Smart Money with Keith Springer Saturdays at 1PM and Sundays at 6AM on NewsRadio KFBK 93.1 FM and 1530 AM

Market Brief – The world in turmoil

05/25/10

The markets are acting crazy again today on the increased tension between North and South Korea. We haven’t had a geo-political event in a long time, and unfortunately they always jolt the markets. In the end, nothing will come of it. Kim in North Korea is simply puffing out his chest and to get some attention. We have thousands of troops stationed there with enough weapons to put…or rather keep North Korea in the Stone Age.

The European banking crises is also weighing on the markets, as 4 Spanish banks said they would join due to a push by regulators to merge with stronger partners. Although the European banking crises is a serious problem, they don not have tons of unknown toxic assets on their books like we did 2 years ago so it won’t be as bad as some are predicting. Yes, Greece will go through a depression, but it won’t bring down the EU or the world.

As for our markets, they are actually doing OK, having successfully retested the recent lows for the second time this morning, which I mentioned was not only likely but necessary in my last week’s commentary. The funny thing about corrections is that everybody agrees that we need them, but when we are in their midst people freak out. although that’s a bad thing for our hearts, it’s a good thing for the markets. In fact, it is very likely that we are finally seeing a selling climax or capitulation here, with a strong rally soon to follow. In any event, we are prepared for both scenarios.

Feel free to give me a call with any questions or concerns.

-Keith Springer, author of Facing Goliath
916-925-8900

Springer Financial Advisors ("Advisor") is a federally registered investment adviser located in Sacramento, California. Advisor and its representatives are in compliance with the current filing requirements imposed upon registered investment advisers by the Securities and Exchange Commission and the State of California. Advisor's web site and its emails of general distribution are limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Advisor's web site on the Internet or dissemination of informational emails should not be construed by any consumer and/or prospective client as Advisor's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. A copy of Advisor's current written disclosure statement discussing Advisor's business operations, services, and fees is available from Advisor upon written request. You may also obtain publicly available information about Advisor through the SEC website as follows: http://www.adviserinfo.sec.gov/IAPD/Content/Search/iapd_OrgSearch.aspx. Advisor does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Advisor's web site or incorporated in an email, and takes no responsibility therefore. All such information is believed to be reliable and authoritative but does not constitute sufficient information to be the sole basis for sound investment decisions and all users thereof should be guided accordingly. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Advisor) made reference to directly or indirectly by Advisor in its web site, email, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client's investment portfolio. Certain portions of Advisor's web site (i.e. articles, commentaries, etc.) may contain a discussion of, and/or provide access to, Advisor's (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. The information is of a general nature and should not be applied indiscriminately to particular situations wherein it may not be completely applicable. Advisor is neither an attorney nor an accountant, and no portion of the content should be interpreted as legal, accounting or tax advice.