Your New Stock Portfolio

May/11/2009 18:43PM
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Like it or not, you have a lot of new stocks in your investment portfolio.

For years you have owned stock in the United States Post Office. Never made a profit, always required more and more of your money to keep it afloat. Bad investment.

Then you’ve invested in Social Security. This week the government budget office announced that cash flow has gone south. It may be overdrawn as early as 2016 now. Too many people unemployed and not paying into the fund. The company may have to borrow money to keep paying dividends. Bad investment.

Years ago you bought Medicare. Another bad investment.

Then you bought some Amtrak. Never made a profit. Bad investment.

You also own stock in the FHA. Recent press releases show the FHA may be the next Fannie and Freddie. Fraught with bad mortgages. Of course you insure 100% of those bad mortgages. That’s what your company insured. Bad investment.

FDIC is in your portfolio. They need more cash also. Another bad investment. Freddie and Fannie caused a big part of the current recession. They need more cash too.

Don’t despair. You are getting some more nice stocks. AIG, Bank of America, GM, Chrysler, and who knows what may be coming next.

If your broker, investment advisor, or money manager tried to sell you any of these stock, would you have agreed. Not likely. Do you remember being asked? I don’t.

You have a new money manager, it’s the Federal Government. They seem to think it’s in their power to manage your business however they see fit. They tell you they know best what’s a good investment for you. So far the track record is pretty bad.

So when you sit down at the kitchen table and look at what’s happened to your assets in the past two years, don’t forget to add these to the pool of things you worry about.

There is no free lunch. And, it’s your money going into these decisions. Maybe that’s why there were tea parties. It wasn’t rebels and fools who attended these protests, it was people who realized what the government was doing with their money.

The fools are the talking heads on TV who don’t realize this yet.

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