Reames Financial

Down to 8.3%, how cool is that?

No BS Weekly Update  2/6/2012
In This Issue
Looking in the Mirror
Cool Stuff
Secret Lives of Links
Good Eats

QOTD

 

"Never invest in any idea you can't illustrate with a crayon." ~Peter Lynch

 

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Dear  ,

 

8.3%!

 

The new unemployment number came out on Friday and it was a great number.  Down to 8.3%.  Fifth monthly drop in a row.  This is really great news, isn't it?  What was the cause?  Take a look at this headline.
 
headline
(Click to read article)

 
So what could be wrong with this number?  Let's listen to Rick Santelli of CNBC explain!

 

Santelli
(Click to watch video)

 

For a more detailed analysis of the newest unemployment numbers you can take a look at this article from ZERO Hedge that Rick Santelli referred to in his rant.
Zero hedge

Zero Hedge 2
(Click to read article)

 
And here.

 

Zero Hedge 3
(Click to read article)

 
Now on the positive side we have created 917,000 jobs in the last 5 months and that is not insignificant.  My only question is which was really more responsible for the drop in the unemployment rate, the 243,000 jobs created or the fact that 1.2 million more people dropped out of the calculation.


But the Market Loved It!

 

How do you explain that?  The market rallied on the news on Friday, ending up 156.82 points on the Dow.  The S&P 500 and the NASDAQ also ended up on Friday.  So the question becomes does the market know something we don't?  Or is it just blind optimism and hope?  Is it time to get back in the market and become bullish or is this just another example of the market trying to fake us out and separate us from our money?


Maybe This is a Clue


As you know, nobody knows for sure, nobody has a crystal ball.  But let's take a look at a few headlines from the recent past to see if we can get a clue. 
 

Warning 1
(Click to read article)

  

Warning 3
(Click to read article)

  

Warning 4
(Click to read article)

 

Warning 6
(Click to read article)

 

Our Take


In my opinion folks, something is fishy here.  It really reminds me of the time before the last crash.  As an investor what is one to do?  On the one hand if the bull has resumed we don't want to miss it, on the other hand if it is the tail end of the bear market rally, we don't want to get sucked in and slammed in the next wave down. 

  

With all of these continued warnings I think the key question you have to ask yourself is which will make you feel worse, missing out on a rally or losing a bunch more money if it crashes again.  And then take action accordingly.  Let me leave you with one final article before we move on.

 

Futile Warning
(Click to read article)

 

Tired of Low Interest Rates?


If so you might want to check out our recording of the webinar that we did last month called Stepping out of Cash-Strategies for Putting Cash to Work.  It offers some great strategies for putting your cash t work harder for you.  This is a recorded webinar so you can watch it at your leisure.  Let me know if you have any question. 

  

(Click to see free webinar)

  
Until next week , Protect Your Wealth! 

 

Sincerely,
Phil's signature in blue

 

 

 

 

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Week In Review
Social Security Trust Fund Outlook Takes $1 Tril Dive(IBD)

RF: Looks like it will run out even sooner. Don't know why this is news. In 2010 they announced that because so many people had retired early because of the recession that Social Security was paying out more than it took in and that wasn't supposed to happen until 2017. Then for the last year or two the governement has had the insane policy of a tax holiday for Social Security by lowering what they are taking out of everybody's checks. Let's see; more money going out than expected, less money coming in than originally planned, where do they think the money went? Duh!

Biggest Holders of US Government Debt(CNBC)

RF: Guess who owns the most US debt now, you may be surprised.

Latest Congressional Budget Outlook For 2012-2022 Released, Says Real Unemployment Rate Is 10%(ZeroHedge)

RF: You mean the governments numbers are bogus? Say it ain't so!

Pfizer's Birth Control Pill Mix Up Could Cause Unintended Pregnancies(ABC)

RF: Oops!

Laughter

Cartoon 

COD1
Cod2
www.chartoftheday.com
Growth 
Succes isn't difficult. It just depends on How Bad Do You Want It?
Succes isn't difficult. It just depends on How Bad Do You Want It?

Link
 Dare to take the mystery link challenge? 

 

We can't be held responsible for the time you waste or the knowledge you gain by clicking this link!

 

CLICK HERE IF YOU DARE!
Good Eats
This is a favorite winter recipe in the our household.  One change that I make to the recipe is the I don't cut the peppers in rings, I chop them up.  Presentation wise it probably looks nicer as rings but as I don't feel like cutting them up as I eat them!  We like to serve this over pasta or rice although I'll bet it would be good over mashed potatoes also.
Creamed Brats
(Click to Print Recipe)

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Phil Reames

Reames Financial

1856 Skyler Dr.

Kalamazoo, MI 49008

269-349-3966

preames@reamesfinancial.com