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

Smart Money with Keith Springer Newsletter- Bernanke Plays Santa, Fed Delivers Christmas

bernankehatBernanke Plays Santa
Fed Delivers Christmas

Written by Keith Springer 12.20.13

Ben Bernanke was dressed in his Chris Cringle Sunday best for his encore FOMC appearance, where he delivered the Christmas goods.

“The Grinch will not steal Christmas,” Bernanke cried, “To prevent such an unthinkable thing,  I will keep the fiscal stimulus flowing; Although I may taper, our purchases are not done; And interest rates will stay at zero for years to come!”

I hope you don’t mind that I have taken more than a little poetic license with his words, but the message is clear. As he put it:

“Highly accommodative money monetary policy remains appropriate. This will remain the case until unemployment falls well below 6.5% and inflation returns to 2%. The Fed balance sheet will continue to expand.”

Is this creating yet another bubble? You betcha! That is all the Fed can do in this demographic downdraft where our population is aging, turning spenders into savers, just as I have examined in depth in Facing Goliath – How to Triumph in the Dangerous Market Ahead.

However, this will certainly help stocks in the short term. We are coming off one of the worst year for bonds in memory, and only the 3rd time in 4 decades that bonds have lost money. We think that trend will continue and investors should focus on equities, albeit cautiously. This does step up the risk level but given the environment, it appears warranted.

Don’t let emotion get in the way of investing. The pro’s don’t, and that’s why they do so well. You may feel like it is time for the next show to drop on the economy, but remember one thing, the market can stay irrational longer than you can stay solvent! In difficult markets like this, it is ever so important to be the expert or hire one. I can honestly say that in my 29 years of managing money professionally, I have never seen a more difficult time.

As an investor who needs their money to properly work them in order to retire comfortably and on time, you cannot just sit in cash waiting for the next crash or even an entry point. Money is the bank is simply losing money safely. You can’t throw caution to the wind either. Having the right plan is the most important thing of all. The key is to be properly invested so you are getting the very best returns necessary, but with the least risk possible. The Springer Investment Approach is designed to do just that by managing risk and delivering returns, in any market.

…… and that’s where we can help. To learn more about our powerful proprietary Investment Management Strategy and/or get a free second opinion on your portfolio, simply reply to this email, or give me a call for a no-cost no-obligation consultation today at (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.