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Hair, Hair, Everywhere – the Recession Edition

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I wrote a hair post in both 2007 and 2008, so I suppose it’s only appropriate to continue the tradition in 2009! This post is dedicated to recession’s impact on hair budgets.

The recession is a major reason why I’ve been neglecting my hair a bit during these past several months: skipping my straightening treatment ($250), trading down my stylist (from $60 per cut to $20 per cut), and spacing out my haircuts (long layers mean I haven’t cut my hair in… I’m too embarrassed to admit how long!).

Recently, I thought about getting a digital perm because I have a hankering for long loose curls. A few of my girlfriends got it done and they look beautiful. Imagine long cascading waves that tumble past your shoulders. icon wink Hair, Hair, Everywhere – the Recession Edition Unfortunately, such tumbling curls are only to be had for a price – $250 to $350. That’s too expensive for me right now.

I decided to put off the digital perm given that I have many uncertainties looming in my life:  job and the whole recession doom and gloom, expenses for a possible new business, a new apartment with increased rent, the need to save for retirement (or else be reduced to a life of penury in my old age), etc.

A gorgeous head of hair is lovely, but I’m not sure it’s so important that I need to get it done right this moment. So, as many others have done, I’m putting off the “big-ticket” items in these uncertain times. My hair budget has definitely decreased along with the with the economic recession.

Have you decided to trade down on haircuts / treatments and or products because of the recession? Did your hair budget decrease from what it was in 2007 or 2008?

If I have any hairstylist readers out there, how are you faring?

image source: abcnews.com

Recession Fatigue

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Not just any run-of-the-mill fatigue – I think I’ve got a case of Recession Fatigue.

Some symptoms / realizations:

  • It’s a marathon, not a sprint. I’ve decided to spend more money rather than saving all my dollars for emergency fund. Did that for several months, then realized that the end of the recession is very far off. I am much happier and much more able to keep a consistent level of savings when I’m not going for broke (figuratively speaking) every month.
  • News have become depressingly similar. The bad news is bad. The good news is only good because it’s not as bad as people expected. Talk about the power of low expectations.
  • Feeling surprisingly sanguine about the whole economy and the job market (although I realize that as a single young person, it’s much easier for me to say that than if I were a parent with dependents). If I lose my job, I will adjust. I will survive. I’ll do better than survive.

Do you have recession fatigue? What are your symptoms?

Is frugality a trend? And will it stick?

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Frugality is the new trendy?

Reading articles on declining consumer spending and increasing saving rates (and watching new words such recessionista, frugalista, and cheap-chic enter the lexicon) has made me wonder: has frugality gotten too trendy? And, will it stick?

Frugality isn’t an issue I write on, because I’ve never claimed to be frugal – I try to save and invest, yes, but I certainly have my moments. Exhibit A: $200 worth of wool gabardine from J.Crew today (if you follow me on Twitter, you would’ve seen step-by-step how the consumer pummeled the pf blogger in me.)

As an example of some recent coverage of the new return to thrift, Friday’s New York Times article is titled: “In an Age of Austerity, the Miserly Thrive”

I cringed a little at the word “miserly”. A miserly person is someone who’s cheapness is inconsiderate and inconvenient to others. Miserliness is not a quality to aspire to in any economic situation. But I see how the title “In an Age of Austerity, the Financially Responsible Thrive” might not have the same ring to it.

Then NYT used this example of an enterprising nurse who took home a duvet off the street.

“My behavior has become less strange and more of a resource,” said Katy Wolk-Stanley, 41, a nurse in Portland, Ore. A practicing penny-pincher for the last decade, she is now spreading her gospel. Last May, she started a blog with tips and tactics for cutting back called The Non-Consumer Advocate.

She knows whereof she blogs. She darns socks, dries clothes on a line she recently hung inside her house (even though it takes a few days for the clothes to dry inside), washes and reuses plastic bags and takes used clothes and furniture people leave on the street — like the slightly torn Garnet Hill duvet cover she found recently.

