Retail Investors Calling it Quits

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Sam Townsend

Here we take a penetrating look behind today’s headlines as they relate to health, wealth, and sustainable living success from Abundant Sustainable Living advocate Sam Townsend.  Sam is the author of the popular  Time to Head for the Ark  (www.TimetoHeadfortheArk.com) guide to Abundant Sustainable Living.  Sam, a “recovering banker and economist”, businessman, consultant, investor and author offers a unique perspective and helpful approach to improving your life and the lives of those you care about most in these turbulent “Harm’s Way” times.

 

The News . . . and What’s Behind it

“Retail Investors Calling It Quits?”

“You can think you’ve achieved your investing goal after years of holding on and then lose everything in five minutes.”

That’s a quote from a Massachusetts English professor that Jason Zweig related in his “The Intelligent Investor” column in yesterday’s Wall Street Journal. Zweig entitled his article, “Will Small Investors Quit?” He went on to explain that many already have.

In the notorious “Flash Crash” of May 2010, the Dow Industrials lost 1,000 points in five minutes. Was that a preview of coming attractions in an overly leveraged and stressed hair-trigger world of high-stakes computer assisted speculation?

Zweig reported that a quiet “flash crash” at Wednesday’s otherwise placid market open – in a matter of seconds – savaged prices by 10% or more for nearly 150 stocks that are household names like American Express, Harley Davidson, Nordstrom, and Berkshire Hathaway. He added, “But make no mistake: The hearts of many small investors have been broken by the serial setbacks of the past few years.” “(quoting a NYC lawyer) ‘The game is stacked against them . . . they feel that no matter what they do, they’re going to be late to the game and probably wrong’ . . . ‘The financial community has a vested interest in making the markets so complicated that the individual investor can’t understand them anymore . . . Then people will have no choice but to accept lower returns and turn to “professional” management’ (says the Professor).”

Not surprisingly, professional investment management is taking its lumps too . . . “more than $129 billion gushed out of U.S. stock funds in the 12 months ending in June . . . in July, roughly another $7 billion leeched away. . . . Chalk it up to years of volatility and disappointing returns, as well as the rise of electronic trading.”

Volatility and spikes from electronic trading in financial markets are symptoms of even more fundamental threats and concerns facing investors today. Many investors have moved to cash or are looking for alternatives to stocks and other conventional investments. That the news is not good for the future of stocks, bonds, annuities, and other conventional investments I discuss in greater depth in our multi-media publishing, including “Sam’s Blog” at www.PreparedALHWays.com.  (www.preparedalhways.tygmedia.com/archives/category/samsblog)

So what DO investors do about today’s troubling news?

What to Do About the News

In today’s turbulent times, sustainable living investments can help an investor protect his capital and gain acceptable returns, while moderating risk in ways that he or she can actually monitor and evaluate. This can be achieved in ways that directly enhance their lifestyles and the lives of others who may depend upon them – in good times and in bad.

Diversifying into these largely tangible and essential asset investments can preserve capital, produce returns, and complement lifestyles in good times and bad – and in ways that conventional packaged financial/investment products cannot. Managing our lives – our health, wealth (or lack thereof), in ways that hold a reasonable prospect of enduring in increasingly turbulent times – requires that we be prepared “always … and in all ways”.

Be PreparedALHWays

Many people are concerned about the serious nature of today’s problems that in many ways are unprecedented. ALHWays LLC publishes “What To Do About the News”(TM) at www.WhatToDoAboutTheNews.com – a relevant multi-media commentary on today’s headlines and what to do about them that applies lessons learned and strategies we present.

A timely example where I share news and commentary of economic and social significance is my July 23rd Blog “Sinkholes, New Bull Markets, and Such” (www.preparedalhways.tygmedia.com/archives/998). Recognizing what’s really happening and what it means to us requires that we look behind the economic, geo-political, and social change news in order to be prepared.

PreparedALHWays(TM) and its related sites, media and growing network of colleagues, associates, and business and ministry partners are coming together to help people live and work well in local economies, especially as our Creator designed and provides. We emphasize its three key aspects of Health and Wholeness; Wealth and Resource Management; and Abundant Sustainable Living in local communities and economies

www.PreparedALHWays.com, published by ALHWays LLC – ALHWays(TM) is our acronym for “Abundant Living in Harm’s Way – always and in all ways”. This portal Web site features multi-media publishing, programming, and analysis related to the rapidly growing sustainable living movement. Being PreparedALHWays(TM) helps families, businesses, and individuals benefit right where they live and work. We help people, communities, and businesses connect with the thinking, expertise and other resources useful in developing local, satisfying and sustainable solutions tailored to their unique needs and circumstances.

We welcome the opportunity to answer your questions and/or to address your specific needs. Your future is our priority and we look forward to helping you plan and implement your own “Harm’s Way Solutions”.

Contact Sam: SamTownsend@ALHWays.com
Learn more: www.PreparedALHWays.com