“Folks, if you didn’t raise some cash like we suggested last summer, you DO NOT raise cash here. This is how bottoms are made. The internals of the equity markets have been weakening since July with many of the indices’ components off more than 20%, while a few of the larger capitalization stocks have been able to keep the overall indexes only marginally lower. Verily, the troops have declined while the generals have held up, but now the generals are retreating. This is how declines end, unless the markets are going to crash. Historically, at market bottoms, the stocks that have tended to hold up finally succumb to the downside creating a panic plunge that is for buying. All investment books tell you the time to buy stocks is when they are out of favor. Regrettably, those same books don’t tell you how to summon the courage to buy stocks when things look so bleak. The quid pro quo is that it is nearly impossible to get investors to sell when stocks are zooming higher and times are ebullient. Amazingly, this is the only product I know of that when they put the product on sale, nobody wants to buy it!” ~Jeff Saut, Investment Strategy ‘Days of Yesteryear’-2015-08-24

Has your investment advisor been in touch with you over the course of the last several months to explain his/her view of the markets and what they plan to do with that view?   To me, the essential part of my service as a Portfolio Manager is to manage my client’s expectations and prepare for the scenarios I see unfolding in the market.

The stock market has been in a sideways correction basically since last November. Generally those type of range bound trading patterns resolve themselves with violent endings. Is that what is happening now? In my opinion, yes.   And it is for this reason that I have kept cash on the sidelines and advised clients to send me any additional savings so that we can take advantage of any opportunities to buy stocks at potentially sale prices. We could be having a sale right now and I am executing on my buy list. Are you?

If you’d like to sign up for complimentary Discovery Session, please complete this form and my assistant, Jennifer Klonowski will contact you to set up an appointment.


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pamela johnston redefining success investment advisor portfolio manager

Pamela Johnston, FCSI
Investment Advisor & Portfolio Manager