I am not a believer in doom and gloom and truly believe that each of us is a master of our destination. Whatever we are passionate about, and preserve in our pursuit of that goal, we can accomplish. However, we need to pay attention to the economy and what is being said about it.
Today I had a meeting with a prominent banker and also attended a three hour seminar in which a warning was issued. The banker assured me that the worst was over and that, for the most part, we will be smelling the “roses”. There was no explanation for that statement; it was presented as something I should just accept.
The seminar, by virtue of the time allowed for the presentation had a different point of view.the following is a quote from part of the presentation. His concern was with the “Sustainability” in our “recovery”, especially where there has been little of not correction of the forces that put the economy in the first dip and no preventive future “firewalling” against the cross-tier collapses that made the first one so dramatic. ( I will ask permission to give you a link to more on this subject.)
I see a strong growth in the residential rental market,both in multi-family and single family homes. Many people that have relied on their homes to provide retirement will no longer have it available. The Wall Street Journal, this morning, said that home prices fell to new lows in December. From personal experience I know that obtaining a new loan for the purchase of a home is virtually impossible for many potential buyers. I bleive that the days of using your home as a wealth creating machine are over.
Be aware of the rising food and gas prices as well as the turmoil in the middle east. Be conservative in your spending but aggressive in growing your business. Growing a business does not always require a large infusion of cash, in a small business, hard work and a good business and marketing plan, are the tools you need to succeed,
Risk must be evaluated not by the fear it generates in you of the probability of your success, but by the value of the good.
Have a great day!