Economic Optimism Is Not Unfounded

September 21, 2008 · Print This Article

Given the way the market has been receding into a potential recession, it may seem obvious that everything appears to be going in the wrong direction for everyone. The cost of oil and food are going up every day while the value of our investments are falling, making the economic situation look very bleak indeed. However, as justified as the average person’s pessimism may seem, there are several recent events that should qualify for hope that the economy isn’t all the doom and gloom that it appears to be at first.

At the beginning, when the S&P 500 managed to lose more than 5% within the first quarter of the current year it was another sign that the economy is faltering. However, the Federal Reserve came forth and conquered the issues of floundering business investments by stepping up to the plate and managing damage control by throwing large sums of money in all the spots that hurt the most financially. Of course, there is absolutely no end to the debates on whether this behavior on behalf of the government is the correct role to assume, especially considering the toll it takes on US taxpayers, but it nonetheless demands a look at what it helped to accomplish in the wake of all this federal behavior: An overall increase by 5% from the lows.

Even though those results only offset the damage by a small margin, it is important to look at the total picture of our economic situation and how it has progressed to its current point. With a careful approach to financial dynamics, you’ll see that we’re probably a lot closer to the end of the current rut than we are to the beginning of this economic sluggishness. That’s not to say that prosperity will return next week or so, but with the changes we’re seeing in the economy one can expect a turnaround sometime early next year if all goes according to the latest positive reflections.

In some aspects of the market, the future is inherently bright. For example, the online retailers are doing outstanding this year and have predicted a minimum of a 17% gain for sales and profits following the rest of the fiscal quarters. There’s also various technology companies who continue to do well despite the setbacks that are affecting large portions of the market. Although nobody is in a comfortable position during these rough times, there is at least a few lifesavers in the form of those companies who continue to prosper that are thrown out to a stormy sea.

Whatever may be said about the current economy and its diminishing appeal, there are nonetheless a few simple principles that anybody would do well to recognize when making investments and performing other activities that depend on the success of the market and the happenings of Wall Street. For starters, always know that an investment is something that adheres to the principle of long-term planning; this means that even if the economy might be slow, you should always set your sights on earning a profit in the long-term. Don’t look at 3 years or even 5; when it comes to an investment, you forecast should be situated around a 10 year plan that considers everything in terms of the most average returns expected from your standard stock investment. This is a sound strategy that keeps people from over-expending their assets and making hasty decisions that could otherwise hamper their financial security.

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21 Responses to “Economic Optimism Is Not Unfounded”

  1. diriak on July 31st, 2010 1:31 pm

    Article by at 2010-07-31 19:23:12
    Categorized in Tips for Getting a Mortgage,

  2. eldo oquino on August 4th, 2010 9:52 pm

    http://www.Thailand-VIP.com Thailand Expects 10 Percent Growth in Economy: BANGKOK, 4 AUGUST, 2010: Prime Minister Abhisi…

  3. grine on August 5th, 2010 11:48 am

    Kalorama Information publishes its third edition of this detailed report on the long term care industry at a time of growth but also change and concern for the long term care industry. The economy has challenged the business strategies of key players, while the recent healthcare legislation introduces changes that may affect revenues. These twin challenges are addressed in The Long-Term Care Market: Nursing Homes, Home Care, Hospice Care, and Assisted Living The report provides an in-depth examination of the market for long-term care today. The following segments are broken out in detail: This report covers the most important segments of the long term care industry, each of which provide medical care and/or assistance with the activities of … Long Term Care, Market, Nursing Homes, Home Care, Hospice

  4. brun on August 10th, 2010 2:46 am

    Our massive deficits and welfare spending will make us like modern day Greece. The same thing happened to Japan in the early 90's. Our dollar will be worthless. The world will drop the American dollar as the standard. We won't be able to create wealth. We will be no better than most of Russia. But at least the deadbeats will get free health care

  5. hedquis on August 10th, 2010 10:29 am

    i could listen to the beat all day

  6. herigamits on August 13th, 2010 3:51 pm

    A decade ago, Ben Bernanke had some sharp criticism for how the Bank of Japan was handling a cool economy.

