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Market Watch 6-3-12

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By San Diego 6 News Editors

What a dramatic end of the week to end a dramatic month in the stock market with a dramatic beginning to June!

From the highs set in April, the S&P is down roughly 9.9%. Remember a similar situation occurred in 2010. What happened? It wasn't until the Fall that the market began to rebound.

So what now? France as a socialist government? Greece is set to vote in a few weeks if they will succeed from European Union. If this happens and they have little credit, how will this affect Germany which relies heavily on exports. Let's not forget Spain that is sitting on serious levels of non performing debt. Add the fact that the United States economy appears to be slowing, at least from last week's jobs number, showing a weaker than expected report with only 69,000 jobs being added to payrolls in the previous month.

But one has to wonder if Chicken Little is crying a little too loud too often. The United States seems to be fairly insulated from Europe exports only account for about 11% of our GDP, and our banking institutions seem to have limited Euro exposure and higher reserve requirement. Interest rates are low and with oil down almost thirty dollars a barrel, perhaps that will help consumers and corporations spend money elsewhere.

Have that budget meeting and know with absolute certainty, if you drilled into unnecessary expenses, figure ways to cut costs, talk to those you work with and negotiate hard fee reductions, family discounts, and look toward higher savings.

If you don't know your magic number for what return you seek on invested capital and don't know what you need to be worth at retirement, you better get on it. And ask, “What else?” Should you set up college savings for kids and grand-kids. Do you qualify for Roth IRA.

If personal finance were easy, everyone would be a pro. Although it isn't easy, it is doable. Make the second half of 2012 great. I'm Ken Stern and that is my Stern word.

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