Guzzo the Contrarian

Am I the only one embracing this market meltdown?

As we approach a bottom in this bear market my views will be changing. Instead of predicting doom, gloom, and despair as I had in the past, my financial views will be changing to the bullish point of view. Almost everything that I’ve forecast for the past 2-3 years has come to pass, and now that we’re here, what good is beating a dead horse?

I’m sure that you’ve all heard the old financial proverb, “you make money when you buy, not when you sell”. THIS IS THE TIME when investors make their riches. I’m seeing golden opportunities everywhere and I’m excited about all the potential bargain prices.

On a personal finance note, this bear market cycle highlights the reasons why I’m always encouraging people to live frugally, pay off their debt, and save as much as possible. Consider these two things:

1. Having no debt and a 6-12 month emergency savings fund will allow you to continue your frugal lifestyle, even if you wind up being downsized. You won’t have to panic at inopportune moments and make undesirable decisions that could potentially worsen your financial position.
2. Your cash savings will now allow you the opportunity to capitalize on the many investment bargains to be had, eventually creating even more wealth for the next economic downturn.

So, as you can read, a little financial planning goes a long way. We financial bloggers don’t write about this stuff just to blow smoke up peoples’ butts. These important “old school” concepts actually that work for those whom embrace them.

Having followed the financial guidelines that I’ve frequently written about on Guzzo the Contrarian, I’m now in a position to capitalize on available opportunities. I live way below my means, have no debt, and continue to save approximately 90% of my earnings. I’ve max-out contributions to my retirement savings plans, continued to build up cash in my brokerage account, and now can pick and choose amongst the many market bargains.

This market meltdown motivates me to contribute even more cash into my brokerage account, and I’ll be conducting more research into individual investments and taking up more short-term and long-term stock positions as it continues. I’ve got my eye on a few opportunities currently and I’ll be presenting my views, opinions and positions as I make them. I hope you all have the opportunity to do the same.