CNBC, Jim Cramer, pundits left and right today are talking about the DOW going up, how things are looking good now, and NOW is the time to get back into the market. NOW is the time to buy big homes, new cars, stock in bankrupt companies, etc. I guess…is that what they’re actually saying? I mean, seriously?
Is anyone not looking at the fact that we lost well over 600,000 jobs last month? Is anyone not taking into account that the only money that’s moving right now is the money we PRINTED? I’m no economist, but until an economist or someone who knows what they’re talking about can explain to me why spending money we don’t have leads to prosperity, then I’m going to keep on believing that wealth comes from actual work…not buying stuff. I’m going to keep on working, living beneath my means, saving and investing in my own business and not buying stuff just because Uncle Sam tells me it’s my duty to do so.
Wealth comes from within…it does NOT help your neighbor for you to go out and buy a car you can’t afford. Just sayin…
BTW, I don’t write about this economic stuff thinking that I have all the answers. But so far, no one has convinced me that we’re going the right direction. I honestly think we’re headed for a really rough time ahead. I think the world owes us a lashing.
It’s really, really important to understand your market. You cannot profit and prosper if you don’t even understand the environment you’re in. If you believe all the guys telling you that a recovery is just around the corner, you will be compelled to take action on that. Again, I don’t claim to have all the answers, but I urge us all to think critically about this kind of thing. If you think the market is coming back, maybe it’s a great time to buy some Citi…right? Careful, now…I’m not buying into that noise. That’s my two cents. I don’t think the downturn is over by a long shot. It doesn’t mean your business cannot prosper…even explode in this economy. But plan accordingly.
Do you think the downturn is over?