As the “Financial Blame Game” continues it is apparent to me the economy is not going to make a miracle turnaround overnight. It certainly took a long period of time to get in this present condition. I remember the days when it appeared all you needed to do to be qualified for a mortgage was to be able to “fog a mirror.” I had friends who were making $50,000 per year and living in $500,000 homes, apparently living well above their means.
Mortgage brokers were looking to make a buck truly, with some believing the price of real estate would never go lower. After all, there is only so much real estate in the world. Real estate buyers are also to blame. Everyone wants the best things in life; however with the benefit of hindsight the more prudent choice is to live within one’s means.
This Bail-out plan by no means is a quick fix. There are still going to be foreclosure and unemployment concerns. In my opinion I believe we are in for a lot more volatility and choppy huge swings will be more the norm than the exception. Markets need to trade out of their predicaments on their own. Having the FED coming to their aid only adds a band-aid on a gaping wound.
It is definitely apparent the savvy investment community is seeking safe haven markets.
I still continue to use and recommend the Gold market as the market of choice for my customers to participate in. We are strategizing with Call spreads. In my opinion if you are a day trader/scalper you should be using discipline / and tight stop-loss orders.
Give me a call and let’s talk Gold.
Trade Smart….
Mike Daly
Senior Broker, Manduca Trading LLC
888-282-2770