Storm Watch Dow 3000
I remember that there was a prediction of a Dow 30,000, I believe it was H.S. Dent, at the time it was correct in direction but not in magnitude. It never reached that level but if you were invested in the market you would have done well at that time. Is there a chance that the Dow could fall to 3000? Perhaps the odds are the same as the Dow reaching 30,000 but there are flags up that are pointing to a lower Dow. It is a good idea to watch carefully and be prepared to minimize the downside risk of your portfolio if you are invested in the market.
There is a storm approaching the coast of North Carolina that is expected to bring winds of a 115 mph or greater. People are leaving the area and protecting their personal belongings and their homes. The prudent ones are preparing for the storm by watching and listening, some are evacuating, and there are the very few brave ones or foolish ones who will ride it out and take their chances.
What kind of investor are you; will you ride the wild swings, are you evacuating by taking your money out of the financial paper markets and putting it into gold or other commodities, or are you shifting into less volatile stock market investments while watching and listening closely to the market gurus?
It is a good idea to seek safe shelter, especially for those headed into your retirement years or are already there. While the government puts into action plans to decrease their debt burdens we should all follow suit, by keeping our expenses down and our savings up.
Dow 3000 may sound extreme but it is a possibility if the our nation's debt problem is not resolved, if there is a global debt problem, and the banking industry cannot manage out all the risk they still have in their loan portfolios.
Are you an entrepreneur, then you are an optimist. You see the glass half full not half empty. But you aren't foolish and you know how to manage through rough waters. There are and will be opportunities for new business and old businesses re-inventing themselves. Prepare for the storm, but keep an eye out for the clearest path and the opportunities that will present themselves as the clouds move on.
We don't want to think it, but there may be tougher times coming around the corner. It would just be prudent to prepare. The other thing that usually happens in difficult financial times is that families, friendships, and marriages break down, so we need to remember to fight for and hang on to what is really important, family, friendships, our marriages, our hearts, and Agape love.
I hear Ethel Merman in the background singing, "Everything's Coming Up Roses," right about now.
Stay focused, don't waste, give when you can, save, work hard, work smart, love one another.
Bizincubators, inspiring and educating entrepreneurs.
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