Quick! Sell any securities you own, now! Any super that you have control over, direct them to property type investments and get yourself out of the stock market NOW.

PROBLEMS
The debated rise in interest rates are a self for filling prophecy that is just begging become history. In my opinion a large amount of people have over extended themselves financially and interest rates rises amongst other actions will be required to cover institutional losses in this area (FYI the banks don’t “loose”)

We have a bunch of people that decided after RECORD gains on the stock market they should duck down to the bank and get themselves a margin loan to get on the stock market gain train. Bad news kids, the gain train was pulling into the maintenance yard as you purchased your tickets. Best sell them now to the nearest stupid person, if you can find one.

Those “stupid Ahhhmericarns” as the French so eloquently put it, are up to their turkey wings in foreign debt and are also paying for that war on terror which can’t be easy. I suspect a continuation of this philosophy cannot be sustained. Either taxes must be sort to pay “the bills” or another solution should be pursued. In any event, some of these so called ‘people in high places’ are starting to smell what they have been shovelling and she don’t smell so good.

Either way, today is Tuesday the 22nd of January and it is a big day of market declines! (Being posted before the market opens that my fat little friends is a big call.)

ADVICE
Back to my opening comments. You may sell, you may divert into property…. but an indecisive investor is a lost investor. You can no more pick the bottom of the market than the next niff. Stay the course, hold what you have (unless the debt is unpayable, both personally and security wise) and get ready to plonk some money somewhere soon. As a famous late night salesman once put it “buy in gloom, sell in boom.” We are approaching gloom, but boom is currently quite a while’s away.