Sunday, September 23, 2012

I'm Not Feeling Wealthier from QE3

"Fool me once, shame on me, fool me twice shame on me." ~ proverb

A stated objective if QE3 was to increase the values of stocks, causing investors to feel wealthier and spend more.  Despite the market being up and my stocks being up, I don't feel one bit wealthier.  Why?   Simply, I don't feel the gains are permanent, sustainable nor certain.   I fully expect my stocks to lose their gains over the next few months as the effect of QE3 declines quickly.

My model for the stock market is the action of 2007, where the market peaked in Q4 just as the Great Recession started.  In late October 2007, I doubled my equity investments.  This time I'm holding back and will take advantage of a continued stock market rise by executing some company stock options that I still have since retiring.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial or investing advice. Please consult a professional advisor.

Copyright © 2012 Achievement Catalyst, LLC

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