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February 6, 2008 at 02:49 PM

Tough Day(s) on the Market

Money

Unless you've been living under a rock, the economy is teetering on the verge of recession. Its all but been declared, saved for a few analysts puzzing over numbers like an uptick in manufacturing orders and steady inflation figures. However, flat productivity, weak consumer confidence, sub-prime lending woes and a shrinking service sector (which is only 90% of the GDP), all point to a contraction.

The recent dramatic cuts in interest rates (with more likely on the way) have provided some cushion for shaky investors and for homeowners, but its hard to say where we're headed next. Its no surprise that record Federal deficits to cover GWB's unqualified debacle in Iraq aren't helping, and the weak dollar (lower than Canada? Are you kidding me?) is just, well, insulting - but, good for exports! Let's go Ford!

That being said, this is a buyers' market. There are some attractively priced stocks out there, and if you're buying in a down market there's lots of upside. Historically some of the richest stock returns have been enjoyed during period of recession, so I'm keeping the long term view. I'm buying in today, and I'm in for the long haul. Besides, selling now in a panicked market only guarantees turning paper losses into real ones.

If you'll excuse me, I've got some consumer spending to do.




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