PRIVATE ALERT – MARKET CORRECTION from Paul Ferraresi

To: Our Valued Readers

From: Paul Ferraresi, Founders Group

PRIVATE ALERT: 401(k), IRA and Personal Investment

Recently, we have been concerned about the over valuation in the stock market. All valuations methods show the market is in a “frothy” condition that cannot be justified by any logical methodology. This condition has transpired by the irresponsible easy money policies of the Federal Reserve with ultra low interest rates and an unbridled $4 trillion of money creation. An asset bubble exists in the stock and real estate markets. Can the stock market continue to go up? Yes. Forever? No.

The majority of the astute money managers we employ and other well regarded managers have moved to a 20% – 25% cash position in anticipation of a correction.

A top may be approaching as all the institutional and professional managers have been selling while the public is on a buying binge.

Timing the markets is a fool’s game.

Too many investors have over subscribed to passive indexed investing. Which, in general, holds Large Cap stocks. When the public tries to head for the exits in panic selling as the markets correct it will be very nasty.

ALERT
For these groups:

• 401(k), 403(b) and TSP Investments:
Make sure you are up to date with your “Optimizer” program to enjoy the gains yet avoid the losses.

The Optimize program will signal when to move to cash and will preserve your capital. When it is time to reenter the markets you will get another signal to buy in.

• IRA and Personal Brokerage Accounts:
Make sure your risk level is up to date. Use your advisor to select the Tactical Money Manager that will move to cash as the markets turn down and then reenter as the markets turn up.

*Remember Mutual Funds and ETFs cannot move into 100% cash by their prospectus and will take a beating as in 2000 and 2008.

If you need more information on how to safeguard your investments contact us.

Founders Group, Inc.
(713) 871-5919
Jamie@fgmci.com
www.foundersgroupusa.com

Watch my new FREE webinar, How To Double Your Social Security Benefits While Reducing Your Taxes By 80% In Retirement, take advantage of the free offer at the end.

Check out our other blog, the Wealthy Future Blog, to learn all the principles of Missed Fortune, as outlined by best-selling author, Doug Andrew. The articles, audio and video programs will provide information which you will find both enlightening and empowering!

You can also visit our website at Founders Group to learn more about how we can help you optimize your assets or provide you with any financial advice.

Leave a Comment

If you like what you're reading here, feel free to comment!

Name: (Required)

E-mail: (Required)

Website:

Comment: