Investing: Are We In ForThe Big One?

moneyBy now, most people are aware of the stockmarket tumble of yesterday. They call it a “tumble”, but it is the biggest drop since 911, so now the conversation ( which for those interested has been going on for quite some time) is debating how long lasting the direction will be. Some say this and some say that- which is how it always is in the financial columns.

I can’t say – and wouldn’t try- to gauge everything and conclude- not in public anyway, but there are some seismic indicators. Like in California- there is a big one coming, but whether this time? No one really knows. I suppose you just decide against living in California if you are really worried about it. In the stockmarket, and the economy overall we do see some trouble with smaller banks (which I find a little worrisome), I think we will see energy “rise again”, the housing situation of continuing correction of an overinflated market will likely continue in the background… and the volatile Chinese market- which seemed to trigger this last round of shocks will be what it is. Years ago, many conservative financial advisors like Larry Burkett warned about the instability we are seeing, but like California’s “big one” we keep missing the catastrophe. Maybe I’m a little too laid back ( which makes me a good “buy and hold” candidate) but if it all goes down the tubes in a crash and a new bear market…. what real options are there for investing your money for retirement? Everything took a hit yesterday, and is bravely bouncing back today. I am personally in the ‘hold steady’ mood, although admittedly that is my default when everyone is panicking.

The good advice is still the same: lower risk, pay off debt, budget wisely, and invest in people and the spiritual treasuries. Some things don’t change.

I personally think 2007 will ride out this last shaking in the market. But I am no expert and go with my gut on such things. I do think it is an indication of things coming… so if we are given time to consolidate and get our house in order it only makes sense that that is what we should be doing. No one can time these things- that is what watching the market and reading the financial pages will tell you- no one can really time it, but they can read the signals on the seismograph. Right about now, that parable about building on the firm foundation makes lots of sense and seems quite à propos.