Good news is hard to come by these days. With announcements of new layoffs making headlines everyday and record losses tainting earnings reports all over the world, one can easily forget now may be the best time to invest in markets.
The Fed recently released numbers that showed the median net worth of the typical American family in October 2008 was 2% lower than it was in 2001 after the tech wreck. Since October, stock prices have fallen a another 15% and home prices another 2%. While seven years of wealth gains may have been erased, there has still been eight years of earnings and innovation in many companies that make them worth more than they were in 2001. Real estate aside, the crisis in the capital markets has now put most stock prices in real terms back to 1994 levels, and in many cases, valuations that go back even further.
The sale of the century is here, but wait for my signals in Real Wealth Report before diving in with both hands.
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