src="http://www.fabian.com/images/fabians-making-money-alert-images-video/" width="225" height="255" hspace="10" border="0" align="right">
Bouncing about the 50-Day Average
Have the last couple of weeks of trading been the start of a typical correction, or is it just a short-term pullback? Or, is what we’re
seeing the start of the big, bad sell-off everyone fears? I think it’s much too early to tell for certain, but one way to monitor things
objectively is to use the 50-day moving average.
The 50-day moving average is a great technical tool that can help you assess the short-term bias of the market. If we look at
the chart below of the S&P 500 Index, we see that in January the index fell below its 50-day moving average (blue line) for the first time since
November.
During the past week, we’ve seen the S&P 500 move back up toward the 50-day average, indicating that the recent selling in
stocks may be over — at least in the very short term. In times like these, when the market is basically bouncing about its 50-day average, it is
really important to keep a close eye on this indicator. By doing so, you’ll get a good read on which way this market wants to go.
|
What They’re Not Telling You about the Dow
Don’t be fooled by the Dow’s climb past 10,000. There’s a second crash coming.
Here’s the good news… the looming market drop could mean even bigger profits for you.
Discover how to get through the coming crash safely… and be in position to ride the new bull market that could soar by 200-300%.
Read my urgent report
here.
|
|
My assessment here is that if this market fails to recapture the 50-day moving average during the next week or two, we could be looking
at the possibility of a wider correction. But, if we move above the 50-day moving average in the next week or two, then we will just chalk up the
January selling to profit taking and normal corrective action after the huge 2009 market run.
Whatever happens, the 50-day moving average will be the key to understanding the market’s bias, and understanding the
ebb and flow of the equity markets is the first step toward making solid investment choices.
The Taxes Are Coming, the Taxes Are Coming!
President Obama just submitted a new, 10-year federal budget that has me very worried. The primary reason for my concern is
tax hikes. As I expected, the mammoth $3.8-trillion budget for the next fiscal year raises taxes on businesses and upper-income households by $2
trillion over 10 years. And after what could be called very minor spending cuts, the country still will face $8.5 trillion in added debt during the
next decade.
The budget for fiscal 2011 imposes nearly $1 trillion in tax increases on families with incomes above $250,000 during the
next 10 years, and it does so by allowing the Bush tax cuts to expire. That’s income, mind you, and not take-home pay or profits. That means a
small businessperson with income of $250,000 or more would pay a much bigger portion of that income to Uncle Sam. And because most of the jobs created
in this country are produced by small businesses penalized by the new taxes, I think we can safely say that this budget is not conducive to job
growth.
How much will taxes go up? Well, the two top income-tax brackets would rise to 36% and 39.6%, from 33% and 35%, respectively. For
families earning more than what the president thinks is a mystical sum of $250,000 per year, capital gains and dividend tax rates would rise to 20%
from 15%. According to The Wall Street Journal, upper-income families would face $969 billion in higher taxes between 2011 and
2020.
To put it quite simply — the taxes are coming, the taxes are coming, and it’s your job as a smart citizen to make sure you
take steps to keep your tax liabilities as low as legally possible.
If you don’t already have a good CPA, then I highly recommend you consult with one soon, especially now that tax
season is here.
Watch My Live MoneyShow Webcast
As we begin 2010, we are entering what likely is a new era in the investing and financial landscape. Now is the
time to prepare and execute a safe and profitable investment plan for the year ahead.
It is with that in mind that I proudly invite you to
href="http://mail.eaglefinancialpublications.com/ct/3890647:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C">tune in for this LIVE Webcast
presentation, titled “ETF Strategies in a Difficult Market.” This presentation will help you gain the knowledge and critical
insights you’ll need to make smarter, more informed investment decisions in 2010 and beyond.
|
Profit from Wall Street’s Biggest Mistakes
A small group of investors are turning Wall Street’s biggest mistakes into their golden profit opportunities.
Superstar investors like Warren Buffett, Eddie Lambert, Sumner Redstone and a host of other investment masters have rapidly multiplied their fortunes
routinely with this widely-ignored trading strategy.
