Personal Money Management 101 Blog

Definition of Recession
As the financial crisis continues we’re told the world is heading into recession, but what exactly does this mean?

Technically a recession is defined as two consecutive quarters of negative growth. Under normal circumstances economic output increases, so that the economy as a whole produces more than it did in the past. But sometimes that increase is halted and for a time we produce less – that is recession, and is where we seem to be heading at the moment.

Economies typically move in cycles, good times (booms) are followed by the less good and so an and so forth. Despite GB leader Gordon Brown’s claim to have abolished boom an bust, what’s happening right now is just the down part of the cycle. Read the rest of this entry »

The current financial crisis began with a real estate crunch verging on depresion that continues and seems set to continue for some time to come. Whatever your interest in the real estate market the following might help you weather the storm.

Sellers
To say this isn’t the best time to sell is an understatement. Unless you really need to move it’s best to wait awhile until markets return to more normal conditions. The world has limited land but a growing population. Over time real estate has consistently proven to be one of best investments and will surely continue to be so. Read the rest of this entry »

by Steve Selengut

Every fall, especially in opportunity rich markets like this, I encourage investors to think about some year-end strategies that make the final calendar quarter a special time in all markets. Several forces are at work, all of which have links to conventional Wall Street wisdom; none of which promote good long-term investment decision-making. Read the rest of this entry »

by Steve Selengut

There’s a bright light at the end of the tunnel— finally. Most of the really well respected, long term investors are advising their audiences to hang in there, to stop the panic selling, and to look for the great companies that have withstood the economic downturns of the past.

Buffet, Bogle, Gross, Schwab, and company offer sound advice— don’t run and hide, it’s time to hit the Wall Street Mall and go shopping! They’ve seen the indicators; they’ve been there before. So have many of you. Clearly, it’s time for action. Read the rest of this entry »

The world is in the midst of a financial crisis caused by the irresponsible lending of America’s banking system. Despite this, and a multi-billion dollar government (ie taxpayer) bailout, humbled institutions are still planning to pay huge bonuses to the staff that created the mess. Read the rest of this entry »