The press is full of news talking about a 2nd recession. Is this the tail wagging the dog or the dog wagging the tail?
The press has the power to distort facts, create emotion and to create a self fulfilling prophsy.
Even the stock market is playing into people’s fears. The usual thought is that it is foretelling the state of the economy by 6 months and is a leading indicator of what’s to come.
The fact that it is whipsawing all over the place creates even more fear. Forget the fact that fundamentals play a small part in stock market activity today. There are so many huge computer programs and hedging programs that controll the market and can change things on a dime and create further gyrations. People are forgetting that major corp have a fantastic amount of cash in their hoards and many are doing better than they have in years.
Our world of instant news makes news less reliable. You should not pay attention to hype. Do you homework whether investing in the stock market or in real estate. There are bargains in each area.
Remember, the best time to invest is when the blood is in the streets. I forget who said that. Do you remember?