Right now, I’m tracking several life-changing Market Mistakes that I want to share with you. I urge you to get the details on how you can rack up
double- and triple-digit profits like clockwork with this amazing technique.
Get the full details
now…
|
|
Viewing is free, so please click on the link here for more details and to register for this and other
href="http://mail.eaglefinancialpublications.com/ct/3890649:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C">live Webcast events, which will come
to you from the upcoming World MoneyShow Orlando.
You also can visit MoneyShow.com to see the
href="http://mail.eaglefinancialpublications.com/ct/3890649:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C">comprehensive event schedule, and to
register free to be a part of this all-new for 2010 World MoneyShow Orlando Webcast event series. I look forward to connecting with you.
ETF Talk: Not Your Father’s Precious Metals — Part II
The rollout of exchange-traded funds (ETFs) focused on precious metals other than gold and silver is well worth bringing to your
attention. Last week, I featured a fund that invests in platinum and this week, I will introduce you to a fund that is tied to a different precious
metal, palladium.
It would not surprise me in the least if you never have invested in palladium or if you did not know that the
exchange-traded fund, ETFS Physical Palladium Shares (PALL), hit the market last month. I have not recommended PALL, but I am
impressed that its average daily trading volume has soared to 382,000 in less than a month. I normally look to see if a fund has average daily trading
volume of at least 100,000 shares before even considering its mention, and PALL is almost four times that level in just its first month of existence.
PALL, issued by ETFS Palladium Trust, is designed to reflect the performance of the price of palladium bullion, less the
trust’s expenses. The ETF’s shares are aimed at investors who want a cost-effective and convenient way to invest and to gain exposure in
palladium, a rare, silvery-white metal that is used in electronics and in catalytic converters for automobiles.
The fund is down slightly since opening at $43.93 on Jan. 14, before closing at $43.25 on Monday, Feb. 1. However, it jumped
3.73% in a single day on Feb. 1. Also on that day, PALL’s percentage gain outstripped the performance of a prominent fund focused on gold, the
SPDR Gold Shares (GLD), up 2.26%, and a fund targeting silver, the iShares Silver Trust (SLV), up 2.89%.
Beware that the rise and fall of each precious metals fund does not exactly mirror the performance of the precious metal that
it attempts to track. The price of gold on Feb. 1 edged up 2.05% to reach $1,105.20 an ounce for the day, while silver jumped to $16.67 an ounce for a
gain of 2.96%. Meanwhile, the actual price of palladium rose to $429, up $15 an ounce, or 3.62%. While those returns are not precise matches with
their related funds, they still are reasonably close
In times of inflation and market uncertainty, I find precious metals especially appealing. I actually recommended SLV Monday
to subscribers of my ETF Trader service.
Much like palladium, silver has fallen a bit lately, but I expect a reversal here soon. If you want to invest in a precious metal that has the
potential to outperform the wider equity markets, precious metals ETFs give you that opportunity. Remember, however, that PALL and all precious metals
ETFs can be very volatile — so be careful.
If you want advice about which ETFs to buy and to sell, please sign up for my ETF Trader service by
href="http://mail.eaglefinancialpublications.com/ct/3890651:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C"> clicking here. As always, I am pleased to answer your
questions about ETFs, so do not hesitate to reach out to me if you have one. To send an ETF question to me, simply
href="mailto:etfquestions@dougfabian.com"> click here. You may see your question answered in a future ETF Talk.
|
Your Own Personal Credit Bubble
Credit card debt nationally is more than $1 trillion, with the average family carrying balances of over $16,000. Charge-off rates have doubled since
the beginning of the decade, and with unemployment at 10%, consumers are looking for solutions. If you want to find out what programs are available
today to help consumers get out of debt for good, then listen to a recent discussion between
href="http://mail.eaglefinancialpublications.com/ct/3890652:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C">Doug Fabian and David Clarke of Miracle Debt
Solutions.
