What's New? Feddern Financial Consulting Group

Transcription

1 Subject: Feddern Financial Consulting Group Newsletter What's New? Feddern Financial Consulting Group TODAY'S NEWS: In this issue TODAY'S 401-k Asset Allocation Changes. We're Certainly DUE for a -10% to -20% Correction AAII/LUG's Group Info ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ TODAY'S 401-k Asset Allocation Changes PLAN NAME BUY SELL LINK TO DETAILS and the Five Profiles FFCG-Ultimate: Anderson Law Nu-tec Roofing Nationwide: Ahead HR

2 Socially Responsible: OneAmerica: VISIT OUR WEBSITE FOR SPECIFIC ASSET ALLOCATION RECOMMENDATIONS We have added several new sets of indicators from NetSignal, VectorVest, and our 20-day Moving Average of the S&P 500 which are used for the broad markets and give a general indicators of BUY or SELL. The following market signal changes were issued by NetSignal as of: US STOCKS - BUY ( ) FOREIGN STOCKS- BUY ( ) EMERGING MARKETS - BUY ( ) GOLD - SELL ( ) The following market signal changes were issued by VectorVest as of: Stock Market Call - UP: ( ) The "Holy Grail" is invested in the following Stocks as of the above date: Bona Film (BONA) Builders FirstChoice(BLDR) CNinsur(CISG) Kofax, Inc(KFX)

3 Leju Holdings(LEJU) MGIC Investments(MTG) Petro BRAS, ADR (PBR) PGT Inc.(PGTI) Societe Generale(SCGLY) Eccera Corp(XCRA) We run the algorithms every Friday and make any changes the following MONDAY % YTD ( ) The following market signal changes were issued by our LONG/SHORT S&P 500 as of Market Call - Based on the 20-day moving average of the S&P Spyders: SSO/ULPIX are LONG the S&P x2 SDS/URPIX are SHORT the S&P x2 As of this strategy has been added to and is available for all participants in our FFCG "Ultimate 401-k" platform custodied at Lincoln Trust STILL in CASH

4 Bruce's Comment: The SPY opened down, traded up then down. We have a Doji (indecision day) in the Stochastics Overbought area just starting to turn down... again, can stay overbought for some time. Volume is still below the 20MA of volume, not Bullish. Still in cash, waiting for someone to "show" us the direction We're Certainly DUE for a -10% to - 20% Correction Everywhere I go these days, the same question seems to weigh on investors' minds. "Don't you think this market is overdue for a correction?" I always answer the same way: I sure hope so.

5 "But don't you own stocks?" they typically reply, with a look of puzzlement. Of course. "So why would you root for a correction?" Let me count the ways. According to InvesTech Research, since 1932 there have been market declines of 10% to 20% - the traditional definition of a correction - approximately every two years. We haven't had one since October (Although we came close in 2012.) In that sense, yes, we are overdue. But should a market correction scare you? Stocks go up and stocks go down. Then they go back up again. I hate to be the skunk at the garden party, but anyone who sees falling stock prices as an opportunity to sell rather than buy has a tough road ahead of them. The problem, of course, is that while investors can imagine a sell-off, they can never imagine the actual news backdrop that accompanies it. Investing in Gold Just Got Easier Why spend hours searching for the best price when you can always get the best price in one place? With over 12 dealers and wholesalers bidding for your business, you can buy, sell and store gold, silver, platinum and palladium with a safe, reliable online platform. SPONSORED "I never imagined that this would happen," they say. This, of course, is something different each time. Nor are they prepared for the merchants of doom who come out of the woodwork to exclaim that each bump in the road is the beginning of the end. I work in an industry that knows there is good money in scaring the pants off people. (Unfortunately, it isn't terribly helpful to the pantless... who fear losing their shirts.) Corrections and full-blown bear markets - declines of 20% or more - are what equity investing is all about. They are your ideal buying opportunities. If you could earn equity-like returns with an account balance that rises as smoothly as a passbook savings account - which hardly rises at all at current rates - everyone would be fully invested in stocks. In other words, you're well compensated for the occasional sleepless night. Personally, market sell-offs have never bothered me. Every time great

