Facebook Twitter Linked In Back to FMCB

Investment Center

Articles: Five Reasons to Revisit Equities

After the recent stockmarket decline, many investors chose to scale back their investments drastically or sit on the sidelines completely. However, going forward, there are several valid reasons why you might renew your interest in a broad range of equities.

The stock market doesn’t play favorites.

It’s not like there’s a “secret club” for winners, and losers can’t get in because they don’t know the password. The main elements for being successful - such as doing your homework and understanding the fundamentals - are available to everyone. Although institutional investors and some well-heeled individuals may gain a leg up due to greater resources, anyone else can obtain the information needed to be successful. Just remember to balance the chance for reward against the inherent risks.

The stock market moves in cycles.

Historically, it has rebounded following a recession or a bear market. The recovery may be graded or swift or marked by volatility. Immediately after a steep decline, aggressive investors can take advantage of “bargains” in the market. As more investors return, prices will begin to increase. Typically, the market will rise until a correction occurs, usually as a result of diminished investor confidence.

The stock market is regulated.

One of the offshoots of the decline spanning 2008 and 2009 is that rules for the financial services profession have been tightened, both in terms of the financial products offered and the transparency afforded to investors. Similarly, regulators are seeking to protect investors from Ponzi schemes like the one perpetrated by Bernard Madoff.

The current environment should enable investors to make informed decisions based on the complete picture.

The stock market offers potential for both current income and long-term growth.

Although the recent downturn has affected some dividend payouts, the situation is expected to change as the recession abates. While some companies will slowly recover, others could experience more rapid growth, providing greater benefits. Because investors are likely to be more wary of risk, companies with a good dividend-paying history will likely become more attractive to investors over the long haul. Dividends are not guaranteed and must be authorized by the company’s board of directors.

The stock market provides flexibility.

You can buy, sell, or hold stocks, in any combination, with relative ease. Although this is not unique among the various types of investments, this gives equities versatility. Depending on your situation, you may trade actively or generally hold onto stocks for the long term, the choice is yours.

Keep your eyes wide open to the possibilities - both positive and negative. If you decide to return to equity investments, a professional adviser can help you find your comfort level.


This newsletter/advertisement is produced for our clients, friends and associates through an arrangement with WPI Communications, Inc. for the representatives’ use. Although the editorial content is professionally researched, written and edited, neither our firm nor any of its agents, representatives or associates make any representations regarding the accuracy of the content or its applicability to your situation. The information in this communication is not intended as tax or legal advice. In accordance with IRS Circular 230, the information provided herein may not be relied on for purposes of avoiding any federal tax penalties. Any tax advice contained in the body of this material was not intended or written to be used, and cannot be used, by the recipient for the purpose of 1) avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, or 2) promoting, marketing or recommending to another party any transaction or matter addressed herein. You are encouraged to seek tax or legal advice from an independent advisor.

 

Back to Top

Bank Among Friends
First Minnetonka City Bank
First Minnetonka Investment Center is a registered branch of LaSalle St. Securities, LLC.
Securities are offered through LaSalle St. Securities, LLC., Advisory Services offered through LaSalle St. Investment Advisors, LLC.
 LaSalle St. Investment Advisors, LLC is affiliated with LaSalle St. Securities, LLC.- a registered broker/dealer.
Tam Hubert, CFP® and Kristi Remus are registered representatives of LaSalle St. Securities, LLC.
940 N Industrial Dr., Elmhurst, IL 60126-1131. Member FINRA / SIPC. Not a deposit. Not FDIC insured.
Not insured by any Federal Government agency. Not guaranteed by the bank. May lose value.
Disclaimer
No
Yes

The Fair Housing Act prohibits discrimination in housing because of:

Mission

Enforce the Fair Housing Act and other civil rights laws to ensure the right of equal housing opportunity and free and fair housing choice without discrimination based on race, color, religion, sex, national origin, disability or family composition.

Major Goals

1. Reduce discrimination in housing by doubling the Title VIII case load by the end of 2000 through aggressive enforcement of civil rights and fair housing laws;

2. Promote geographic mobility for low-income and minority households;

3. Integrate fair housing plans into HUD's Consolidated Plans;

4. Further fair housing in other relevant programs of the Federal government; and

5. Promote substantial equivalency among state, local and community organizations involved in providing housing.