The Tornado – Is It Safe to Come Out Yet?
 
WHAT SCARES THE INDIVIDUAL INVESTOR SO?  What has investors quaking in their boots is the bewildering uncertainty pervading everything they see – high unemployment, confusing healthcare changes, higher food and energy prices while the FED insists inflation is not a problem, and the unimpeded government borrowing – to name a few.  Additionally, stock market investors, as the financial world grapples with the unknown – have fresh memories of the severe losses suffered in 2007 – 2009.

Our recommended course of action is to think in terms of 5 to 10 years with your stock market investments and keep an eye on the three factors reported on weekly in The “Heat Map.”  Think of the three factors in The “Heat Map” as “pillars’ that support the stock market over the long run.  Watching these three factors will lead to the right decision on stock market investing (over 5 to 10 years) in the vast majority of cases.  The cases in which The “Heat Map” may not work well are when the orderly functioning of the financial markets is disrupted by high-profile, hard-to-predict, and rare events that are beyond the realm of normal expectations in history and finance (often referred to as “Black Swans”).  We remain vigilant in search for Black Swans and intend to report on them to you in future issues of The Weekly Commentary.