On this week’s conference call, Jerry discusses his thoughts on the Euro, oil, gold prices, housing, and which precious metal may be getting ready to soar… Plus, we take your questions live.[MM_Access_Decision access='true']
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Stocks stumbled at the open this morning, led by Chevron and Caterpillar.[MM_Access_Decision access='true']Chevron, which is my favorite major oil company, has once again fallen below $100. This is nearly always a buy signal for me. However, Chevron stock is obviously sensitive to oil prices, which are extremely skittish right now. Therefore, I am purchasing Chevron (CVX) with a tight stop loss order at $96.65 (just below the 2012 low of $96.70.) Oil has fallen 15 percent over the last four weeks as investor fears over the Euro dictate their every move.
A few other important notes...
The Euro plunged to $1.24 for the first time in nearly two years. Fears running amok as the yield on Spain's 10-year bonds reached 6.7 percent Wednesday, the highest since November. Greece, Portugal and Ireland also saw borrowing rates rose above 7 percent.
Sales contracts for U.S. homes dropped in April. It was the biggest drop in contract volume in a year. While this is bad news for the overall economy in general, it is good news for cash buyers and real estate investors who want to take advantage our record low mortgage rates and low housing prices.
Gold is in negative territory for the year. Gold is down 20% since its record high in August 2011. The yellow metal is down 7% so far in May.While pension funds and hedge funds have been decreasing their exposure to gold as of late, central banks continue to buy aggressively. Gold prices are responding to deflationary concerns as the global economy is slowing. If you believe as I do that the monetary authorities will soon respond with more easing, then gold is on sale. I like gold at these levels and gold mining stocks. Consider GDX and GDXJ.
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On this week’s program, Jerry and Jennifer Robinson discuss six major roadblocks to retirement today along with some tips and advice
By Jerry Robinson | FTMDaily.com Editor-in-Chief
It has been a rough ride in the global economy as of late. If you are an investor, you know that great financial perils exist right now… but so do great opportunities. It is this ability to recognize those opportunities that separate those who are financially successful from those who are not.
Most of the financially successful people I know are doing extremely well right now. Many of them have confided in me that the last two or three years have been some of their best years ever. I would have to agree.
To understand why, consider that my definition of financial success is our Five Levels of Financial Freedom. Sure, not every successful person that I know has used our wealth building system. However, their financial lives are structured very similarly to those who have.
One common trait that nearly all financially successful people share is that they have a well diversified investment portfolio with exposure to several different asset classes, including stocks, real estate, and precious metals. Instead of getting hung up on which financial product to buy, they focus on their overall financial goals, which then leads to the creation of a financial strategy.
This really is a major difference that sets the wealthy apart. Unfortunately, most people do this backwards. They listen to the financial media and think in terms of which financial product is “best.” This is the typical approach to financial planning by most Americans.
In contrast, the wealthy person asks “What are my financial goals?” Then they create a financial strategy to meet those goals. The financial products they buy are determined by their financial strategy.
When I speak around the country, I am often asked by the audience where they should put their money. That’s the wrong question. That’s the question that will lead you to the poor house. The right question is: “What are my financial goals?” Until you can answer that question, you cannot create a solid financial strategy. And until you have a financial strategy, you cannot possibly know where to put your money.
Once after speaking at a conference in Washington, a woman who was in her 60’s came up to me to ask where I thought she should put her money. When I asked what her financial goals were, she replied, “My nest egg is all I have and I just don’t want to lose it. I want to receive an ongoing income from my investments without having to worry if I will outlive it.”
When I asked her if she had ever considered an annuity, she cringed and said, “Oh no. I hear those are bad.”
“Who says that annuities are bad?“, I asked. Her reply was telling. “That’s what I have heard on the radio,” she stated. I asked her if she always did her financial planning on AM radio. She chuckled and then continued to ask if I knew anything about an exotic currency (the Iraqi currency) and whether it was a “good” investment!
Bless this woman’s heart. Friends, this is exactly how the poor stay poor. They actually believe that the way to wealth is by picking the right financial products. Those who are wealthy, however, think strategy first, and products second.
Now I do not know if an annuity would have been right for her. That would have to be determined by her and her trusted financial advisor. But I can tell you that based upon her stated goals of creating a lifetime income stream from her nest egg, it should have at least been a consideration.
To further illustrate this point, consider this: I am a decent golfer and have a nice set of golf clubs. However, put me on the golf course with Tiger Woods and it does not matter how nice my clubs are. I could have the most expensive set of clubs on the planet and he could have the cheapest. It would not matter. Why? Because Tiger’s power is in his “swing”, not in his golf club. Its strategy, not product, that the wealthy consider first.
Your takeaway: Stop listening to the financial product pushers and instead focus on writing down your financial goals. Then, create a financial strategy for achieving those goals. Finally, consider which financial product would be best for reaching your goals. Don’t fall for the simple thinking that some products are good and some are bad. When you think this way, you fall into the financial salesman’s trap. Instead, some financial products are right for your particular goals while some are not right for your specific goals.
On this week’s program, we bring you the best of FTMWeekly Radio from the past year. But first, our good friend and Precious Metals Advisor, Tom Cloud, gives his insights on the prices of gold, silver, and palladium in this week’s Precious Metals Market Update.
Are you tired of the volatility? On this week’s show, we discuss how to create a lifetime income stream in retirement with a fixed annuity.
We have many small business owners (and aspiring entrepreneurs) in our audience. For those of you who have small businesses, you know that these are challenging times. I run several businesses and have learned that automation is a vital key of success. By automating your business you can save hours each and every day. In fact, it would be impossible for me to run our businesses without the automation efforts that we have implemented here at FTMDaily.com and many of our other businesses. Our friends over at Infusion Soft have created a good webinar about automating your marketing efforts without costing you time and money. The webinar was conducted by Infusionsoft Marketing Director Tyler Garns. Its free to watch the replay but you will need to register.
In the webinar, you will learn how to:
- Better handle incoming requests that you receive from your prospects and customers
- Make the way you perform your daily outgoing tasks more efficient
- Automatically send targeted follow-up messages to prospects
- Automatically send personalized follow-up messages to customers
By using automation, you will save time and money while getting impeccable results and doing the things you love to do aside from your business.
Are mediocre investment returns a bigger danger than an economic collapse? On this week’s show, we provide a strategy to increase your investment returns in stocks.
A British newspaper has revealed what most discerning economic observers have long known: that the Eurocrats want to create a United States of Europe with a single president.
Below is an interesting timeline that shows the rise of gold and and how the world viewed gold throughout the ages.