Watch this Frank Kern video and find out how you can boost the economy. Many of our congressional leaders are running around trying to calm the public before wide-spread panic sets in. The recent scares on Wall Street and ominous predictions of economists have many people looking for the best way to protect their money.
What can be done about this failing economy? To the surprise of many, a lot.
Tortoise And The Hare
The old story about the tortoise and the hare can teach us much about how to get through a wavering economy. It’s true that the stock market has been anything but predictable, but that doesn’t mean everyone should cash out their money and run.
In fact, when the stock market experiences such great highs and lows from one day to the next, a sudden surge of liquidation can force the stock market to plummet for longer periods of time. The further the slump in the market, the harder it is for the economy to regain control.
Patience is key when it comes to stock market investing. In fact, the overall percentage of loss in the stock market following the S&P’s credit downgrade was minimal compared to the day to day gain and loss pattern. When people become panicked, they may quick decisions to liquidate their investments and buy up solid commodities such as gold. Despite the fact that gold maintains its value well over time, it certainly does nothing for the economy as whole.
All The Eggs In One Basket
When economic times are uncertain, the best strategy is to stay the course. The likelihood that anyone “loses everything” in the stock market has very little to do with variability in the market itself. Instead, losing everything is the result of a poorly planned investment portfolio. We have always heard not to put all of your eggs in one basket, and the same is true for investments. Having your money spread around many types of investments is the best way to fair a turbulent economy. Investing money in bonds, stocks, money market accounts, gold and keeping some in cash will prevent any investor from losing everything when one of these investments takes a dive.
Keep Your Head Up
Consumer confidence plays a large role in the health of the economy. Historically, each economic recession was preceded by a drop in consumer confidence. Negative attitudes about the economy result in less consumer spending and an increase in panic-stricken decisions that could backfire. Consumer spending is good when attitudes towards the economy are good, which pumps money into the economy and can lead to more jobs for the unemployed.
Christopher understands that financial hardships can affect honest, hard-working people. Growing up in a very blue collar family and rural area of Indiana, money didn’t always come easy for his parents. The struggles his family faced in his childhood made a significant impression on his business philosophy today.