Tag Archive for: stock market

The importance of Timing

You may, like others think that timing has nothing to do with your overall success, however I believe this is not the case. If you think back to some significant events in your life, either positive or negative, timing played a part . Don’t get me wrong I don’t think that it has everything to do with your outcome, but it definitely plays a part. The harder you work, more opportunities will come your way and the better your timing seems to be. Things just seem to happen when you want them to happen, and that is because you are focused like a laser on your desired end result.

Here are just a few examples that come to mind. Normally I write my blog posts at night and post them first thing in the morning, however last Friday I decided to write and post in the late afternoon. What happened was surprising, normally I get a few hundred hits per article, this one got 33K hits. I did not do anything different other than post in the afternoon rather than the morning. I chalk it all up to timing. Another on a personal nature, on May 11th 1993 I switched shifts with a co-worker at the YMCA Halifax where I was working as personal fitness instructor at the time.  I had done it before and did not think anything of it, however this time the result was different as I ended up meeting my wife. Their loss is my gain. Also this time last year AIG (American International Group) was quickly on on the way of becoming a penny stock, then the government intervened and and today it closed at 48.56, if you bought this time last year, then you had great timing!

Now you may be wondering how this all is relevant to finance? Well in the world of finance, the prices of stocks are constantly changing, as well as the foreign exchange markets and the yield on bonds. It’s this last item that will be important to you, as the yield of bonds determine the rates on most mortgages. Normally I do not talk about mortgage rates on my site, however it is important at this time as they have fallen to a point that you should be paying attention. If you are a home owner or plan on being a homeowner, the timing is great for you. Current 5 year fixed rates are now below 4% and variable rates start at 2.5% *(for those who qualify). A homeowner with a mortgage, a car loan, credit card or other loans could save hundreds or more each month by taking advantage of the current rates. Please contact my office if you have any questions. I look forward to hearing from you.

Cheers,

Pat

p.s- You can find me on Twitter,Linkedin, Facebookand friendfeed.

Don't get caught with your finances down!

On days like we have been having lately it is tempting to just turn off the TV, avoid reading the paper or surfing the finances pages of the internet. However sticking your head in the sand – as reassuring as it can be at the time – is a great way to guarantee that you go down with the ship!  The worst thing you can do is assume the strategy that got you where you are today, which has worked great over the past 20 years, will continue to work for you over the next 5 years: it won’t work.  The system is broken.  

So you may be asking what can you do? Well here are a few simple idea’s:

1) Manage your emotions.  Breathe.  Look out of the window and appreciate the autumn views.  Notice all the looming disasters you’re afraid of, and notice also that you do have options and can improve your situation even in the worst of times.  

2) Think long term, this market downturn is a buying opportunity if you have the cash to do it, other wise sit tight and focus on your long term financial goals. Solid companies, strong balance sheets and good dividends. 

3) Shore up your own personal balance sheet by paying off your debt. Limiting your liabilities is the best thing that you can do in these volatile times. The financial analists are predicting that credit may be harding to get in the very near future. You will greatly improve your credit score by paying off your debts and leaving your credit lines open and only using them when needed and paying them off immediately.

As always, contact me if you have any questions.
Cheers,
Pat

The worst is over? Think again

As taken from the Globe & Mail. See my comments below.

The stock market would have you believe that the worst of the financial mess is over, and that it’s time again to buy, buy, buy. But Barry Ritholtz, who writes The Big Picture Blog, thinks the buying frenzy of the past week is a head fake that will end badly.

“The anticipated bear market bounce in financials has led to the usual fools’ chorus that the worst is behind us, the economy is on the mend, and a recession is avoided,” he said. “How’s the economy doing? You tell me.”

He then goes on to list (and it’s a long list) the problems that continue to plague the U.S. economy. For one, General Motors Corp. and Ford Motor Co. are suffering, but so is mighty Toyota Motor Corp., a sign that this isn’t an isolated slowdown affecting a couple of troubled names.

The nay-sayers are at it again. So there is no time better than the present to take control of you finances. The so called professional’s are not doing so hot at it. This is what I mean by that comment, I want you to take control of your finances so that the banks, credit card companies or any one you may owe money to is not in control over you. So that when the economy tanks, and no one is giving out credit any more ( well they are, but they are making it harder to get) and people still need it. I want you to be in a position where you can fund you own life style. Where you will not have to go hat in hand to the local bank or broker so you can rob Peter to pay Paul. Please contact my office so we can show you how to take back control and get back in the driver’s seat toward your own financial freedom.

Cheers,

Pat