For your no-obligation debt consultation, call
href="http://mail.eaglefinancialpublications.com/ct/3890653:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C">Miracle Debt Solutions at
877.332.8650.
|
|
Mutual Funds Are Hazardous to Your Wealth
The market sold off sharply in the second half of January, and this rapid descent has me very concerned for investors holding
large allocations to domestic, international and high-yield mutual funds.
What we could be seeing here is the start of a more prolonged correction in the markets. The end of this market rally — what
I call the equity endgame — is one of the 2010 investment themes that I have been talking about recently on my radio show.
Now more than ever, I believe it’s crucial that you take a hard look at your portfolio to determine which of your
mutual funds are most susceptible to a widespread market decline.
Remember, it was just over a year ago that most investors sustained serious damage to their wealth — damage that, in many
cases, will be extremely difficult to overcome. Certainly Wall Street titans, reckless lenders and irresponsible home buyers all deserve their share
of the blame for the market’s meltdown. But one part of the financial world that hasn’t received much scrutiny for its role in that
evaporation of investor wealth is the mutual fund industry.
In my latest special report, Mutual Funds Are Hazardous to Your Wealth, I expose the five serious flaws inherent in
these investment vehicles. I also tell you why exchange-traded funds (ETFs) are far superior alternatives to traditional mutual
funds.
Some of the reasons why I love ETFs are their low cost, diversification and transparency — virtues key to any successful
portfolio. For most people looking to grow their serious money over the long term, ETFs are quite simply the best investment vehicles available
today.
To get your FREE special report, Mutual Funds are Hazardous to Your Wealth, simply
href="http://mail.eaglefinancialpublications.com/ct/3890654:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C">click here.
NOTE: Fabian Wealth Strategies is a SEC registered investment adviser, and is not affiliated with Eagle
Publishing.
The Wisdom of On Liberty
“If all mankind minus one were of one opinion, and only one person were of contrary opinion, mankind would be no more
justified in silencing that one person, than he, if he had the power, would be justified in silencing mankind.”
–John Stuart Mill, On Liberty
The philosopher, whose work is nearly synonymous with utilitarianism, realized the virtue of a dissenting opinion in this most insightful
observation. The next time you find yourself disagreeing with the majority of your peers, try to keep Mill’s notions from On Liberty in
your mind. I suspect that by doing so, you’ll feel a lot more comfortable in your dissent.
Wisdom about money, investing and life can be found anywhere. If you have a good quote you’d like me to share with
your fellow Alert readers, send it to me, along with any comments, questions and suggestions you have about my radio show, newsletters,
seminars or anything else.
Click here to Ask Doug.
Sincerely,
Doug Fabian
P.S. My publisher, Eagle Financial Publications, is now on Facebook.
href="http://mail.eaglefinancialpublications.com/ct/3890655:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C" target="_blank">Click here to see our
page and be sure to become a fan when you get there.
href="http://mail.eaglefinancialpublications.com/ct/3890656:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C" target=_blank>  Doug
Fabian’s Wealth Strategies airs live Saturday morning 10 a.m. Pacific Time on KRLA News Talk 870 AM, and in Phoenix, AZ, at 11:00 a.m. Mountain
Time on KFNN 1510 AM. During these times you can
target=_blank>listen to the show live from anywhere in the world and you can
href="http://mail.eaglefinancialpublications.com/ct/3890657:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C" target=_blank>listen to archived shows at any time.
Now you can view Doug’s daily market update, guest interviews and excerpts of his radio show at our new
href="http://mail.eaglefinancialpublications.com/ct/3890658:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C" target=_blank>Video Archive.
target=_blank>
height=1 src="http://paracom.paramountcommunication.com/phase2/bhecho_files/Misc/bookimages/1pxtrans.gif" width=5>
href="http://mail.eaglefinancialpublications.com/ct/3890660:5748768118:m:1:169013451:E434191EE17A8B640BD5B2CA9FB6AD9C" target=_blank>Subscribe to the FREE
podcast |
href="http://mail.eaglefinancialpublications.com/forwardthis/ft.php?mID=1615778&em=Subscriber&ch=9ec84cd6bd82c39489d446a4190437">Forward this email to a friend!
border=0>
|
width=139 align=right border=0>
width="22" height="22" border="0">
