Ken Dolan: Hi everybody, we’re the Dolan’s. I hesitate to even think of doing this video but a lot all of you are asking the question, a lot of you Dolans.com members by the way.
Daria Dolan: I saw that.
Ken Dolan: Yeah, never mind. And of a lot of you Dolans.com member, we’re so glad you’re members of our family. Hope you’re enjoying all the video and all the other things you don’t get in the free service. But here is the deal. Is now a time to be buying stocks? First of all, hold on. Let me define a bear market. A bear market is—
Daria Dolan: Which this is.
Ken Dolan: All right, a bear market is a prolonged period in which investment prices fall accompanied by widespread pessimism and one of the most famous one was let see from March of 2000 to October of 2002, when 929 days are very long bear market. Bear market lesser for 929 days and Daria in a written piece which you probably in Dolans.com says the average bear market takes about 3.3 years to recover from it is to get it back—
Daria Dolan: To get back to where you were when it’s stride.
Ken Dolan: All right now, don’t get crazy. There are things you can be doing. We don’t think that commitments, new commitments of the individual stocks or mutual fund—now is the right time, we’ll give you some alternatives.
Daria Dolan: And that’s not to say—
Ken Dolan: But why?
Daria Dolan: That is not to say that even in a time like this, there are certain companies, if you’re able to find them or you find a portfolio manager of a mutual fund company who’s able to, they’re going to continue to grow because of the need of consumers. But overall, this is—
Ken Dolan: No throwing darts.
Daria Dolan: You can’t throw darts. It is not time to wait into areas like financials. I don’t care what the Wall Street people say, don’t forget they work for these financial companies and have invested interest and watching their participation in their state.
Ken Dolan: The more sub prime stuff, there’s more sub prime stuff coming about.
Daria Dolan: Not to mention the fact that certain legislation is now come out of Washington D.C. regarding Fannie Mae and Freddie Mac, and the housing bailout and everything is going to weaken the dollar further, at some point, there’s going to be, we’re trying to see a slowdown in one of our major trading partners which is Western Europe, which means that as much as our goods are cheaper over there and they’ve been buying them right along, they’re not going to have the funds to do it. We’ve got a worldwide cash crunch and probably the worst scenario economically on a global basis that we’ve seen since the 1930’s. It’s not time to be buying stock and its time to be watching what you do on so that you make sure that you're comfortable with any losses you may find there.
Ken Dolan: Now, we’re going to take a lot of heat for telling you that we are very, very conservative right now, that you should be looking at the laddering some CD’s. Now we’re talking the most conservative time of investment. Is there a time—there’s always time for manageable risk. All we’re saying is be really careful right now.
You can look at laddering some securities or certainly look at some taxable and non-taxable bond or some interesting buys there, especially in uni-bonds that compare with treasuries, some very good municipal bonds are there, some dividend paying stocks. Stocks with the dividends have been going up consistently in areas that are if not recession-proof, are recession-prone. So we’re not saying do nothing because doing nothing is the worst thing. All we’re saying right now is to be conservative and very, very cheap with new stock commitments.
Daria Dolan: Because the one thing that Wall Street refuses to admit to the public like yourself is that no one should ever invest in something that doesn’t carry a guarantee. You know the words that are carry some risk no matter what the degree, if they can't afford to lose some of that money going into the investment.
Ken Dolan: No.
Daria Dolan: You have to assume that in this type of an economic environment, you will have losses. Can you stay the course? And better yet, what your intestinal fortitude level? Will you stay the course—
Ken Dolan: And then one thing is a triangle.
Daria Dolan: —when you’re confronted with losses?
Ken Dolan: No.
Daria Dolan: The average person walks away usually as the worst person, worst possible time, which is why we’re saying, if you can’t afford to lose any of the money that you’ve got invested—
Ken Dolan: Stayed guaranteed.
Daria Dolan: —get out now. And for heaven sake, if you can't afford to loose a piece of what you invest, you shouldn’t be there in the first place. Do not be looking to be that buying stocks now.
Ken Dolan: The Dolan bottom line right now—
Daria Dolan: Or mutual funds.
Ken Dolan: All right, the Dolan bottom line right now, is stay as close to cash and guaranteed as you can. We may change your tune as we go along. That’s what it is now. Be careful.
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