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The Aspire Review – Q4 2009 Investment Commentary

November 1st, 2009 – 4:05 pm

Our quarterly e-newsletter provides helpful tips and commentary on current events, significant new laws, and other financial planning related topics. Below are the highlights from our Q4 2009 Newsletter. Click the following link to download the full report.  The Aspire Review – Q4 2009 Investment Commentary

Highlights – We are approximately $3.73 in debt for every dollar of output in the US – an unprecedented level. Over indebtedness makes it very difficult to pull out of a recession over long periods – think Japan.

Many historical studies show that major business cycle fluctuations are caused by over-indebtedness and the fall in asset prices. Our present situation appears to mirror the exact sequence of events that have occurred in previous depressions.

Additionally, U.S. has lost 8 million jobs in this recession, and currently 17% of the labor force is either underemployed, partially employed, or out of work seeking employment. There has been no net gain in jobs since 2000.

However, rough timing of the market is NOT impossible when done right, and is indisputably better for investor’s long term returns. Significant profit margins in our portfolios are primarily driven by tactical asset class opportunities and smart portfolio rebalancing.