Oct 18 2008
The craziness continues
It’s been ANOTHER crazy week in the world of finance.
Global stock markets have pretty much gone berserk, with massive falls and unbelievable volatility seen all around the world.
The one trend, if you can even call it that, is the fact that nothing governments do seems to have much effect on the pessimism and lack of confidence investors are feeling right now.
Wall Street is virtually unrecognisable, capitalism appears to be on the wane and the financial sector seems to be heading towards higher regulation by the authorities and governments.
I’ll leave the debate over the pros and cons of taking this path to the experts, although a definitive verdict seems to be lacking at the moment.
I’m more concerned with what we, the regular folks on Main Street, can do, as we watch stock markets plunge, oil prices spiral downwards and our economy slips into seeming recession.
Having sifted through reports and commentaries from all over the world, the key message I’m hearing is: DON’T PANIC.
The craziness in stock markets is currently being driven by fear and panic (when is it not?). Signs in the real economy are not great, but they certainly don’t warrant the irrational sell-offs of virtually every sector that we have seen in the past week or so.
If sense and calm can prevail, we might be able to see a bit more clearly and slow the chaos down just a bit.
The second over-riding message that is being sent out is that prudence is very much needed right now.
While there’s no need to panic, it’s also clear that there are tougher times ahead. I for one am curtailing any unnecessary purchases and trying to up my levels of savings.
The experts say that this strategy will enable us to take advantage of bargains and investment opportunities as and when they arise in the months ahead.
But of all the difference bits of advice I’ve read of late, the one that resonated the most with me was the recommendation for us to focus on taking care of the other aspects of our lives even as our financials take a beating.
One article I read said we should keep our fitness up, get in shape and stay in good health.
Being fit and healthy always helps one to keep in a positive frame of mind, and endorphins, the hormones released when we work out, are all-natural pick-me-ups that rarely fail to get us in a good mood.
This has become pretty important in the current crisis.
Now, I don’t proclaim to be a financial guru, but not panicking, being cautious with our money and staying healthy seem like good advice to me, not just in times of crises but all the time!
Here’s wishing you all a good week ahead, and hopefully less craziness in the financial markets!