Facing the economic Slow down
By vsraovsr
@vsraovsr (734)
India
October 18, 2008 9:19am CST
Dear mylot friends,
How are you planning to face the economic slow down?most of the world economies are in bad shape and allthe stock markets are nose diving. Fortunately we in India the impact is not as severe as in US and UK, because the banks here are in strong postion on their liquidity and more or less insulated.Many people here too lost miliions of rupees( Indian Currency) who invested in stock markets. Few sectors which are dependent on US,UK markets like software and telecom , ,aviation,real estate are the major sufferers.
But as many people of older generations of their conservative living I feel will escape the slow down but the current generation of people who are in their mid 20s and 30s may be effected because of most of them are employed in the above mentioned sectors. How about in your place and how are you planning to cope up the same.
1 person likes this
2 responses
@giniaslim (21)
• United States
4 Nov 08
The funny thing about this conversation that you started is that I have had this same conversation with other people like myself who use to wonder the same thing, before it even happened. I always had a theory that you should save, save save when i comes to your money and what you earn. You want to be well prepared for situations like this. Alot of people don't believe in saving money outside of banks but when you have banks who can't even supply you with money then why wouldn't you. You have to sometimes entrust in yourself when it comes to your money. I like to have my money on hand for the JUST IN CASE. I was effected by the economic slow down but at the same time I Was very smart about it as well.
@Qaeyious (2357)
• United States
23 Oct 08
Two years ago I saw something coming, and I took my half of my cash options at that time. I took the rest in January because I didn't want to have the tax burden in a single year. And the prices were still going down. The first option was at $135 then at less than $100. The price of the stock now is about $65.
I also made my 401k more moderate, less in stocks and more in bonds - currently I only went down 15K out of 110K so I am not in the red given the entire picture. So I think i made good choices in the short term. Only time will tell in the long term.
Again, I must stress, I am not a professional, nor am I licensed to give advice - I am only doing common sense, I hope ...
The time to buy is when the price is high - not when everyone is selling at a ridiculously low price as is now. The time to sell was at least a year ago - more optimally two years ago. You sell now, you guarantee your loss.
And I'm sorry if you got tangled in that alleged "hot" market that made your accounts worth only pennies now, well ... I hope everyone learns from their experiences, and use more intelligence from now on.
And if you had a professional financial adviser ... well -
Do as you will.
