Recession

The recession is upon us. It is about time. I remember when the recession first started a year ago. At the time, I clearly remember my conversations with investment managers, mutual fund representatives and insurance people. They were all telling me that now was the right time to buy! They were so passionate and sure of themselves. They believed that the bull market would last forever and all I would have to do is give them all my money and all my troubles would be solved. I remember thinking that a year from now, the economy was going to be destroyed, but still they were adamant. It is good for me that I ignored their pleas.

Now we have the long struggle ahead of us. There will be no quick rebound. All we can do is wait and see. The virus of recession is already spreading around the world. Soon even China will be bailing out major industries as demand slows. Growth will slow and even contract. It is not a good situation but it is the only thing that can balance out the excess which we have had over the past few years. We have lived in a fanciful world where credit was free and easy. Now we need to pay back the world. For me, I am glad for the downturn. I have always believed that the world’s assets have been overpriced. Now, I will actually be able to afford investments such as a house or stocks.