Wilson Wealth Monthly - November 2008 Page 1 of 5
Dear Maurice, Article Links
Let me start by welcoming our newest clients Nasheika, Obama, The Election, & Wealth
Patricia, Steve, Theresa, Alondra, and Terrance to the Wilson Real Estate not all Doom and Gloom
Wealth family. A lot has happened since our last monthly During Bear Markets Search for Value
newsletter. First things first I have to inform everyone that Wealth Resolutions
we will have to discontinue the Client Spotlight feature due
Wealthy Eating visits Dr. Oz's Site
to state regulations. Turns out this counts as a testimonial
and we are not allowed to use them in our communications.
In the News!
On a higher note I was recently featured in a local newspaper,
the Charlotte Post. For more info please visit the "News &
Events" page on the company's website.
Website is Back Online
Speacking of websites, the company website is back online
after going through some changes. I invite you to please visit
the site and send me feedback (positive or constructive) on
how I can improve the experience.
Obama, the Election, and Wealth Distribution
Now that the presidency has been decided I feel free to comment on
one issue of this election that I thought was mishandled due to
the ubiquitous hyperbole that comes with politics. The issue of wealth
distribution, or more appropriately the issue of wealth re-distribution,
piqued my interest due to the fact that few politicians truly
understand the stock market.
For if politicians understood the stock market they would know that the greatest distributor
of wealth in the world is--the stock market--not taxes. Yes taxes can and have taken money
from one income bracket and filled government coiffeurs, but it is not immediately turned
over to another income bracket. The government is not remotely this efficient (remember
how long it took to get your stimulus check?).
The Stock Market is the Greatest Distributor of Wealth
Periodically, yet consistently, throughout history the stock market forces the "haves" to sell
their assets to the "have nots". For example, since 2003 many well to do investors hoarded
high flying shares of Bank of America, Apple, Google, and so forth. As the economy
deteriorated the owners of these shares wanted to protect their gains and therefore sold
these assets at a discount to their true value.
Wilson Wealth Monthly - November 2008 Page 2 of 5
As a result people who couldn't afford Bank of America at $43/share in November 2007 may
find it especially attractive--and affordable--at $20/share this November. This is unheard of
in the broader economy. Even with a recession gripping the world you will not find BMWs,
Mercedes, or diamond rings discounted by 50% or more. Items may be reduced somewhat, but
not below their basic or intrinsic value--yet this is precisely what happens in the stock market
Gas, Bank of America, and $1,000 dollars
Thus every 10 years or so the stock market essentially gives away great assets at firehouse
prices. In fact it has occurred twice this decade. The beneficiary of these insane prices are
the have nots. Those who lacked either the money or timing to buy stocks in the last bull
market are now given a golden opportunity to buy more stocks per dollar than in years past.
For example 10 years ago $1,000 would fetch you 31 shares of Bank of America, on November
7, 2008 that same $1,000 gets you roughly 50 shares. By comparison $1,000 equaled 1000
gallons of gas in 1998 vs. 333 gallons today.
Where will you put your money?
Please keep in mind that this newsletter is meant to give a broad over view of our current
investment strategy, for more information about your account please call me immediately,
we have a 24/7 phone policy for your convenience.
Real Estate: It's not all Doom and Gloom
Contrary to what you believe people are still buying homes, hear what Charlotte, NC realtor
Meeka Clay has to say.....
What do you do? I am a Charlotte Realtor® focused on maximizing every transaction for my
clients and educating consumers on affordable housing. I am focused on educating all
consumers seeking Grant Programs and Special Financing options that make housing
affordable. We host a home buyer seminar twice a month to share this knowledge. I work
hard to provide value added services to my clients before, during, and after every real estate
transaction. Finally, I am very interested in concentrating on affordable products and
financing for people who desire to be homeowners.
Does your legal background help? Yes, being a trained and licensed attorney allows me to
assist with both the negotiating and contracting process.
What is your opinion of the current environment? Charlotte is a GREAT real estate market.
The current market has created great opportunities for buyers. Slowdowns are forcing
builders to give deals and many grant programs are offered now.
What type of programs? NACA-Neighborhood Assistance Corp of America, NC Housing
Finance, Mecklenburg County Housing Partnership, and United Family Services
Do you work with Sellers? Yes I do, in fact I advertise that Sellers are willing to assist Buyers
with through participation with Grant Programs and Non-profit programs.
Is this a good time to be a luxury home buyer? Yes. Excellent opportunities are present,
builders are listening and providing more incentives. More square footage for the money.
