Yesterday, Europe received some intense pressure to get its house in order, and no matter how irrelevant the rating agencies are in my eyes, they are, nevertheless, important to others. Thus, the threat of a massive credit-rating downgrade from S&P just might jolt the powers in Europe enough to quit politicking and finish putting together the deal that is almost there. In deference to the reader I responded to yesterday, the one who wants me to be more resolute about my “predictions,” I would say the actions of the S&P just might be the catalyst to get the job done, and if they do get the job done, I firmly predict the next two months will be bullish. That is assuming, of course, the geopolitical world does not come unhinged, that the price of oil does not take off to stratosphere, and another natural catastrophe does not take a major economic player out of the game. Well, my friend, I tried; I really tried …
Speaking of that reader, I received commentary regarding my response to him. Oh, and don’t forget, I still have the question from yesterday that I did not get to answer …
Yes, your answer was right on! You nailed it! I believe your reader wants you, or someone else, to do his or her work, to tell him or her what to pick and when! Ah, the whole crystal ball request! As I wrote you last week, I think Europe is heading towards resolution and the US market is still headed up. Is 13, 000 on the Dow by the end of the year a reality? We shall see!
So now to the question I have held back. I must admit, the question is unlike any I have ever received for this column, and I do have to wonder if the reader is pulling my leg, as the question is huge, and it has absolutely nothing to do with the focus of this column. So, here it is, and since the reader did say “please,” I guess I will go along …
Please can you give your views on what happens when we die?
Talk about asking for prediction. I have to say the question is quite a bit above my pay grade, and I have no research to back up any answer I might give, so I cannot offer an answer even close to definitive. I can offer an opinion and that is this – when one dies, the financial issues of Europe and the rest of the world probably won’t matter much. Now, if this is true, I would then say one probable outcome when we die is that all the stress around working our money goes away.
This answer might not be what you are looking for, so I would suggest consulting one of the many services out there that do provide predictions about the after-death experience. Most all have been in that business for a long time, but it just might be that you will have to do your own work on this, as most all those services provide answers that are often strikingly different from one another, much like market analysts. While you are still here, though, I would encourage you to do what I suggest five days a week – invest in your life. Now, onto my piece of good news for today …
Car sales in the U.S. rose to the highest level in two years in November. U.S. car sales hit an annualized 13.6 million in November, which is the highest level since the “cash-for-clunkers” boom in August 2009. This number is still a far cry from the 16-17 million cars per year that were sold in the country prior to the Great Recession, but it’s a healthy jump from the 10-11 million trough in the years that followed.
I guess the consumer is thinking as long as he or she is still here, driving a new car is worth it, and that is an example of good investing.
Trade in the day – Invest in your life …
