I first subscribed to The Wall Street Journal in the late 70's on a cut-rate student subscription. That was during the Carter administration and some things were going up, up, up. Problem was, those things were interest rates, inflation, energy prices, and gold. It was not a good time for investors, as runaway inflation kept investors justifiably nervous. Back then the US Federal Reserve would have Thursday afternoon announcements of M1 and M2 - measurements of the money supply - and investors held their breath all day Thursday waiting on those numbers, and the subsequent opinion of Henry Kaufman on what the numbers meant. Dr. Kaufman is still alive and well but his prominence in financial circles was long ago eclipsed by other boldface names. Even his then-popular nickname - Dr. Doom - has since been adopted by a contemporary Dr. Doom. I suppose every cycle has its doomsayer.
Where am I going with this? Simple. Today The New York Times reports that investors are nervously awaiting today's congressional testimony from Fed Chairman Ben Bernanke. Holding their breath just like they did decades ago for Henry Kaufman. My point is this: whether Mr. Bernanke is yet another Dr. Doom (or possibly Dr. Pangloss) means little in the long run. Exhale, ignore the noise, stick to fundamentals, and invest to fit your goals.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).