Yesterday's market "correction" had a lot of investors experiencing acute arm pain as they clutched their chests, watching the Dow Jones average plummet over 200 points in the course of about 2 seconds. The swiftness of the drop was attributed to a computer glitch, which isn't exactly reassuring, either from a technological standpoint (how did that happen???!?!) or a practical one (it still dropped over 500 points, right?). The Shanghai index correction was the obvious impetus for the drop, and that makes me feel even worse.
I don't have much dough invested in the stock markets, save for a paltry sum that fluctuates in my IRA, so I wasn't as concerned about the drop as say, my dad, whose entire 401k is directly affected by market swings.
Despite this, I was definitely clutching my chest when I heard that former Federal Reserve Chairman Alan Greenspan predicted a recession for the US economy. Some economists have been predicting a recession for a while, based on the housing slowdown/slump or other indicators that most of us don't think about much. Other economists with actual jobs have predicted that a full-blown recession is not, in fact, likely, but it certainly got me thinking: how does one prepare for the possibility of a recession?
There's lots of info out there on how to survive a recession as an investor, but what about us regular Joes who are simply worried that we won't have a job should the economy turn southward?
Well, there are some articles and books on the subject. Some bloggers are giving it some serious thought and have their own ideas on the subject. Forums are filled with helpful (and not-so-helpful) tidbits. Paul Kirvan penned some advice back in 1991 regarding this exact topic, when it may have been even more relevant than today.
Here are some ideas that I am exploring:
How about you guys? Are eBay careers the way to go? Do you have any ideas for recession prep besides what we normally tout to our readers (Save, Budget, Buy Used, Library Card, etc.)?
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I'm so glad you wrote about this Andrea. I heard a little bit about this story on NPR as well and thought it would make a great piece for WB.
Apparently Chinese people are building their own version of the "stock bubble." Oh man, we are in trouble.
How can I blame the people who brought us kung pao everything?
Actually, trading in China is quite something. I remember stumbling upon a stock exchange house in mainland China, and I totally thought that I was in a gambling parlor. It's so new that there are bound to be plenty of weird panics like this one.
I don't know - this might be one time in which China's heavily-regulated markets might be a GOOD thing for us.
Wow. You've got to tell me that story one of these days. =)