Wednesday, November 4, 2009

Is The Economic Forecast Preventing Or Pushing You?

Who are you to believe?

On one hand, we hear the recession is coming to an end. Finally! We hear the Dow Jones economic sentiment indicator rebounds as it rises to the highest level since August of 2008. The Federal Reserve says the recession is ending, too. On August 12, 2009 they said they were taking a step back toward normal policy because the end is in sight. Unemployment rates are not rising, much, which experts tout as a leading indicator of an economic turnaround.

On the other hand, opposing experts, like Nouriel Roubini of Forbes, tell us the economy is not growing and will not grow. Not signficantly, anyways, throughout 2010! Even worse, others in this hand tell us that the decline will continue until mid-2010 until the economy stabilizes sometime next summer. Economic growth won't come until sometime well after that! The experts in this hand point to the low, low, low consumer spending as a cyclical event that will affect everything from retailers to government to job creation.

So again, who are we to believe? Who do you believe? As a company focused on the home, families and living we're interested in learning the answer to these questions. How has all this up and down uncertainty changed how you live? How has it changed your spending habits? Your daily routine?

Have you felt the uncertain future predictions have been preventing you or pushing you to do things? For example, house value is of top priority to all homeowners these days. So has the uncertainty made you want to invest more in your home to ensure it's positive value or has it made you decide to hold off on necessary maintenance and other projects because you're afraid to invest any more in your home?

Inquiring minds want to know...

1 comment:

  1. Great post...you're getting right at the crux of the issue and asking the right questions. In these uncertain times I believe that most everyone is justifiably frightened, especially given the mixed signals found in most news sources. The ironic part is that an economic turnaround ultimately comes down to these frightened individuals...and the "need" to spend and grow the economy.

    I'd like to add one observation. I'm a news hound and regularly scour the internet hoping to find the answer you're looking for...and have thus far come away mystified. However, reviewing what I've learned from this collective assembly of news bites...prior to March of this year I was unable to find any positive economic news...zippo. Increasingly since March the news bites have shown a broader balance of positive and negative news...to me this suggests a real shift...and I'm opitimistic that more positive news will continue to develop.

    So I'm investing now in the next economic expansion...doing what I can as an individual to help...hoping others will join in.

    ReplyDelete

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