Today's Hot Topic

Are the stock markets recovering too quick too soon?

I'm far from an economist so I'm not going to make a call here however I do have an opinion that I feel makes good sense.

 

Typical of every market correction we experience there is often a sentiment that the sky is falling.  The news media love to promote all the doom and gloom.  Ever heard anyone say 'this time it is different'?  Yes I'll agree the reason we go through a market correction and/or recession is due to usually something new.  Tech bubble, 9/11, Savings & Loan crisis in early 1990's and then the financial bubble here in late 2008. 

Panic often sets in and those who stated they were long term investors suddenly sell due to losses they see on paper and inevitably get burned and miss the market recovery.  Ever heard someone say 'I'll get back in the market when it turns around'?  I know of no guru's out there who can accurately predict what will happen tomorrow.

 

I'm not a market timer because I really can't tell you what will happen tomorrow.  As an optomist about the future of our economy and world, I know the markets will trend upward over time, businesses will make money and smart investors owning those businesses will also make money.

 
Why I say this is because I believe in you, your family, your neighbors and the fact that  you will progress forward.   The key word is progress.  We as a society have continued to always grow and move forward just look at things like the internet, hybrid vehicles, technology such as the IPod and cell phones.  Many of these things are new in the last 20 years!

Due to progress like this and the fact we continue to work and care about our lifestyle, family, community, church etc we as a society will push our economy forward and grow.  What this means is good companies will create and produce products we want.  They will make profits and pay their employees.  We will take that money and buy things so we can grow and prosper.

 

It is when we all give up and hunker down in our home with a gun and a supply of non perishable foods and water is when I'll become worried about where we are headed.  But by then it will probably be too late.