hire our military veterans.
Growth stocks have and remain to be the opportunity for the investor. I wish to remind everyone that trading is not investing. Investing is a commitment and time is needed to give companies the opportunity to prove themselves. Growth stocks choose to utilize their capital to innovate their product or service. Dividend stocks should remain a part of one’s portfolio. Taxation will affect their returns (unless held in a tax deferral account).
As I have stated, consistently, over the years—— time and patience are required when investing.
Ignore the commercials, the reports, the financial TV, and radio stations with all of their pundits who tell you they have a strategy which is a sure thing. As the Oracle of Wall Street (Warren Buffett) says “Always invest for the long term.”
Let’s have a conversation
Let’s get together, face to face. I will help you experience — and understand — how your money will grow in the world of long-term investments. Let me show you how much fun it can be! Call me, Vicki L Wille, today at 702-878-9562.
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