When I started reading my RSS news last Tuesday (03 March 2009), I had to take out my wallet and count the money that I have, check my credit card balance over the phone, and my savings account online. I must admit, I panicked. Who would not? The headline reads:
“The Dow Jones industrial average plummeted below 7,000 at the opening bell and kept driving lower all day, finishing at 6,763 — a loss of nearly 300 points. Each of the 30 stocks in the index lost value for the day. “ (AP | read full story)My feelings are shared by many investors and stockbrokers, especially when AIG announced their $62B loss for 2008 4rth Quarter. I wonder if the bail-out package they receive will suffice to resuscitate their financial health.
As much as I disliked bad news, I cannot help but look into what is happening in the international money market. For me, bad news can be a good starting point for introspection, reality checking, and a basis for conceiving proactive solutions. The prognosis is bad. The recession is still wreaking havoc. But does this means that we stop living? Or stop making a living?
It is true that money, while essential, is not all there is.
Oh, crap! You know that I am just trying to appease myself there.
However, if we look things in a lighter perspective, we will begin to see that everything is but temporary and that this economy ( as one prominent economist argues) is bound to rebound (pun intended) whether we tinker on it or not. I agree because, we are all typically resilient in adversities. Nature taught us that.
The clichés "saving for the rainy days" and "enduring the winter of your life" are but examples of many things that we tend to overlook. We learned these from nature itself. The changes in the weather and natural catastrophes have taught us to prepare, and most of all survive. What we have not really learned is living in during the good times.
Good times make us complacent, and sometimes irresponsible. We tend to forget what we have been through and the bitter lessons learned.
I will continue reading the news, bad or good, regardless if my wallet is empty or is bulging with money because the news reminds me of things that I am NOT supposed to do with my finances when good times come.
What is our take?
Again, on my metaphor of the weather, allow me to quote Pietro Aretino:
"Let us love winter, for it is the spring of genius."With this in my mind, in the economic context means: let us value what this economic downturn brings, because it allows us to think of better ways of managing our personal finances.
under
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12 comments:
Now do u buy Citibank share when it drop below USD1?? If u do u will have make some $$$$!!!
BTW tq very much for dropping on my site! Have a very nice day!
I do not play the stock market and more than likely never will, but I do have friends that are fretting over what is transpiring at this present moment. I have one friend that has lost some $500,000 thus far. It's a good thing they are not depending on this for a living or retirement, but how many were and are? I wonder! Thanks for the post. It made me be more thankful for my decisions not to invest in the past. I do recall a brilliant saying of an old friend, "Setbacks pave the way for comebacks." Hopefully this will stand true as we see a rebound. Thanks for visiting my site.
Friends 4 Life!
Eddie Garcia
eddiegarcia08@gmail.com
@ Hor
Nah. I'm still on the 'wait and see' mode here. I am still trailing at what the President Obama's stimulus package will do with the economy. So far, there are no good signs yet. Although I am optimistic that better days for trading will soon come. Till then, I wait.
@ Eddie
IMO, that's a wise stance.
Stock trading will always be a gamble. You win some today, you lose some tomorrow -that is, if you still have something to lose. ^^
I pity your friend, and so some of mine too.
Yeah, I believe that too. These setbacks will definitely be our stepping stones for better financial wellness.
Thanks for sharing Eddie and for visiting my other blogs too.
Investing in the stock market can be risky. By using various investment techniques it is possible to manage positive gains. Long gone are the days of 20%+ returns. I will be happy with 5 - 10% a year for the next 10 years.
it seems nowadays you must be prepared for the worst that may come. thanks anyway of the wallet you have shown and there was no money at all. lol! and the message is very clear, we must prepare of economic crunch (meltdown or crisis), and concentrate more on savings. thanks for sharing.
@ covered calls
Right. And also, we should think more on the long-term gains through smaller investments.
@ deejay
Well, you hit the nail on the head there.
To me, good times or bad times, we must always be prepared for the inevitable. Deep pockets (with cash of course) and fat bank account would be a good start.
Oh the empty wallet? Somehow, I am trying to convince myself that it should always be empty so that I have the motivation to stuff it with more $100 bills. ^____^ Nah, I am just trying to be optimistic there deejay. For the truth of the matter, an empty wallet is not good at all.
I am so grateful that I have no money in the stock market, and my husband's career has more job security than most other jobs. This recession isn't really hurting us at all, but when I see what the government is doing to fix this problem, it worries me. I worry that the money that I have will continue to go down in value as inflation increases. That affects all of us.
Interesting post! I guess we can all sit here and wait for the economy to get better. The fact is their is no perfect time to invest. Sure, things look bad now but this is the time were fortunes are made.
Money isn't everything but it sure helps!
Just found your site through Entrecard and dropped my card. Stopping to say Hi and great post!
@ Jennifer
Well, I think you are one of the few who are 'luckier' Jen.
With the way that Pres. Obama is handling it, I think we are in good hands. However, this does not mean that we should be complacent.
I must admit that inflation will continue to rise; but those have learned the value of frugal living will still thrive, and sadly, life will be tougher for those who have not.
@ Rick
Nope. We cannot afford to sit and wait.
I agree on the other hand that there is no perfect time to invest. However, care and prudence must be exercised at all times. Sometimes, the lure of immediate and bigger gains get into us.
I also agree the there opportunities in this financial crisis. And yes, we can possible make fortunes out of this. However, this hinges on our ability and patience to find where and when to invest.
Money sure helps! ^ ^
@ Cher
Thanks Cher, you have a great blog there too! ^^
Hi there,
I have become a follower of your blog after seeing your link on my friend’s blog.
I update my blog every day (well at least I try to).
My blog is about my poker exploits and my day to day activities.
I would be very grateful if you could drop by and become a follower of my blog.
I’ll also put a link in for your blog – could you possibly do the same for me and put me in your reading list?
The blogs that I read are listed by the most recently updated, so the more you update the more hits you will receive from my site as you will be top of my list ;-)
I have a comments section and I always return all comments.
Many thanks and hope to see you drop by soon
Steve H
www.steveholdenpoker.blogspot.com
Nor -
Lucky with job security, sure. But it's because my husband's in the military. Need I say more?
I disagree that Obama is going to make this right. I hope I'm wrong, but I sincerely disagree with his solutions.