Each day, we’re all reminded that we are in a recession. Naturally, we started to wonder what that really meant. Recessions are defined as two negative quarters in a row. So, properly speaking, it seems we’ve been in a recession. And when we’ve had 3 consecutive “growth” quarters, that must mean we’re out of the recession.
But all that is kinda missing the real point, isn’t it?
After all, if this is how we define “recession”, how do we define “normal”? Was our 2008 economy normal? We’d hate to think there’s anything normal about an economy fueled by massive speculative bubbles (real estate, derivatives, etc.)
Maybe a better word to describe what’s happening would be “correction”. Meaning the economy you’re seeing now is more “normal” than our previous economy based on covert money-swapping.
So, when you’re advised to “ride out the recession”, or “hunker down”, or “survive now so you can thrive later”, you should find a new advisor.
Or at least remember that, while you’re in play-it-safe mode, you have a competitor who is not. Who is making gains on you, even if it doesn’t show right away. Who understands that the worst thing you can do during a so-called “recession”, is to create a real one for yourself.
Embrace the times, difficult as they may seem. Love the true normal. Invest in it with confidence. Because it’s the one thing that is real.