6 "Corrections and full-blown bear markets - declines of 20% or more - are what equity investing is all about." companies fall into the bargain-basement bin, I get an adrenalin surge, rub my hands together and start buying. Apparently, this is a contradiction of human nature, but I seem to come by it naturally. I just can't pass up a great deal. (Credit my Scottish blood.) Witness this recent conversation between my wife and me: Me: Honey, I was able to buy these two 50-lb bags of cat food today for 75% off! Wife: But we don't own any cats. Me: You're not hearing me. They were 75% off! Just kidding. We actually do have two cats. Would you like two cats? (Not kidding. I'm a dog person with cats. Blame it on the kids, who favor small, fluffy creatures that ignore them.) But back to my point. You should welcome a correction, not fear one. (Even if you're using a 25% trailing stop on your individual stocks, a correction generally results in no harm, no foul.) Every great investor recognizes this. Benjamin Graham, Warren Buffett, John Templeton and Peter Lynch all made a habit of buying the dips. Graham said, "Buy when most people... including experts... are pessimistic." Templeton said, "When people are eager to sell, I accommodate them by buying." Buffett said, "You want to be very fearful when people are greedy and very greedy when people are fearful." Lynch said, "I've found that when the market is going down and you buy, at some point in the future you will be happy. You won't get there by reading 'Now is the time to buy.'" Yet the average investor - who acts emotionally rather than rationally - does just the opposite. It's a shame really - because there is one prerequisite for selling high. It's called buying low. AAII Group Info ============================

7 AAII will Meet on THURSDAY at 6:00 PM at the AUDUBON CC The Audubon Country Club is conveniently located off Preston Highway, approximately one mile South of Eastern Parkway and North of I-264 (Watterson Expressway) in Audubon Park. After entering off of Preston onto Audubon Parkway, take the first right and go all of the way to the end and you will be at the entrance to the Club. Parking is very convenient. Since this meeting is sponsored by the Louisville Chapter of the American Association of Individual Investors, you are always asked to preregister by to attend this program, in order for the country club to provide appropriate seating arrangements. Please confirm your attendance by to There is a no charge for attending the meeting And this is not a "prospecting seminar" conducted by a financial services firm selling financial products, and your addresses will remain private and protected. You are also certainly invited to participate in the buffet dinner for $25. MAY 21, PM TENTATIVE Agenda: SPECIAL GUEST SPEAKER: Bill Chandler, Founding Partner of NAM TOPIC: There's no such thing as a "Bear Market" S&P LONG/SHORT - Bruce Richards (dissecting the disastrous 1st quarter A NEW CHART that tells you "How Long You'll Live" UPDATE: A New Dividend Portfolio from the Highest Yielding Stocks in the DOW - REVISED UPDATE: A diversified Portfolio of GOLD and Gold Miners UPDATE: A New Portfolio of REITS 19 Stock and Bond Indicators to Help You Determine "Where We Are" You don't need to be a member of AAII to attend this meeting DINNER: $25 Reservations Requested and Appreciated =================================================================== Louisville Users Group (LUGS) Info ============================

8 The next LUGS Will Meet on SATURDAY - APR 25th FREE - No Reservations needed 10:00 AM TENTATIVE AGENDA: How to mitigate the Downside risk in your portfolio while participating in the Upside o o 1%atRisk Portfolios - Updated o Jim Rickarts lastest update on the markets o A New Dividend Portfolio from the Highest Yielding Stocks in the DOW - REVISED o A NEW Portfolio of REITS o A NEW Portfolio of GOLD ETFs and MINERS. o 19 Stock and Bond Indicators to Help You Determine "Where We Are" o The "Holy Grail" Stock Portfolio Using VectorVest Rules - UPDATED S&P LONG/SHORT (and the disastrous 1st quarter) - Bruce Richards All portfolios will be updated as of 3/31/2015 MY Conference Room Coffee and rolls provided FEDDERN FINANCIAL CONSULTING GROUP 603 North Shore Drive - Suite 102 Jeffersonville, IN (502) Office (502) Otto Cell otto@fedderngroup.com Quick Links... Visit our Website

9 Otto G. Feddern Feddern Financial Consulting Group 603 North Shore Drive Suite 102 Jeffersonville, IN (502) Office (502) Cell Forward This was sent to by Update Profile/ Address Rapid removal with SafeUnsubscribe Privacy Policy. Feddern Financial Consulting Group 603 north shore drive suite 102 jeffersonville IN 47130