These are scary times with the economy. Since artist and money usually don't mix, I asked my buddy, financial expert, Peter Tanous to give us some more tips. In last year's interview for the blog, Peter recommended buying oil stocks when oil was seventy one dollars a barrel. So if you listened to him then, you made a pile of dough. I am so pleased that Peter Tanous agreed to answer a few questions.
With these tough economic times costing us more and more just to live, what financial tips can you give to the average Joes to invest the little money that they have?
Don't try to guess when the market will bottom. You'll only know looking back at it. Make sure your asset allocation is right for you and for the times. You shouldn't be 100% in stocks--that's too risky.
Have some stocks, short term treasury bonds, TIPS (the inflation protected treasury bonds) and today, add "real assets" to your portfolio, like energy (such as Vanguard Energy fund), gold ( such as Tocqueville Gold Fund), and other hard asset investments that will do well due to rising demand and a possible rise in inflation.
With the market taking a dive these days, how should people reevaluate their portfolios? How much of that in cash?
See above.
How long do you predict the down turn to last and what can people do to protect what they have?
Downturns average less than a year and we're almost there. But the market is spooked by rising oil prices, declining house prices, and the continuation of the financial and sub prime mortgage crisis which is the biggest concern today. We need to get through the financial crisis for the market and the economy to recover. That could take a few more months.
Last year you told us your favorite dessert, this year tell us your favorite meal.
Oh, that depends on where I am! I love sushi, steaks, and great French food. And at home, Ann makes great chicken recipes that won't hurt my diet and get me in trouble with my trainer!
Peter J. Tanous is president and CEO of Lynx Investment Advisory, LLC, an investment consulting firm based in Washington D.C. His firm advises on over $1 billion in client assets for both family groups, charitable foundations, schools, and colleges. He is the author of three novels and three investment books, including the 1997 bestseller, “Investment Gurus” and "Building a Winning Portfolio."
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