Hey everyone just got done reading a personal newsletter from Paul Dietrich. If your not familiar with him he is the one of the top financial professionals in the U.S. He is one of the top owners of Foxhall Capital and has written many articles for the Washington Post.
I’ve also had a chance to meet Paul and few of his close associates and hear what they have to say about the economy and so far he is on target. Everything he has told me over the last year has been true thus far. So when I get one of his personal newsletters I treat it like gold.
I must also mention that Paul is a professional investment adviser as well as at forex trading.
What we have faced so far.
- Currently the average fund has lost 48% according to the Washington Post.
- Trillions have been lost in 401k and IRA accounts. This doesn’t count the trillions lost in non-pension assets.
- The trillions lost in the real estate market, and the above average foreclosures all across the U.S.
- The Dow having it’s worse losing streak since 1931.
- The S&P 500 being down nearly 40% in 2008.
With all those things and a national deficit in the trillions what can we expect for 2009?
What’s up for 2009?
As far as Dietrich is concerned they expect more of the same for 2009, and that is what I am projecting as well. We can’t expect this mess to go away overnight. Though with some tough times still ahead we will make it through.
However don’t expect it to be another depression. Even with things as bad as they are I am guessing 2010 will be the comeback year however this is only a guess at this point with unemployment at almost 8% it will take some time for this to work itself out.
How is this going to effect you?
If you haven’t started looking for a way to cut down your debt now is better than later. My best suggestion is to cut down as much as you can and sock away as much as you can. Just cause 2008 is over and we have a new president in the White House doesn’t mean things are about to get better.
Also once things do start to turn around don’t loosen your grip and get lazy with your finances again. I learned this from the last recession we had. This is a typical thing that happens when we get through the tough times. We tend to let loose and forget about what just happened.
Stick with your plans even when the worst is over and get prepared for the next ression. Even though it may be a few years or even a decade or two till the next one the point is by staying prepared you’ll be ready for the next one whenever that may be.
To getting debt free,
Chris
This post was recently featured on The Carnival of Money Hacks by Little Miss Know It All.
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