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- Pray for Peace, Prepare for War…Again

Pray for Peace, Prepare for War…Again

-Is your portfolio combat ready?prayforpeace

Written by Keith Springer 8.29.13

Once again the United States is beating the war drum, this time on Syria. This is part of the problem of being the world’s policeman. Although, I still don’t understand why we don’t demand more for the role, like cheap or free oil, but that is an argument for another day. The problem each and every one of face, is managing the fallout to our finances so our investment and retirement goals and dreams don’t get derailed. Your portfolio must be combat ready at all times, especially if you are in that retirement red-zone.  

Investors are always spooked by war, especially when it concerns the middle east. The combination of a Federal Reserve Tapering and a war, has made August the worst month for stocks in over a year. The market has dropped on a number of worries: that even a “limited” US strike could escalate; Syria could strike back at one of our Allies, such as Israel; that Russia might get involved (Syria is one of Russia’s closest allies and their #1 supplier of arms). Putin has warned that if we attack, we might see weapons we’ve never seen before. All of these are legitimate worries.

In the end however, it is my bet that none of these potential disasters will materialize and this pullback will prove to be just another buying opportunity. However, we are by no means out of the woods yet. Interestingly, August has been the worst performing month out of the year, each and every year, for the past 25 years (1987-2012), and this year will likely make it 26. My concern is that September isn’t usually pretty either. It has been the 2nd worst month of the year for the last 25 years, and over the last 62 years it is #1.

With earnings season behind us, emotions will be moved by headlines: war with Syria, the Fed’s tapering concerns, and another edition of the ridiculous budget negotiations between the White House and Congress. What we have going for us is the strong calendar cycle we are now entering. If we are supposed to “sell in May and walk away”, then we are to buy in September for a strong 4th quarter. Along with that, I maintain my forecast that I believe we will have a good end of the year, but that next year will not be kind to investors. In fact, it could be downright ugly, so prepare yourself and your finances now!

 The magic mountain our economy faces is the massive baby boom generation, which propelled our economy in the 80’s and 90’s, is well past their peak spending years and has stopped spending. As I discuss in Facing Goliath – How to Triumph in the Dangerous Market Ahead, for an economy to grow there must be spenders, many more spenders than savers. That will not happen until the next generation of spenders, the echo-boomers born between 1982-1994 like my son Josh, enter their peak spending years. This won’t happen for another 5-8 years, so don’t plan on a long-term bull market to rescue your portfolio and threaten your retirement dreams.

 There will be a time to be invested, and there will be a time to be defensive in the months ahead, and of course money can be made in any market…if you know where to look! My job is to help ensure your finances are properly aligned with your retirement goals and dreams, to make sure your portfolio is getting the best returns with the least risk possible, that you have a retirement income stream that won’t go away, that Social Security is taken at the proper time, and that elder care is part of the planning so most or all of your nest egg is not destroyed by catastrophic illness. If your adviser is just talking to you about your investments, you are missing the boat and guess who pays the price?…You do!

…… and that’s where we can help. To learn more about our comprehensive financial planning approach, 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: 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.