The news is depressing. Everything is down; housing is down, the stock market is down, sales are down everywhere and people are feeling the pinch. Even the things that are up are not good. The one thing that is up significantly is unemployment and who wants that.
But take a look around. We were in the same situaion back in the early eighties. Back then unemployment was even higher than it is now and interest rates were in the high teens. At the time no one could see the light at the end of the tunnel. Who would have guessed that the recession of the early eighties would lead to the largest expansion in the history of housing and the stock market ever. Is it possible to for us to look past the immediate challenges to the growth that is certainly on its way?
Recessions are largely a matter of impressions. If enough people are worried about a recession, guess what? We get a recession. So what will get us out of this recession? We will get out when enough people decide to ignore the recession and press ahead with a positive outlook on the economy.
Now let me explain that I understand that there are underlying economic forces that have a profound effect on recessions. As a matter of fact, some shrinkage of the money supply is not only inevitable, but also beneficial. However, what makes them hurt the most and last the longest is the negative attitudes of people with purchasing power. And in today’s market, those people are largely baby boomers.
Many boomers are now entering their retirement years. That means they have, in most cases, the most in assets they will ever have. It also means the recession has them scared to death that they won’t have enough to last them through their retirement. This is, of course, a perfectly reasonable concern that is having a profound effect on all sorts of markets. What is ironic is the fact that there are some fabulous deals out there with the courage to move now before everyone else jumps on board.
Making a move now may require a great deal of courage, but the rewards could be significant. Plus, you would be doing your part to rebuild our struggling economy.
