Joe Brittingham, CFP, Financial Advisor
Joe Brittingham is a Certified Financial Planner and a Financial Advisor with Edward Jones Investments located in the OHS/Long's Shopping Center in Pismo Beach, California. Mr. Brittingham began his financial career in 1996. Mr. Brittingham mentioned that we have witnessed many cycles in the financial market and that the market survives on two main factors: fear and greed. There have been two major cycles: the tech bubble which we all remember and the recent real estate turn-of-events. Oil and gas have hit some peaks as have government securities.
The Federal Reserve steps in when the market soars and discounts rates on short-term money and then tightens the economy as the market corrects itself. Naturally the opposite holds true when things turn around. Since 2004 we have had four and a half years of sustained growth without a 10% correction. The second phase discussed had to do with short-selling; the market started to sell off and the Feds dropped the interest rate by 1 ½ of a point. It is now '0' to '1/4' of a point. The difficult time was the end of last year. The Reserve is prepared to step in with $500 billion towards securities to keep the housing market from falling too much and is prepared to add additional funds. There are two kinds of investments: individual and institutional money. Mr. Brittingham spoke to the oil cycle and that last year was not a sustainable oil cycle. There are always cycles and he hopes the commercial real estate cycle will rebound and go forward in the next few months. The caution: opening the markets could be a 'push' and that could lead to inflation. As for reliable investments: for 1999 to 2008 we had the worst ten years in history for the S & P 500. We have had 32 bear markets in the last 108 years. Equities remain the most profitable. Some regulations have changed, hedge funds have their own regulations, and we should be seeing a positive growth factor soon as long as we stay clear of the 'herd mentality.' This is a good time to own municipal bonds; they are a comfort zone and are tax-free. Mr. Brittingham conducts financial workshops at no fee, in his office in Pismo Beach as well as hosting financial dinner presentations at the Dolphin Bay Resort.
Joe Brittingham, CFP, Financial Advisor, Edward Jones Investments, 835-B Oak Park Blvd., Pismo Beach, CA - 93449; 805-473-9200.