Bad News can be Good News

[Carlo Ferrari]

The newspapers do not make pretty reading these days for the general investing community. There seems to be no good news out there if you are invested “long” with a stock portfolio, or in typical investment funds or real estate funds. Financial traders, however, are having a better time of it as they are free to trade the “short side” of the market and generally have strategies that profit from downturns. Here are a couple of news extracts that illustrate disturbingly, the current malaise.

“Americans filed for bankruptcy in growing numbers in February, buckling under the combined weight of rising energy prices, a weakening housing market and sky-high personal debts. “An average of 3,960 bankruptcy petitions were filed per day nationwide last month, up 18 percent from January and up 28 percent from a year earlier, according to Automated Access to Court Electronic Records, a bankruptcy data and management company.
“February was the busiest month for filings since Congress overhauled the bankruptcy law in 2005. Bankruptcy experts said the rise was particularly worrisome because those changes made filing for bankruptcy more complicated and expensive.“The latest figures show the financial pain is spreading from states like California and Florida, which exemplified the housing boom and subsequent bust, to those along the Eastern Seaboard like Maryland, Virginia and Delaware, which were among the 10 states with the largest percentage increase in filings in January and February. “

New York Times
__________________________________________
“Fears of a recession in the United States stemming from the subprime mortgage crisis have hammered the dollar, driving it to successive record lows against the euro and pushing it close to the psychologically important 100-yen mark.
“‘The yen is benefiting firstly from risk aversion, which is the weakness in the equity markets across the globe. The second is that the interest-rate compression between the dollar and the yen is starting to become very substantial,’ said Boris Schlossberg, senior currency strategist at DailyFX.com in New York.
“Investors often borrow in the low-yielding yen to buy high-yielding currencies and assets. In periods of uncertainty, they tend to unwind these trades, boosting the Japanese currency.”
Reuters Mark Twain once said the return of his money is more important than the return on his money. Many investors get into this same mindset when they look at the market during volatile times like the current environment.
So why would we even begin to suggest that you try to time the market? It’s simple. That’s how you make money over time, at this point in time.
That indeed has been the question since the dawning ages of the market. Listen to the average financial advisor and they’ll tell you to put your money in the market and forget it. we have all been brought up in the industry with this exact viewpoint. But it’s one that we no longer subscribe to, obviously. The idea that the market gyrates up and down scares the heck out of many investors, so why do we like so many others time the market? One word - opportunity.
Gold isn’t the only thing you can count on in a crisis. Human behavior, as far as the market is concerned, also behaves in a dependable way!

Technical analysis is full of recognizable market patterns that repeat themselves over and over again, because basically human nature doesn’t change.
Twenty years ago, the “average” investor didn’t know what the market did on a weekly, or even monthly, basis. This was the business of their broker. Now, due to an incredible combination of information, technology, and a hands-on attitude, the “average” investor has been thrust into the market’s daily trading activity.
Through 15 plus years of experience in the field, we can say with certainty that the average investor is much better off being out of traditional investments, as long as they have the right tools in their toolbox.
Think about it, during the recent market decline, if you had dodged just three percent of the decline and then put your money back to work, you’d have increased your net return by that three percent. You’re now ahead of the “average” investor when the market finally comes around.
This is why we are still producing such good results for our “Club Members” or our “Guru Subscribers”. Why? Because we know how to time the market for you, extracting profits in a low risk manner in volatile market conditions!

More than ever you need to learn from us exactly how to trade the markets on the downside as well as the upside if you want good results from your investing in the next couple of years! So Subscribe to our "Guru Alerts" service today and start trading the market both ways for superb results.
See our Guru service page at. www.ferrari-financial.com