BUZ LIVINGSTON: As the debt ceiling drama churns

Published: Thursday, October 17, 2013 at 16:24 PM.

In 2008 following Lehman Brothers’ collapse the financial markets experienced a severe liquidity crisis.  If Nov. 1 arrived with no deal, the Federal Reserve would have done what it did in 2008 and flooded the markets with liquidity. Thank goodness we are not on the gold standard where we would not have the ability to handle chaotic markets. 

What to do going forward? Your short term needs should be in cash or money market funds. Individuals should not make any changes to their portfolio nor take precipitous actions.

Equity markets will be volatile in the short term, but long term prospects remain strong. Remember everyone who dumped stocks in late 2008 and early 2009 lost their fanny.

  Nobel Prize in Economics

Noted windsurfer Dr. Gene Fama can add Noble Laureate to his collection. Fama’s work reinforces market timing’s folly and exposes it as marketing hokum. Neither you, nor anyone managing your money, can time the market. 

Buz Livingston, CFP has a Blue Mountain Beach-based hourly financial planning and investment management firm. He works with clients around the country whose portfolios range from $5,000 to $7 million.  For more information, visit www.livingstonfinancial.net.

 



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