Recession Anxiety – Financially Frazzled and Physically Fractured by the Crash

We are now “officially” in a Recession says financial experts from our government and from Wall Street. Most of us have known for quite some time that our economy is sick and that there is a sense of desperation in the media, at work, and in our family’s conversations. What many of us do not realize is that this massive amount of financial and emotional insecurity is taking a huge toll on most of us. Levels of anxiety are raising dramatically with each new financial forecast and every “breaking story” from the media regarding the demise of our banking system, manufacturing sector, financial institutions, retirement plans, and employment opportunities. Are you feeling it, or are you still in denial?

Take this brief assessment. In the past 3 months, have you experienced any of these symptoms of financial anxiety? (Any of these symptoms can indicate that the stress from financial uncertainties may be impacting you in negative ways.)

Insecurity (or Fear) about your investments, career, or job
Insomnia (getting to sleep, waking up, having difficulty returning to sleep, or waking un-rested)
Anxiety and negative ruminations (being fixated on negative news and events)
Feeling a “lack of control” over money or work
Headaches-Neck aches-Backaches (and generally tight muscles)
Nervous Stomach- appetite changes (not hungry o craving food)
Fear or anger (even rage) closer to the surface
Higher Blood Pressure, rapid or irregular heart rate
Impatience – Rudeness
Loss of Focus – Accident Prone – Poor Decision Making
Increased Illness
Increased Substance abuse-drugs, medication, food
Increased cravings of Caffeine or Sugar (yes, even chocolate)
Living in the Past (the Good Old Days) or Fearing the Future (the unknown)
Fun and Happiness are Down – Quality of Life is poor
A Loss of Hope…

Perhaps you have experienced some “social isolation” or embarrassment about your financial situation. It is difficult to discuss this and you may be feeling alone or isolated. This can lead to depression. You feel that you have no where to turn and no one to talk to about your fears and situation. Your self-image may feel crushed. Low levels of anger and hostility may lurk just below the surface and your increased sensitivity may make you feel like you are about to “snap.” We often are feeling completely overwhelmed. We may be fearful of the “what ifs” and know that we may have challenges with supporting aging parents or our children in college.

We are experiencing the “Global Warming” Meltdown of our financial systems with potentially irreversible damage to our psyche as we experience the loss of trust in financial services and our employment/career plan.

By knowing how these financial challenges have affected you, and avoiding the survival mechanism of denial, you can begin to work to minimize, if not eliminate, the negative spiral down into financial anxiety. There are things that you can do to change the way that you are responding to the negative news. Though you may not be able to control all the difficult situations, you do not have to be an emotional victim to habituated fear responses.

Before we describe the positive alternatives that you can employ, let’s look briefly at the “Silver Lining” in this dark cloud of financial anxiety.

1. This recession has caused many of us to “SLOW DOWN” and pause to reflect on priorities in our lives.
2. We may be required to “Simplify” which is not always a bad thing.
3. We may have to find our Creativity and celebrate our productive efforts even in making (rather than buying” holiday gifts.
4. We are confronted and are affected by Empathy for others and this can bring out our generosity and connect us with other people in a positive, giving way.

To get back in control during these challenging times, we must invest time and energy in taking care of ourselves. Regular exercise/activity, eating well, regular stress management, and simplifying our expectations are all components of a self care plan that can assist us in gracefully surviving this difficult time. Though it takes time and energy to do these things, it will save you time and energy in the long term. There are Ten Timely Tips available for you at the “articles page” at the Stress Education Center’s website. If you wish to review our program for controlling panic and anxiety then read the article at the “articles page” of the website. I hope these articles are helpful to you.

The challenge we all must face in these uncertain financial times is whether we want to wallow in this financial anxiety or if we wish to take a more positive direction and break away from being an emotional victim to the negative financial news.

Please take good care of yourself. If you require any additional support please consider the information, products, and services available at the Stress Education Center website.

Privileged News and Your FAP Turbo – Real Trading Success Comes With FAP Turbo and Your Market News

For those new investors who want to get serious with this business, that means to become a real part of the Forex Trading industry, and to get a real gain from this real sector, you need to be watchful at all times. First thing you have to do is to gather up useful information about this financial game. All the latest information about the currency policy and the recent performance of the pairs should be ready at your hand at all times, you can pull off these news from online financial news URL, twitter of the trusted broker firms and advisors, and a good newspaper which centered around financial news, also the simultaneous data from online bank and FAP Turbo. If you lag far behind than the on-site news feeder, concerning the US and AUS dollars, or the industry of Yen, or to say if you still do not understand what those news mean, you are doomed to be the next loser, it will be just a matter of time.

