The Next 3 Years
/I woke up this morning to CNBC and more negative earnings results, and thought back to my days as a financial advisor and venture capitalist. Its never been more difficult for the average person to invest in the stock market and don't look for that to change anytime soon. People are waking up to the reality of this economic crisis and wondering if they should get out, buy more, or just keep their eyes closed and hope for the best. Trust me on this one folks...this is going to get ugly before its all over. The average mutual fund investor is going to start freaking out when they see the market hit new lows in the coming weeks, because the concensus is that the government has things under control (finally).
Quick Question: have you ever known the government to have things under control?
(This is the point that I have to recommend Ron Pauls best seller "The Revolution". If you think that big government is the answer, then this is a must read for you).
However, here's what I know to be a given; the "global supercycyle" is still very much intact and there are significant opportunities....right here, right now...that long term investors should be acting on. China is still growing their GDP at 8-10% per year. India, Russia, Brazil, Malaysia, the Philippines, Vietnam, and others in the region are not far behind.
So, what does this mean for us? Massive opportunity! Our favorite global ETF's for one....incredible buys at these levels. Energy is still very much a supply/demand story, and should be bought on this pullback. The same goes for the miners of course. This is the beauty of dollar cost averaging. While it may feel painful to buy more at lower prices, your reward will come in the next 3 years...with vastly superior returns.
Kip Herriage
Editor, VRA
