Wealth Building Strategies Limited

Wealth Building Strategies Limited

Financial Planners, Insurance & Investment Advisers

THE ECONOMIC CLOCK

The economic clock demonstrates graphically how an economy moves through it's economic
cycle. The clock shows there is a time to buy certain types of investments and possibly a time
not to buy. Notice that I don't say 'sell', because one of the most important investment habits to
develop is a long-term investment horizon.

















OUR ESTIMATE OF THE ECONOMIC CLOCK TIME
January 2009	02:15 pm	January 2009	05:00 pm	January 2010	09:00 pm
February 2008	02:30 pm	February 2009	05:15 pm
March 2008	02:45 pm	March 2009	05:30 pm
April 2008	03:00 pm	April 2009	06:00 pm
May 2008	03:15 pm	May 2009	07:00 pm
June 2008	03:25 pm	June 2009	07:15 pm
July 2008	03:30 pm	July 2009	07:30 pm
August 2008	03:45 pm	August 2009	07:45 pm
September 2008	04:00 pm	September 2009	08:00 pm
October 2008	04:15 pm	October 2009	08:15 pm
November 2008	04:30 pm	November 2009	08:30 pm
December 2008	04:45 pm	December 2009	08:45 pm

Over 2008 and early 2009, the market value of the bonds and stocks that investors held in their portfolio's suffered a significant decline along with the general market. At the start of 2009 we expected the likely turbulence could continue beyond 2009 and well into 2010. However from March 2009 the share markets have recovered significant lost ground. We don't know how long the rally will last. We will be recommending our clients take some of the profits (sell) when the prices pass the previous high tide mark plus a reasonable return above inflation. We will then wait for the next market correction to consider the buying opportunities. Although this worries investors, such price declines present opportunities for investors who have funds available to increase their positions. Every investors mantra should be; “Price is what you pay; value is what you get.” Whether talking about groceries or stocks, every investor likes buying quality merchandise when it is marked down.