Worst time ever?
One of the perks of my Beta Gamma Sigma membership is a subscription to Business Week. With so much happening so fast, I try to read it through as quickly as possible, before the news is outdated!
However, some of the information is still good information that will not be outdated… yet.
And so, as I literally watch news stories on TV about the lines for donated food, and listen to the story of the farm family who put the word out that they had free potatoes, leeks and onions for anyone who would come get them, and thousands showed up the first day, it’s no wonder I start to feel we’re seeing visions of the next “DEPRESSION”. It has to be on the minds of others, too!
But one great article in Business Week put it all into perspective for me: It shows the actual numbers, in nice graph form, sizing up the current bear market, comparing today with the 11 worst markets in the last 108 years. Here is what it shows:
The Depression of 1932 still beats them all. The total decline, which started on March 8, 1932, went down 54% in 122 days. According to many financial experts, what led to such a LONG recovery, however, was the lack of the government stepping in and taking charge.
The next-worst decline was on March 10, 1937, when the market dropped 49% in 386 days.
The most recent “top 11″ was in 1973, when, on January 11, the market dropped 45% in 694 days.
So where are we right now? Well, today we are listed as number 11, starting October 9, 2007 and dropping 41% in 406 days. What we don’t know is where will this market be in another 406 days. It took the 10th worst market 815 days to reach a drop of 815 points, which was on September 30, 1912.
What does all of this mean? It means this isn’t the first time the markets have made the population nervous. I’m sure it won’t be the last time. However, today we have experts on what worked and what went wrong in the last serious bear markets working on trying to help us get out of this market quickly. And no matter what your political party, it’s important that you realize there will not be a huge change in direction with the new administration, either (from the Treasury stand-point, that is).
I may not agree with all that the government is doing, but I understand what they’re trying to do. It’s easy for all of us to grumble and disagree with their choices, but with having to navigate uncharted territory, all we can hope for is that they continue to stay honest and change the course if they see that their original plans aren’t working.
Meanwhile, these are not the worst times ever. Today is still a day of incredible opportunity, especially if you are a service professional looking to start or grow a business. It’s not all doom and gloom! I challenge you to, instead of looking at what the LATEST bad news is, look up stories of people living their dreams.
One last example: Financial week just released a story of the top business sectors for 2009. As a fitness professional, it makes me want to open up my personal training services, again! Read the story, here: http://www.financialweek.com/apps/pbcs.dll/article?AID=/20081123/REG/811219989.
Happy Thanksgiving to all in the US!
Margie
