How I Am Investing in Turbulent Times

It’s been an interesting couple of weeks. I spent the first week after the U.S. debt downgrade trading like crazy and living out my prediction that things are never as bad as they seem.

Ironically, the second week I escaped to Las Vegas with my wife for our first mommy and daddy get-away trip. Now I’m back in New York at the Kapitall offices doing two of my favorite things: trading for myself and answering Kapitallists’ mail.

As you might know, most of my personal satisfaction comes from working with Kapitall users but most of my income comes from my personal investing and trading.

Other than the recent East Coast earthquake, the three big financial events have been:

1. The U.S debt downgrade
2. The European government debt crisis
3. The announcement by the Federal Reserve that they are going to keep interest rates near zero for the next two years

WHAT AFFECTS YOU THE MOST: Zero interest rates

I was on Seattle Q13 Fox News last week saying that the price of everything is going up (stocks, houses, bonds, used cars etc.). It was this announcement that made me buy stocks in my buy-and- hold portfolio and go to 100% stock allocation. (I’m happy to share it with you via Kmail)

I explain more about the impact of near-zero interest rates in my tribute to bubbles:

You can see my shiny bald head on a local Fox News station explaining what I’m doing with my portfolio:


WHAT MATTERS THE MOST: The European government debt crisis and by association the European bank crisis (U.S. banks are actually in pretty good shape).

I wrote about the impending European meltdown back on August 4th.

WHAT MATTERS THE LEAST: The U.S. debt downgrade by the same guys who brought you AAA ratings on sub-prime mortgages.

Here I am again two-weeks ago on Q13 Seattle talking about how little the debt downgrade matters.



WHAT I’M BUYING: I like stable companies that make products you can’t live without. I created this list of high-yield stocks with solid products for my Dad’s IRA..
http://bit.ly/neuberttradingcrisis

I am not a robot. I love to respond to questions and comments and engage in two-way idea-sharing with Kapitallists. Add me as a contact in Kapitall so we can keep up.

DISCLAIMER:
David Neubert is a Co-Founder and shareholder of Kapitall, Inc., the sole owner of Kapitall Generation, LLC (“KapGen”), an SEC registered broker-dealer and FINRA member. Mr. Neubert is not an associated person of KapGen or any other broker-dealer and, other than his indirect relationship described above, he has no control or affiliation with KapGen.

I also have a shiney bald head.