I have always thought the implications of a bubble burst would be much more severe than what it was 20 years ago. In other words it is better to be in the same level rather than to go up and crash. Having said that when do u think the economy will pick up?
I don't know when the economy will pick up. But my financial advisor thinks this is a great time for younger people (under 40) to be investing in the stock market thru a 401K, IRA, or similar program. A friend pointed out one can buy a share of GM for less than a large coffee and a GE share for the price of a small pizza.
Rumor has it as soon as Hades freezes over. Unlike the CapitalOne credit card advertisements on television don't expect the freeze over to happen anytime soon.
It's a huge leap of faith, but I just upped my 457 contribution (public employee version of a 401K), with the idea that it's a buyer's market. While I'm not under 40 (43), I think there's still enough time left in my career to turn a good profit when the market turns around eventually. I also contribute close to the maximum (50%) from my teaching job to a 401K, but that to me is just play money. If I lose it all, then cest la vie. If I make a profit, then all the better.
Because it always does. People will start spending eventually. I am more worried about this - http://news.bbc.co.uk/1/hi/uk/7951838.stm
On the other side of the Pacific, I have increased my salary deductions into my pension fund share scheme. I have picked the high risk ones as I figure they will never be cheaper. If the sharemarket goes completely down the tubes, then what is your money worth anyway? I know it is at the S bend at the moment, but I am betting it will come back. Buy the bargains! This assumes, of course, you have a job and some money. If you don't, then perhaps if "those of us that do" start sensible spending and investing you will get one. Getting some private money into the market might be a start, even it is only little guys like me with a little bit. Perhaps it will only be the little guys that will do it. It always seems to be so. The big guys break everything for us to fix, from wars to recessions.
