The aftereffects of an economic downfall have been felt by every American. In fact till date any of our countrymen (except for the politicians) cannot truthfully warranty a total economic recovery or even put a realistic, affordable time limit on it. The real question on hand is the path to be taken in such an uncertain period. The doubt lies in the sector of investment as some sort of investment say in movable or immovable assets are necessary to build a stable economic portfolio. Therefore a detailed discussion with a financial planner is of prime importance. To read more on the recovery assumptions in America, go to www.jobenomics.com
The positive effects of hiring the services of a qualified financial planner far outweigh the cons if any. A financial planner would be in the best position to lay the cards out for the investor to take his pick and would also he would also be able to offer directions to the same. It is absolutely important to be on the right page with your financial planner as it would give him a better idea of your expectations from the market. In our country at the moment a lot of economists are hell bent on predicting the future of our economy. The honest truth is that absolutely nobody could certify the answer to that question. It is not only difficult but impossible to predict the direction in which we are going due to the complicated global level intricacies involved.
The overall conditions have created certain possible outcomes nonetheless. One of these is the V-shaped recovery strategy, the same one being floated by the government. As expected it provides a very rosy picture and does include certain benefits for the investor. It depends on the assumptions which include a difference of 6% in the GDP and a difference of 5% in the unemployment area. The American market has been doing fairly well as it has recorded a steady rise in the stocks. It is simply according to the laws of physics that the greater the ball drops, the higher it raises. Know more about this at www.jobenomics.com
In case of a W-shaped recovery the whole equation pertaining to investment changes. The real estate assets bubble would not be able to sustain much longer. A sharp unprecedented rise in the stock markets has been recorded right after the recession. Such momentum is extremely difficult to keep up and thus the market could turn volatile any day. In such a scenario the best thing to be done is to get rid of all the debts as early as possible. It is the nature of debts to slowly but surely eat in to your savings via increasing interest rates, mortgages and other technicalities. It is thus wise to invest conservatively.
An L-shaped recovery strategy paints a cumbersome picture to those already burdened with debt. This would mean a loss for absolutely everyone. Some would obviously loose more than others and in such a case all sorts of assets will become useless and cash would be the answer. The real economic power would stay in the hands of people having cash in their hands.