More upgrades and customization available. Builders are also offering perks such as golf
memberships, and dining club memberships
Why did you come into this profession when the industry was cooling off? I am a licensed
practicing attorney, but I sell real estate because I love it! Coming in on the downside
allowed me to focus on the fundamentals of this business which I believe start with long term
Wilson Wealth Monthly - November 2008 Page 3 of 5
How do you execute long term customer care? I provide house warming or going away
parties, online coupons for home improvement projects, and home improvement newsletters.
I send out the HUD statement at tax time. I provide my clients with after-care services, such
as articles about how you can pay your house off in 10 years for free, and contacts with
financial vendors. I also host a website that leverages my relationship with other service
providers who share my vision for customer service.
How may people reach you? M.J.Clay, Esq, Broker/ Realtor, Carod Properties, LLC
Ph: 704-277-6509 email@example.com www.mjclay.com
The views and opinions of Meeka Clay are not necessarily the views of Wilson Wealth
Management Group, please consult with your financial advisor or realtor before acting on
any information from this article. Not intended as advice.
The Classroom - During Bear Markets Search for Value
Whether we are mid way through a bear market or at the early stages of a multi-year
depression now is the time to start looking for value in the stock market. By now you may
have heard the term "value stocks" or "growth stocks". Ironically and confusingly you'll find
some stocks listed as both growth and value, this is due to Wall Street's moving target
definition of value. I have a more concrete definition: Value stocks are companies with
strong long term fundamentals that have been forgotten in the face of transitory short term
Now lets apply this definition to the real economy. Banks, real estate, and energy are at the
forefront of a short term event--the 2008 global recession. Be that as it may, it goes without
saying that the banking industry must succeed if we are to have an economic recovery. With
a great degree of certainty we know that in the future our kids will want homes and that their
kids will place an increasing demand on finite energy sources.
So what does this mean? The poster children for what ails the 2008 economy today are the
value stocks of tomorrow. So how do you capture this value without getting burned? I believe
exchange traded funds (ETFs) are the way to go. If you remember my plea from last month's
"The Classroom" I urged you to "focus on groups" not stocks. By investing in many companies
across a sector or industry you get exposure to potentially higher gains without the dangers of
single stock risk.
Educational purposes only please consult with Wilson Wealth Management before
implementing any investment strategy based on the information presented.
This month we will do double time and complete resolutions #7 & #8.
#7: Create a Home Information Management System
Quick where is your will? The IRS is coming to audit you this year where are your last seven
tax returns? These are a few of the documents you need to have stored in your home
information management system. This isn't nearly as difficult as it may sound. Go to Staples
or Office Max and buy a portable file cabinet on your way out pick up the legal sized folders
and labeling materials you'll need to file your documents. When you get home pull out seven
folders. Label the folders as follows: Legal, Taxes, Credit, Warranties, Auto, Insurance, and
Investments. In the Legal folder place your will, power of attorney, and other legal
documents. Place similar information in the proper folders as needed. Now you have
information at your fingertips, more importantly this info will help a surviving spouse or child
handle the difficult transition that may occur when you pass.
Wilson Wealth Monthly - November 2008 Page 4 of 5
#8: Create an Emergency Package
An emergency package goes hand in hand with your information management system. In fact
your emergency package is merely a digital back-up of all your pertinent information held in a
fire proof container. This back up should be held on a DVD or multiple CDs. This will allow
you to quickly get information out of your home in the event of hurricane, flood, or fire.
Wealthy Eating - Dr. Oz's Website
If you've been with me since January then you know we are trying to
eat healthy to reduce medical costs which can deplete our wealth--
especially in advanced age.
In a search for more information on prior eating I decided to check
out Dr. Oz's website. Dr. Oz is one-half of the popular duo behind the book "You the Owner's
Manual" a easy to read book about how to care for your body. Many of you will also recognize
Dr. Oz from Oprah.
For more information on Dr. Oz's healthy eating tips visit his site:
1. "My List" is a combination of My Space, iTunes, and Amazon's listmania. I
simply couldn't have a list purely of music or books. What about the
interesting article on MSN or Kiplinger's? Or the video on You Tube?
1. Movie of the Month: Ken Burns' Mark Twain Special
2. Music of the Month: Flamenco Sketches by Miles Davis andTuesday Wonderland by
3. Episode/Show of the Month: CBS Sunday Morning you should DVR or TiVO this show
every weekend, it's a nice mix of pop culture, front page news, and "I didn't know that"
information...and it'll make you smarter at dinner parties.
Year end reviews will take place in the December-January time period. I will send out
individual notices in the upcoming weeks, please start checking your calendar now for
Private Wealth Advisor
Wilson Wealth Management Group, LLC
Wilson Wealth Management Group is a financial planning and investment management firm
created to provide direction, clarity, and understanding for those who want to build wealth.
Our status as an objective independently owned firm allows us to develop creative solutions
to meet the unique needs of our clients.
Wilson Wealth Monthly - November 2008 Page 5 of 5
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