Did you know that nearly all people who join the industry at first beginning to feel the pain of losing their money in the very first step of their journey, and many of them quit right away since they were burnt by the candle flame. There are many who come to the Forex trading industry with unrealistic expectation, they suppose that the scheme can make the smart people rich overnight, especially with the help of FAP Turbo or Forex MegaDroid. But they do not know that it does take a few hours per day of study, some months to years to get smart, and a robot would not make an ignorant, lazy person rich. It is true that some people make a lot of profit, but they are either extremely hardworking or have already had a career that is very related to Forex Trading itself. Please do not forget the fact that these good profits also come in a respectable length of time and greatly depends on the big fluctuation of the market. So it is extremely important for traders to have whatever access to a certain extent of privileged headlines which can be translated into profit.

Income Investing: News, Mis-Information, and Opportunities

Whoa! Stop! Hang on a minute. There is absolutely nothing unusual going on in the income securities markets. There is nothing to be particularly concerned about or afraid of. Relax, take a few deep breaths, and read on.

Falling income security prices are all the buzz in the financial media these days, but why does this translate into such fear and confusion? I saw a news report the other day that encouraged investors to abandon their income ship and sail away on a stock market steamer that has been cruising steadily higher for twenty months — the IGVSI equaled its September 2007 high on December 8th.

And lest we forget, the over-riding purpose of investing in income securities is, after all, the generation of income. That’s income, Alice, not growth in market value. Just income.

Income securities, as measured by an index of high quality closed end funds (CEFs), remain roughly 50% above where they were at the bottom of the financial crisis and, more importantly, precisely within their normal price range of the past ten years. The most conservative CEFs are yielding from 6% tax-free to 8% taxable.

There are at least eight reasonable explanations for recent price weakness — there are at least eight excellent reasons why investors should be viewing this weakness as a buying opportunity. Clearly, the financial press has not attended any of my seminars on income investing. Lower prices and higher yields are good news for income investors!

One: Income security prices vary inversely with interest rate expectations (IRE) — eighth grade finance. After nearly two years of historical (hysterical) lows, the world expects interest rates to rise.

Two: Rising IRE, regardless of its impact on the price of fixed income securities, has absolutely no impact whatsoever on the income generated by existing securities. In fact, in CEFs, it will eventually lead to higher payout levels when managers have access to higher yielding instruments.

Three: The surging stock market has outsmarted most mutual fund managers, and rather than look stupid by holding income securities, they are taking losses in that area and “window dressing” their portfolios with equities that MCIM (Market Cycle Investment Management) investors are taking profits on. Inexperienced investors too, and too often, move from income to equity at precisely the wrong time.

Four: Rumors about the weakness of individual state treasuries may lead to some downgrading of their bond offerings, and this certainly has added some pressure to municipal bond pricing — but there hasn’t been a significant Municipal Bond default since the WHOOPS fiasco of the early 1980s.

CEFs contain hundreds of different issues, and defaults are not likely to occur when so many other fiscal alternatives are available. Perhaps the state employee unions will be forced to weaken their stranglehold on private sector worker pocketbooks.

Five: As any MCIM practitioner would explain, income CEFs have been a bountiful landscape for profit taking as they rebounded from the price “haircut” of the financial crisis. By adding to positions during the 24-month decline, profits were quick to appear as prices rose to normal levels very quickly — profit taking has been replaced by other investors’ irrational loss taking, as CEF income continues unabated.

Think of it like a sale at Target, but with bargain prices still 50% above where they were less than two years ago!

Six: Recent speculation that Congress would raise income taxes led to increased demand for tax-free securities. Now, with that specter less likely, demand has lessened. As an aside, do you think they know (arguably) that every major tax cut in history has led to increased government revenues?

Concurrently, State and Municipal bodies have been taking advantage of a new Federal government taxpayer pocket-picking program by issuing, taxable “Build America” bonds. Although they are forced to pay investors a higher rate of interest, the Fed picks up a third of it.

This program reduced the supply of tax-free bonds, just when the potential tax increase was increasing demand. With a republican controlled house, it is less likely that this program will be continued, increasing the supply and reducing prices once again.

Seven: CEFs, and the securities they own, are much less liquid than equities. Consequently, when there are more sellers than buyers (for whatever reason), prices will fall more quickly — and the impact on income? Nadda.

Eight: During December and January each year, most CEF managements disburse their accumulated capital gains. This welcomed “bump-up” in income to investors is recorded in the market as a reduction in price as the cash is distributed to shareholders.

So now you know why closed-end income fund prices, particularly for tax-exempt issues, have weakened. I look at it as a double Holiday bonus (or “gelt”, for those of you who know). Whether it is profit taking by MCIM aficionados, or loss taking by window-dressers; whether it is irrational “priceaholism” or simple issues of supply and demand — history tells us what to do about it.

When prices rise, we take our profits, reinvest and increase our cash flow. When prices fall, we reinvest our unaffected (even increased) earnings, reducing cost basis while increasing yield on investment. Double your holiday pleasure with increased distributions and lower priced shares to choose from.

Have you ever had so much fun? Who says income investing is boring!