Ten year anniversary of 9/11 is upon us. Ten years back on 9/11, America and to some extent world changed forever! For first ever time, America understood real meaning of terrorism. Till that day, it was always something which happens in Kashmir or middle-east. While that day was unfortunate, what followed with two wars (one unnecessary one in Iraq) changed America. For many, it was lost decade (and still counting). I was just looking at S&P performance over these 10 years. It has gone up by meagre 3.5% in 10 years. There goes your buy and hold strategy which all pundits recommended. 10 year is a long time for someone to hold onto their investments and in return getting only 3.5% in capital appreciation.
As we enter into 2nd decade of post 9/11 America, what should policymakers and most importantly we as American citizens do ? First and most important thing - get out of Iraq and Afghanistan by ending both wars. That should save enough money to invest in domestic infrastructure and rebuilding America. American people have done it after end of 2nd world-war when they built suburbs and highway system. It is time to invest in rebuild America again and by doing that employ millions of people to reduce unemployment. That should instill enough confidence in people to get America moving again. But are policymakers wise enough to rise to the challenge of our times ?
Given the composition of Washington, it is unlikely to happen. President Obama would propose some ideas next week which Republican party who is in-charge of Congress would immediately shot down. Then there is debate of fiscal deficit and deadline for super committee recommendations. It would be politics as usual when we enter into 2nd decade of post 9/11. Unless people react strongly and teach those congressman a lesson to shape up or go back home in 2012 elections, nothing is going to change.
Till then, forget about long-term buy-n-hold strategy and be opportunistic by selling covered calls on your stock holdings. That would surely give you some regular income against your supposedly long-term stock holdings.
Finally I salute those brave people who lost their lives on 9/11 as well as in two wars which followed 9/11.
/Shyam
As we enter into 2nd decade of post 9/11 America, what should policymakers and most importantly we as American citizens do ? First and most important thing - get out of Iraq and Afghanistan by ending both wars. That should save enough money to invest in domestic infrastructure and rebuilding America. American people have done it after end of 2nd world-war when they built suburbs and highway system. It is time to invest in rebuild America again and by doing that employ millions of people to reduce unemployment. That should instill enough confidence in people to get America moving again. But are policymakers wise enough to rise to the challenge of our times ?
Given the composition of Washington, it is unlikely to happen. President Obama would propose some ideas next week which Republican party who is in-charge of Congress would immediately shot down. Then there is debate of fiscal deficit and deadline for super committee recommendations. It would be politics as usual when we enter into 2nd decade of post 9/11. Unless people react strongly and teach those congressman a lesson to shape up or go back home in 2012 elections, nothing is going to change.
Till then, forget about long-term buy-n-hold strategy and be opportunistic by selling covered calls on your stock holdings. That would surely give you some regular income against your supposedly long-term stock holdings.
Finally I salute those brave people who lost their lives on 9/11 as well as in two wars which followed 9/11.
/Shyam
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