Back HomeFear Based Economy???
August 4th, 2011 by keithandkinseyI find today’s stock market drop (512 points in the dow) quite humorous. It seems to be entirely irrational and fear based. How have the governments decisions over the past few days really affected you? My guess is not at all. Did Caterpillar really loose 10% in company value over the past 3 days? Not a chance. Is it really bad news that unemployment went from 401,000 to 400,000? It decreased.
We invest in both the stock markets and real estate, but today proves why we really like real estate. Real Estate is not near as volatile, and we have much more control over it than we do over the companies we hold shares of. Yes, we have probably lost 10% in real estate value over the past 3 years (not 3 days), but guess what, rent went up. Even though values are down, who cares, it doesn’t matter.
Does what the media tells you or what the government does really change your life that much? No. So, why does it cause fear in people? We are each in charge of our own economy. We make our own decisions of our level of education, careers, investments, what we spend our money on, how hard we work, how much we save, what kind of insurance we carry. Yes, we go through ups and downs sometimes, but our life is in God’s hands and ours, not the politicians.
The point? Don’t freak out over what the media tells you or political stances. Don’t expect that government to take care of you. Choose your own path. Don’t follow the crowd. Make smart decisions. Spend your own money wisely. If we all did this, the economy would be just fine.
