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Edelman Financial Services CEO Ric Edelman on why there are such great opportunities for investors right now in the markets.
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Turning to the markets now stocks struggling to stay in the Green today.
As Greek debt talks stalled in inflation here at home rose another quarter of a percent today.
The Dow was up about 45 points at the close quiet compared yesterday when it's sort -- 123 points.
This puts a doubt very close to the thirteen thousand benchmark that's considered a big deal in the markets.
It's a milestone not reached since may 20084.
Months before what the collapse of Lehman Brothers that's right.
-- -- the Dow fast approaching that mark my next guest says.
This psychological benchmark should not be ignored here to explain why have Ric -- CEO about.
Hey look -- you think this is the greatest buying opportunity.
Of -- generation and yet stocks have already gone up a fair bit how do you explain it.
Well that's because back in 2008 I was telling my radio audience that if the greatest buying opportunity of a lifetime.
Now -- -- get to merely a generation.
-- -- -- -- -- in your observation now I am I mean let's face -- when the Dow was only 6700.
In March 9 of our mind we seem prices doubled since then.
What we're not gonna see a doubling any time again soon but we do have a long way to run so we're very very excited about the opportunities with today's stock market.
This is psychological impact on on professionals.
How did what you know how they change the way they look at the world because we're closing in on what is really.
Yeah I mean it's an imaginary line really right I mean it doesn't mean something and it doesn't mean anything at all really.
-- your absolutely right it doesn't mean any bank but it feels like it does and it is purely psychological.
But our professional traders and money managers well there are human too although sometimes they act like they're not -- And they are subject to the same psychological.
Reactions that mean amateur investors are so it's reasonable to expect that there's going to be a lot of excitement in the media and on Wall Street when the Dow hits thirteen thousand.
So why are markets up that would -- what do you think's really going on out there.
The economy is fundamentally improving this is the thing nobody wants to talk about everybody.
Thinks that we're still in the doldrums like we were no wait and some -- -- hoping it because of political reasons the fact though is the economy is getting better not nearly as fast as we would like not as strongly as we would like but it is.
Definitely much better corporate profits are excellent and even improving.
And that's why prices are rising.
Rick I was talking to some really wealthy folks signed now and it's interesting to me that even people have a lot of money to put to work.
They say they don't like stocks they don't trust stocks they're not getting back into stocks what do you say to people like back.
They're going to regret their decision on these are people who -- market timing -- and their attitude is strictly based on -- motion.
They're still shell shocked -- what happened over the last four years and they're gonna miss out on this opportunity look -- two choices.
You're either going to invest today or you're going to wish you did.
I love that optimism is VA VA just catches and he jumped right on the screen -- it looks good career advice for investors you say don't -- cocky what do you mean by that yet.
Well it is an exciting period of time we think prices are low road of where the going to be over the next several years but.
Let's not get cocky let's not recognize of -- forget the fact that the stock markets volatile.
We know what big losses can be like so diversified don't put all of your money into stocks even though we're feeling very good about it.
Keep -- diversified portfolio across all the asset classes on a global basis and that way you'll protect yourself in case somehow some way we might not be right.
Police say remain diversified I got to tell you that's -- -- advice my friend I start talking about diversification the people.
I think there lashes fluttered and then close.
You're absolutely right because diversification is boring and that's the way investments are supposed to -- you're not supposed to be excited about your investments you're shouldn't be looking to them for entertainment.
You should be you looking to them to secure your retirement.
Boring is good when it comes to invest boring is good -- so.
If you're gonna buy one thing today what would -- It would be a highly diversified stock fund or exchange traded fund -- say highly diversified something that -- thousands of securities.
Rather than making a bet on which stock is going to be hot I don't care about -- I don't care about apple.
I don't wanna bet my financial future on being right so -- big broad globally diversified stock fund I also think the important message to is.
He can't just do it today.
You can got to do it every day so that you dollar cost average -- costs over time and you're not buying it highs in cellulose.
See that's why you're so good at this Jerry your absolutely right down not only -- my advice of investing today but follow your advice and invest tomorrow and the day after that the day after that the day after that that's how well it's really created.
Alright Rick come back tell -- how you do with this imaginary portfolio we've created tonight thank --