  7. vivi darno on August 13th, 2010 6:20 pm

    #forex #fx #finance #Economy #Trading #Money: Plaza Bank Announces Ali Rizvi as Chief Banking Officer in Las Vegas

  8. atwa ter on August 14th, 2010 5:24 am

    We need this man to lead our country. Wake up voters!

  9. mong jit on August 15th, 2010 4:46 pm

    I think every band should join "The Economy Sucks Tour," featuring

  10. hack lino on August 16th, 2010 3:38 pm

    On most airlines, unrestricted economy ticket is booked as a Y fare. Full fare tickets with restrictions on travel dates, refunds, or advance reservations are commonly classed as B, H, or M, although some airlines may use S, W, or others. Heavily discounted fares, commonly T or W, will not permit cabin upgrades, refunds, or reservation changes, may restrict frequent flyer program eligibility, and/or impose other restrictions. Other fare codes such as X are restricted for use by consolidators, group charters, or travel industry professiona

  11. lessisa on August 21st, 2010 9:08 am

    Aside from the fact that I’m not happy with certain outcomes, if you do liberalism badly then people get it in their heads that maybe liberalism is pretty sucky. The economy sucks and HAMP was a complete failure, whether deliberately or not, and that’s what people know.

  12. minkmans hesner on August 22nd, 2010 6:27 pm

    the great depression was caused because the international credit structure was flawed, the distribution of wealth, and some other things.

    the first sign was the collapse of the stock market.

    Germany, Italy and France were still recovering from the war and could not afford to buy goods from America therefore hurting the economy.

    World War 2, was the reason the Great Depression ended. Weapon industries started to boom.

  13. botton on August 23rd, 2010 2:17 am

    Bank of Japan Gov. Masaaki Shirakawa and Prime Minister Naoto Kan spoke by phone to discuss the possible impact of a surging yen on Japan’s economy.

  14. kapuza on August 27th, 2010 4:12 am

    Japan PM to outline measures to boost economy: Japanese Prime Minister Naoto Kan, pictured here at his… – #AsiaToday

  15. biellee appadhanid on August 27th, 2010 6:44 am

    Economy grinds to near halt: The U.S. economy sputtered to a near stop in the second quarter, according to new est…

  16. sen sili on August 28th, 2010 9:10 pm

    “The Article aims at a preliminary estimate of the economic impact of mass digitization projects, using GBS as a case in point. It finds little support for the much-discussed hypothesis of the Association of American Publishers and Google’s competitors that the mass digitization of major U.S. libraries will reduce the revenues and profits of the most-affected publishers. In fact, the revenues and profits of the publishers who believe themselves to be most aggrieved by GBS, as measured by their willingness to file suit against Google for copyright infringement, increased at a faster rate after the project began, as compared to before its commencement. The rate of growth by publishers most affected by GBS is greater than the growth of the overall U.S. economy or of retail sales.”

  17. coux on August 30th, 2010 5:07 pm

    RT EPA Proposes New Fuel Economy Labels for Electric Cars

  18. rege on August 30th, 2010 10:40 pm

    Punished for what? Being on the side of freedom and liberty? You wanting people to die to save the earth? Bro the bible talks about that. The mark of the beast ring any bells? Oh or are you an atheist?

  19. choba on August 31st, 2010 12:56 pm

    RT The 50 US cites who would greatly benefit by using #SocEnt to spur their #EconDev #Economy #smartercities

  20. gilly koeniko on August 31st, 2010 2:19 pm

    Federal Reserve officials wrestled with a slew of unanswered questions about the economy before deciding at their Aug. 10 meeting to alter their strategy. Jon Hilsenrath has details from Washington.

  21. ven born on September 2nd, 2010 1:17 am

    keep up the good work

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