Comments on: The stock market is way up! http://totalcandor.com/blog/2008/01/the-stock-market-is-way-up/ A Conversation About Income, Wealth, and the Steps in Between Sun, 25 Dec 2011 17:20:47 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Michael http://totalcandor.com/blog/2008/01/the-stock-market-is-way-up/comment-page-1/#comment-2202 Michael Wed, 23 Jan 2008 02:01:00 +0000 http://totalcandor.com/blog/?p=127#comment-2202 Thanks for your comment, Lisa. While it's impossible to predict the precise consequences of a recession, as a general rule it's usually not a good short term phenomenon for investors. But the bigger potential implication of a recession is a job loss. Such a spontaneous loss of income is a key reason to make sure you a) have an emergency funs set aside and b) that it is invested in a high interest-earning account you can tap into quickly. Still, the overwhelming majority of people will not suffer a great negative financial consequence as a result of a recession. FYI, a recession is often defined "as two consecutive quarters of decline in real GDP." So, no, you wouldn't recognize it while crossing the street. Only when someone tells you. Here's hoping that if any of you ever hear it, that the information comes from a newspaper and not your HR department. Thanks for your comment, Lisa. While it’s impossible to predict the precise consequences of a recession, as a general rule it’s usually not a good short term phenomenon for investors. But the bigger potential implication of a recession is a job loss. Such a spontaneous loss of income is a key reason to make sure you a) have an emergency funs set aside and b) that it is invested in a high interest-earning account you can tap into quickly. Still, the overwhelming majority of people will not suffer a great negative financial consequence as a result of a recession.

FYI, a recession is often defined “as two consecutive quarters of decline in real GDP.” So, no, you wouldn’t recognize it while crossing the street. Only when someone tells you. Here’s hoping that if any of you ever hear it, that the information comes from a newspaper and not your HR department.

]]> By: Lisa http://totalcandor.com/blog/2008/01/the-stock-market-is-way-up/comment-page-1/#comment-2198 Lisa Tue, 22 Jan 2008 22:52:03 +0000 http://totalcandor.com/blog/?p=127#comment-2198 Good to know that we're not in trouble for the time being. The news at the end of the day was certainly better than at the beginning. I wonder, however, that if we do head into a recession, what that will mean to investors. Granted, I imagine not all recessions are created equal. I'm not even sure I'd know a recession if it kicked me in the shins, but it's still a scary word to my meek ears. Good to know that we’re not in trouble for the time being. The news at the end of the day was certainly better than at the beginning.

I wonder, however, that if we do head into a recession, what that will mean to investors. Granted, I imagine not all recessions are created equal. I’m not even sure I’d know a recession if it kicked me in the shins, but it’s still a scary word to my meek ears.

]]>