March 13,2007
Hello,
The Sub prime mortgage market continues to be the point of contention. The issue now is to gauge the depth of how far reaching into the over all financial system. At this juncture with interest rates still very low and many of the defaults concentrated I am not sure we will see the contagion that many fear. The structure of mortgage companies suggest to me that the net of effect of the current sub prime debacle will be to slow down the real estate business even more as lenders raise credit standards and perhaps hurt some of the providers of capital to sub prime lenders or lenders of last resort. This should provide investors with many opportunities to pick up financials and some backs at discounts, but do your home work !
Ok so you didn’t panic .Weather you stayed cool or are just in plain denial now is the time to reposition your portfolio for the next move. Investors need to have an action plan. Rank your holdings into one of four groups,
The stocks you want to buy no matter what.
The Stocks you'd buy if they dropped in price.
The stocks you'd sell if they moved higher.
The stocks you want to sell. Period
Now is the time to sell stocks you want to sell, period and use that cash to reconfigure your portfolio.
James Foytlin
Investment Representative
Horwitz and Associates
1(866)492-3959
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