Comments on: Recession Prediction http://www.consumerismcommentary.com/2006/01/09/recession-prediction/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Flexo http://www.consumerismcommentary.com/2006/01/09/recession-prediction/#comment-1521 Flexo Tue, 10 Jan 2006 08:36:22 +0000 http://wp.consumerismcommentary.com/?p=755#comment-1521 Yeah, I get the same feeling. Yeah, I get the same feeling.

]]> By: Darren R. Sussman http://www.consumerismcommentary.com/2006/01/09/recession-prediction/#comment-1520 Darren R. Sussman Tue, 10 Jan 2006 08:27:24 +0000 http://wp.consumerismcommentary.com/?p=755#comment-1520 Is it just me, or is everything getting really expensive lately? I mean, everything just seems to cost more, whether it's gasoline or groceries or whatever....I just feel like I'm paying more for everything than I ever used to before.... Is it just me, or is everything getting really expensive lately? I mean, everything just seems to cost more, whether it’s gasoline or groceries or whatever….I just feel like I’m paying more for everything than I ever used to before….

]]> By: Flexo http://www.consumerismcommentary.com/2006/01/09/recession-prediction/#comment-1519 Flexo Mon, 09 Jan 2006 23:44:39 +0000 http://wp.consumerismcommentary.com/?p=755#comment-1519 If you're well-diversified, then you shouldn't be worried about it. Those who are not well-diversified -- for example, those who had all their money in tech stocks in 2000 and 2001 -- are the ones who should think about chaning their strategy, in my opinion. While what you say Dus10 is logically correct, recessions involve sentiment as well as real money. And the way people feel about the economy is just as important as the actual economy. In some cases bad news (not predictive bad news but actual bad news) affects the whole environment, not just one sector of the economy. If you’re well-diversified, then you shouldn’t be worried about it. Those who are not well-diversified — for example, those who had all their money in tech stocks in 2000 and 2001 — are the ones who should think about chaning their strategy, in my opinion.

While what you say Dus10 is logically correct, recessions involve sentiment as well as real money. And the way people feel about the economy is just as important as the actual economy. In some cases bad news (not predictive bad news but actual bad news) affects the whole environment, not just one sector of the economy.

]]> By: Dus10 http://www.consumerismcommentary.com/2006/01/09/recession-prediction/#comment-1518 Dus10 Mon, 09 Jan 2006 23:33:07 +0000 http://wp.consumerismcommentary.com/?p=755#comment-1518 I am not all that worried about it. But, I think this pessimism is harmful. When we are in a global marketplace, people tend to want to lump different markets together instead of analyzing them seperately. The U.S. is not really one big market, but several diverse markets. It is just like the real estate "bubble." There is no nationwide real estate bubble, period. There are certainly a couple of markets that are bubbles, but that does not speak for the entire country. We are a large country, in many senses, and you can look at various markets the senses. We have different geographical markets that are centered around various metropolitan areas... and the proximity to other metro areas creates larger macro markets. Then, you can look at markets based on industries. You can also look at markets from enthic and religious standpoints. The best stuff I have seen is when people make these kind of statements with blinders on, and then look at what they are missing. I am not all that worried about it. But, I think this pessimism is harmful. When we are in a global marketplace, people tend to want to lump different markets together instead of analyzing them seperately. The U.S. is not really one big market, but several diverse markets. It is just like the real estate “bubble.” There is no nationwide real estate bubble, period. There are certainly a couple of markets that are bubbles, but that does not speak for the entire country. We are a large country, in many senses, and you can look at various markets the senses. We have different geographical markets that are centered around various metropolitan areas… and the proximity to other metro areas creates larger macro markets. Then, you can look at markets based on industries. You can also look at markets from enthic and religious standpoints. The best stuff I have seen is when people make these kind of statements with blinders on, and then look at what they are missing.

]]> By: Flexo http://www.consumerismcommentary.com/2006/01/09/recession-prediction/#comment-1517 Flexo Mon, 09 Jan 2006 20:16:55 +0000 http://wp.consumerismcommentary.com/?p=755#comment-1517 That's a basic, sound general philosophy for any economic condition. That’s a basic, sound general philosophy for any economic condition.

]]> By: Bruce Kroeze http://www.consumerismcommentary.com/2006/01/09/recession-prediction/#comment-1516 Bruce Kroeze Mon, 09 Jan 2006 20:01:43 +0000 http://wp.consumerismcommentary.com/?p=755#comment-1516 I just wrote about this very topic on my blog. In a nutshell, I'm not getting too worked up about the possibility, since I think my financial strategy is equally or possibly even more valid in a recessionary environment. 1) Get out of debt 2) Build emergency fund 3) Invest wisely All three steps need to happen with or without a recession. <a href="http://fearlessmoney.com/2006/my-response-to-economic-pessimism.html" rel="nofollow">My Response to economic pessimism</a> I just wrote about this very topic on my blog. In a nutshell, I’m not getting too worked up about the possibility, since I think my financial strategy is equally or possibly even more valid in a recessionary environment.

1) Get out of debt
2) Build emergency fund
3) Invest wisely

All three steps need to happen with or without a recession.

My Response to economic pessimism

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