Tuesday 2-26-08

Good morning.  PLEASE READ THE ENTIRE BLOG TODAY---IT IS VERY IMPORTANT!  First up, this brief thought  Wouldnt you know.  I spend the entire blog yesterday lamenting the horrors of a power outage and not being able to see the Oscars and guess what  There must have been a lot of outages  The preliminary ratings on the broadcast found that Sundays telecast was the lowest viewer wise in history!  No kidding.  I didnt really care for what I did see And the movies nominated---what a drag.  I just dont get them.  See, I am getting older.  Maybe its just me---and millions of others who werent captivated by the broadcast.  My opinion.

Todays LA Times a story on page 3 about the woes of existing home prices sliding --- then on page 4 we learn the Dow climbed 189 points partly because the sale of existing homes fell less than expected nation wide.  I guess they pretty much got that covered  Now the IMPORTANT story

An interview by Lee Kuan Yew.

Lee Kuan Yew led Singapore to independence and served as its first prime minister. He was regularly re-elected from 1959 until he stepped down in 1990. Under his leadership, Singapore became a wealthy financial - industrial city state despite a lack of natural resources.  He left office in 1990 but has remained as Singapore's Minister Mentor.

Last week UPI interviewed him.  Here is what Lee Kuan Yew had to say about the press when asked why democracies don't produce great statesmen anymore.

You now have, and I don't know how long this phase will last, mass media domination, owned by a group of media barons who want constant change for their balance sheets.

This is the long and short of a very important global investing 
fundamental. The media want you worried. They want you tuned to the TV or your nose glued to the daily rag.

During the upcoming months you are likely to see a lot of headlines about recessions, depressions, economic horror and financial collapse.

Do not buy into this!

Instead remember the following.

#1 You can never predict markets in the short term because they are controlled by human emotions.  Markets will always bounce up and down. Times of high market performance will always be followed by periods of low growth.

#2 You can always count on markets in the long run because they are controlled by universal laws of supply and demand.

#3 The world has a growing population learning how to produce more and being paid more to do so.  In other words there is growing supply and demand.

#4 A continual flow of new technology continues to support a growing global economy that enhances wealth for all.

#5 Short term downturns (such as we are seeing now) create good value.

#6 The press profits from making downturns look worse than they are.

#7 Downturns are natural and good...part of nature's rhythm.  When downturns are magnified by the press, greater opportunity is created for investors who ignore daily economic noise, short term fluctuations and seek good value instead.

My guess (one I am backing with my investments) is that we are heading into the best time to invest since 1982 when the Dow had slid sideways for 14 years.

Everyone felt a disaster was coming.

The richest growth in the history of mankind came instead.

Thanks for staying with us on the blog for this extended entry.  Feel free to share it with your friends.  Best, www.patandmelody.com