I'm a cypher, wrapped in an enigma, smothered in secret sauce. Also, my name is Kev and I own this here website.

Alright, I'm just a guy (though an admittedly awesome one at that -- oh, and humble) who likes to blog. Sarcasm, quick wit and gorilla dust are my tools of the trade. Feel free to browse my blog and follow me. It's okay. I won't call the cops. Click here if you'd like to write a guest blog for SKOS.


Name:


E-mail:


Message:


Are you human?
(Hint: Type "yes" without quotes)

Roads? Where We’re Going We Don’t Need Roads
March 4, 2009
Blog
16

These are uncertain times in which we’re living. The economy is in shambles. We have a socialist as president who, likely because he doth protest too much, has wall street worried banks could become nationalized sooner or later. As such, the stock market is plummeting and investors are panicking.

This brings us to the question on all of your minds:

“What does Kev think about all this?”

I think it’s awesome.

Not to sound too highbrow or anything, but I feel like Rosie O’Donnell at a bacon cheeseburger factory when everything is half price.

Let me back up for a moment.

I have been preparing 2+ years for this moment — the moment where I had my house in order (so to speak) and was ready to dive into the stock market. I eliminated all of my consumer debt. I started participating in my employer’s 401k plan and opened a Roth IRA for myself. I began saving money like it was a bratty cheerleader on Heroes.

And in the Fall of 2008, once I was ready to dive in, the market plummeted.

The timing was uncanny. There I was, with money to invest, and everything was dropping like Meg Ryan’s surgically-altered face if she sneezed too hard.

What was a guy to do?

I’ll tell you what I did. I danced. I went Michael Flatley on my kitchen floor.

You see, there are two ways you can look at this:

1. The United States economy is never going to recover. This recession is merely the beginning of the end. As such, you best stock up on guns, ammo and canned food.

2. The economy will eventually recover. Obama might do his best to screw it up, but it will recover in spite of him. As such, those with money to spend have possibly a once-in-a-lifetime opportunity presented to us: We can buy into investments at discount prices.

If the former happens, I’m screwed regardless of whether or not I stocked up on guns, ammo and canned food. Someone with bigger guns and more ammo would inevitably come along and steal my canned food.

But if the latter happens, and I believe it will, this recession is Butch Cassidy to my Mozart. In other words, it’s got my back.

I realize people have it rough these days. As fitting as it would be if only those who were careless and greedy faced financial hardships, there are people who did things the right way who are having a difficult time, too. People who bought houses they could afford are having trouble paying their mortgages just like the greedy neighbors who knowingly got in over their heads. People who worked hard and lived within their means are losing their jobs just like the lazy people with massive credit card debt. If karma is real (it’s not), it’s clearly asleep at the wheel.

But for many of us the only real, tangible way the current recession impacts our lives is via our retirement or investment portfolios. With the exception of that little tidbit, we’ve been blessed. And to those people I say, “turn your frown upside down.”

Unless you are near or in retirement, this downturn is a good thing. It all depends on how you choose to look at it.

The last time my favorite index fund was available at its current price, I was still in high school. My favorite individual stock, one I will be buying in the not-too-distant future, was last available at yesterday’s closing price in 1995.

In 1995, the last thing on my mind was investing (literally). The current recession, sad as it might be, has essentially given me keys to a time machine.

It’s no DeLorean, but I’ll take it.

What is YOUR outlook on what’s going on? Everyone has a different perspective (many much different than mine), so please feel free to share.

16 Comments So Far

View/Hide Comments


Leave a Comment

Don't have a photo next to your name? Want one? They're called Avatars. No, it has nothing to do with that James Cameron movie. No, I don't know why they're called that. Look, do you want one or not? Gosh, you're difficult.