THE JALBERT REPORT
November 2009

Dear Friend,

Welcome to "The Jalbert Report", a weekly newsletter designed to provide you tips and updates so that you can "Live Well" during your retirement years.

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Enjoy reading!

Russ

Quote of the week:

"When it comes to the future, there are three kinds of people: Those who let it happen, those who make it happen, and those who wonder what happened."

John Richardson

This represented a drop of approximately 260 points, or about 2.6%.

Actually, Monday through Thursday's movements pretty much canceled each other out. But Friday was ugly, with a 249.85 point drop.

Really, the question is what happened on Friday? That was when the markets really turned South.

In many respects, I believe that investors are starting to fear that the economy is not going to recover as quickly as they hope, and current market values are assuming a quick recovery.

In fact, last week this came out front in center in the following article:
READ FULL ARTICLE>>

So what does that tell us going forward? It all depends on the rest of earnings season. But remember what I told you last week. Investors have raised expectations, making it harder for companies to come out with positive numbers.

It wouldn't surprise me to see more of the same (ups and downs) over the next few weeks.

Here’s a few bits that I found reported on Yahoo Finance:

If you've been paying attention at all to the financial news, the gold bugs are out in force, talking about how inflation is coming, and hard assets like gold are one of the only safe havens available.

They are all pretty much predicting the same thing - government spending leading to high inflation leading to the price of gold moving up from today's number (about $1,000 / oz) up to over $2,000 / oz.

However, some gold experts are starting to issue warnings that gold may go down before it goes up, and that downward drop could be substantial.

Here's a great article from "Smart Money Magazine" on why:
READ FULL ARTICLE>>

In essence, the argument against gold is this:

Gold is priced at $1,000+ / oz right now because investors are predicting high inflation in the near term, due to government spending deficits. However, to get inflation, you need more than just government spending deficits, you also need an economy that's running on all eight cylinders.

Given that our economic rebound is anemic, at best, it will be some time before the economy is running strong. That means that inflation is not likely going to be a short term problem, but instead, one that we will likely face later, not sooner.

If inflation is a later problem, and not sooner, then gold investors will soon have a problem. If the price of gold is where it's at because investors are expecting inflation in the short term, and it turns out to be a later term problem, then the price of gold will fall.

And many gold experts (those NOT selling it) are saying that this price drop could easily be 30% - 40%, and it will likely happen fast.

Who will be right? Only the future will tell. But I believe that buying gold right now is very dangerous, and recommend against any large positions.

If you would like to talk to me about anything discussed above, please feel free to call our office at (877) 807-SAFE(7233).

Russell K. Jalbert CFP^®, one of the nation's leading financial professionals, has advised successful individuals in the management and distribution of their wealth for more than 35 years. Russ has discovered many alternatives to conventional investment practices. His priority is to educate people to understand they don’t have to accept risk in order to grow their money.