Monday, November 19, 2012
As I wrote in my last post, don't panic. I don't know how your portfolio is doing in this wildly gyrating market but mine has bobbed to the surface. I am now $176 into the black for the year.
I was forced to remove more than thirty thousand to meet my and my wife's expenses this year. That's more than I like to remove but I'm comfortable with the such a large withdrawal now and then. Heck, if I live into my 70s the government will force me to withdraw even larger amounts. I've got to give that some thought and be prepared if I am lucky enough to face the problem.
I am not panicked by the fiscal cliff the U.S. is racing towards. My gut feeling is that it is more of a fiscal slope. I believe the slow but plodding recovery in the States will continue. Europe is going to provide a steady diet of financial shocks in the coming year but it looks as if it is weaving its way through the financial mine field. In China, the economy is slowing, but when the former pace of growth is factored in, it is easy to believe China has some wiggle room as it prepares to enter 2013.
In other words, I see my portfolio as still under attack, still gaining and then losing and then gaining again, but come January 2014 I expect to be comfortably into the black and that, in these trying times, is good enough for me.
Just "Don't panic."