During the past six months I’ve said it again and again, but this just needs repeating: This current pain in the market is much closer to being over than most people think. The markets are seeing prices that remain irrationally low and what we see now is a buying opportunity that only comes along every 30 years or so.
In fact, this same claim is being made by a growing number of financial professionals, many of whom were saying a year ago that credit was too lose and the housing market was ready to cave in. Now these same professionals are saying that things will get better, and sooner rather than later.
In fact, with surprisingly positive economic numbers coming out, it’s becoming apparent that the prime reason the markets aren’t already improving is that, unfortunately, fear is getting the best of people. They remain convinced that the Dow is going to zero and the world is coming to an end. And yet more than 90 percent of the U.S. population is still employed and, according to the Bureau of Economic Analysis, Gross Domestic Product is less than 6 percent off its peak set late last year. The fact is that, as bad as things are, the current situation isn’t as dire as many previous crises.
At this point, the advice we hope to convey to readers how important it is that they not hide from this opportunity. We have said before and still believe that we are about to witness one of the greatest shifts of wealth in our countries history. Don’t get caught on the sidelines. Speak with a financial professional who is knowledgeable and trustworthy so that you can take advantage of the coming recovery.
Recently, attention has been drawn to automotive retirees and the risk they see of losing their pensions if their former employers go into bankruptcy. Unfortunately this is a very real risk for a lot of people, not just automotive retirees, but anyone drawing a pension, including public employees. We strongly encourage them to get informed on the subject. In fact, it was recently discovered that the State Teachers Retirement Systems of Ohio, the pension fund for Ohio teachers, is in terrible financial shape.
So please, if you or someone that you know is in this or a similar situation, please talk to someone knowledgeable and independent of the former employer. It’s very important that this person, preferably a financial professional, be an independent third party that can provide an objective opinion on the former employer and its likelihood of surviving the remainder of this recession.