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

Market Strategy – Lookin’ pretty good, for now


At the moment the correction might be over, as the market seems to be getting past the European crisis and many have a “glass half full” belief in the economy. Things should do pretty well for the immediate future…at least until something makes it stumble. That stumble could very well come from the next GDP figures that will be announced at the end of July. If those numbers are good and people are spending again, we are in for a new multi-year bull market. If, on the other hand, the numbers come in lower than expected (as I predict), this rally could come to a screeching halt.

Naturally nobody knows for sure, so I remain open-minded and ready to participate if things are good or if we need to get defensive. A good way to play this may be to participate until we get close to the GDP release date. At that point either raise some cash or place some hedges on your portfolio and try to make it somewhat market-neutral. Because our goal is typically to get 70-80% of the upside of the market with only 30-40% of the risk, we are happy to take that approach. If it turns out better than expected, you might miss out on a little bit of the rise before you get back in or take off the hedges. However, if things turn ugly you’d be protecting yourself from an absolute catastrophe.

Regards – Keith Springer

Springer Financial Advisors

1383 Garden Hwy, Suite 200

Sacramento CA

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: 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.