Is your investment advisor doing his own thinking or just listening to the news. You better hope that your investment advisor is doing more than just listening, because lately running with the crowd might not be such a good idea. I was actually laughing out loud yesterday at a report about how investors are questioning a supposed recovery in the financial sector.   I think this laughter was probably shared by any and all players in the financial sector that still have some sanity in reserve.  Though the credit crisis is supposed to be a year old we haven’t gotten a chance to first drink up all the numbers, and then get the credit hangover that will eventually lead us to the hot cappuccino recovery.  Just look at Wachovia and Wamu had to say yesterday.  Like I discussed a few days back in ” When the Crisis Ends the Bear Market Begins” you need to go through the steps i.e. crisis, bear market, and then recovery in that order.  We also heard Treasury Secretary Paulson say that we will have a recovery in months and not years.  However, Fannie and Freddie aren’t the entire story and there is still a huge lack of liquidity in the market.  The key to any lasting recovery will need to involve the a new structure that provides the liquidity to get a larger majority of people into homes (keep in mind that I don’t believe everyone should own a home as this is something earned and is not an entitlement), and business the funds they need to grow.  Without this we are just hoping and anytime you find yourself hoping in the investment world, you’ve most likely already lost.  

 Copyright Regent Global Funds 2008