In the last few weeks the
pundits are questioning the viability of investing in equities.  As a
result of the financial crisis, equities and real estate are down 30-50%, while
US government bonds (Treasuries) have had strong positive returns.   
Furthermore, the pundits say that over the last 10 years the performance for
equities is now below that of bonds.  (Keep in mind that when they speak about equities,
they are speaking about the S&P 500, which is only one investment category.)

 They ask:  Why take  on the
additional risks of equities when you don’t even get rewarded over a
longer timeframe of, say, 10 years?  Why
not buy Treasuries and decrease your
risk, uncertainty, and stress and still make as much money as you would in
equities?

 While
Treasuries might appear to be the safe haven, buyer beware!

 At this point in time, the
expectation for Treasuries is that they will do much worse than equities in the
coming years. Treasuries are also vulnerable to inflation (which is becoming a
more likely possibility).  Therefore, a bond-only portfolio is far riskier
than we might think. 

 There are two important rules in
investing: 

 1)  Buy low, sell high.
(Bonds are at an all-time high, stocks are at an all-time low.  Your
choice is simple.)  

In the last few weeks the pundits are questioning the viability of investing in equities.  As a result of the financial crisis, equities and real estate are down 30-50%, while US government bonds (Treasuries) have had strong positive returns.    Furthermore, the pundits say that over the last 10 years the performance for equities is now below that of bonds.  (Keep in mind that when they speak about equities, they are speaking about the S&P 500, which is only one investment category.)

They ask:  Why take  on the additional risks of equities when you don’t even get rewarded over a longer timeframe of, say, 10 years?  Why not buy Treasuries and decrease your risk, uncertainty, and stress and still make as much money as you would in equities?

While Treasuries might appear to be the safe haven, buyer beware!

At this point in time, the expectation for Treasuries is that they will do much worse than equities in the coming years. Treasuries are also vulnerable to inflation (which is becoming a more likely possibility).  Therefore, a bond-only portfolio is far riskier than we might think.

There are two important rules in investing:

1)  Buy low, sell high. (Bonds are at an all-time high, stocks are at an all-time low.  Your choice is simple.)

Q :
I am a 52 year old woman and in 1980 I broke my back and was paralyzed from the waist down.  Wayne Dyer came to see me and encouraged me to walk again and I do but am in constant pain.  It is difficult to work alot. I collect worker’s comp and make a small amount on my own.  I am now 4000.00 in debt  plus my car loan of 8.000 dollars.  I am barely making it and have trouble not flying into fear.  What  suggestion can you give me to stay calm and not so scared.

~C.V.

A :

1. Find a friend who has no agenda with each others  financial ally or money mentor and meet 4 times a year w/this person to review your finances.
2. Start collaborating with your friends; you might surprise yourself with a new source of income.
3. Do the Intentional Spending statement that’s on my website, under tools and resources on the home page.
4. Read my book – it is all about getting out of fear and into your creativity and wisdom around money
5. Do the money breath everyday that’s explained in book.

Good luck and remember that there are billionaires in poor health who would envy your situation.