In My Opinion...

We have been on a whirlwind ride with the financial markets for the last couple
of years. The markets were so tumultuous I stopped opening my 401k statement
for awhile, it severed my nerves to no end. Prices have been stable since the Obama
administration has taken office, and recently they actually spiked up. Whew!
I opened my 401k statement and had a pleasant surprise, my portfolio has
increased more in the past few months than in the past few years.

I didn't change anything in my portfolio when it went down because I understood
that I would loose money selling low. The mantra is buy low and sell high. I
actually did buy a few investments while they were low and this has helped my
portfolio even more. Many new or inexperienced investors make the mistake of
selling low and buying way too high. In addition to buying at the right time
and holding your investment until it matures, it is also wise to research your
proposed investments thoroughly before you buy so you will understand what you
are getting.

According to published reports, the current increase and stabilization of the
financial markets have been precipitated by many factors including:  1. The
increase in home sells with tax credit incentives, low home prices and low
mortgage interest rates. 2. The bank bailout of the wall street banks by the
government---the alternative would have been to let the banks fail and cause
a depression. 3. The banks are required to pay back the bailout money with
interest, and many of them already have. 4. Bailout money to the states have
prevented many layoffs and created new jobs. 5. Cutback on spending in the
Iraq war, so money will be freed up to spend in the United States. 6. The
anticipation of long overdue health care reform.

If all continues to go well with these and future proposals the financial
markets should continue to flourish for years to come.

By The Editor of Msfinancialsavvy.com
Lois Center-Shabazz