“It was wet, and covered with dog hair,” she said. “I washed it really well a couple of times and mended it.” Her quest for money-saving ideas “is very energizing,” she says. “You see opportunities everywhere.”

I’m glad she was handy enough to take the duvet (it’s also great for the environment – one less duvet in the landfills). But I’d feel uncomfortable using a duvet I found off the street, “wet and covered with dog hairs.” The ick factor would be too great for me to overcome (curiously, I have no problem buying clothes from thrift stores). I’ll settle for my duvet set from IKEA (bought it during one of their one-day sales for $20).

I guess this confirms what I already know: I’m just not that frugal, I like my creature comforts, and I’m willing to pay for them (although I am willing to pay LESS for them in this uncertain economic climate).

Will Frugality Stick?

As far as will frugality stick? People will always want things (or experiences). That requires money. Real estate in desirable areas such as San Francisco, Manhattan, and Los Angeles will always be pricey. Conspicuous consumption has gone out of style – for now – but who knows?

In 10 or 20 years, if things are good again or we have another bubble – will New York Times be writing about fishing discarded bedding off the streets and washing plastic bags? Will a consultant skip her $4 morning latte at Starbucks? Will the middle-class professional woman be so eager to disclose that she got her holiday dress at Goodwill instead of Neiman Marcus? Will she even go to Goodwill?

As deep and as hurtful as The Great Recession is, can it truly, permanently reprogram us as a culture of frugality? I’m hesitant to say yes. We had a huge, wild party that went too long. Now comes the hangover and the recriminations. But after a while, after we feel a little better, after we promise to never let things get so out of control, we’ll raise a glass (or two, or three) again.

Answer: My one-woman stimulus bill

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Question: What is dining out?

Thanks to the economic downturn, many high-end restaurants have been offering great deals. And as much as I am trying to save money, I have also been heartily enjoying the “recession specials” at high-end restaurants.

Several weeks ago I ate at a Japanese place that would normally be stretching my budget. Instead, I got a 3-course meal for $33 including tax & 20% tip. Best sea bass I’ve had in years. YEARS. I still think of it fondly.

Next week I’m going to a swanky French restaurant where I estimate $28 for 3-course meal including tax & tip. Then the week after I’m going to a trendy lounge / restaurant where I can indulge for 50% off the regular prices (probably around ~$30-$35).

I am so excited.

If you are a gourmand and you have some discretionary income (and you can’t get away for long to take advantage of those awesome travel deals), go to a nice restaurant. You will be doing something good for the economy, and treating yourself to deliciousness that would cost far more in better times.

Let’s eat our ways to prosperity!

Business Insurance Experts Premierline Direct

Friday is in sight!

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Which means the Freedom Fund will get another cash injection (or an additional buffer between job loss and the streets Mom & Dad’s).

Recently, the recession has hit home when one of my relatives lost her job at a tech company. She is poised to weather the layoff well (she received a good severance, her husband has a well-paid job, and they own a couple of different properties), but the news is still disconcerting.

Many newspapers are touting the need to bulk up one’s emergency fund, but how much can you really save with only a few months’ notice? It has taken me more than a year and a half to save my emergency cash.

What I’ve learned from everything that’s going on around me is that in good times, I need to prepare for the not-so-good times. In this economy, it seems that nothing is guaranteed. I’ve read account after account of laid off bankers, consultants, marketing managers, engineers, IT workers (not to mention the scores of auto worker) who made good salaries but are now having trouble finding work after several months of searching.

I’ve been a saver mostly because of Mom’s influence – she has taught me through words and actions that saving for a rainy day is important. Living through my first recession as a working adult (a recession that may be the stormiest of a generation) has made the lesson just that much sharper.

So come Friday, I’m going to take my paycheck, pay my rent, and put everything else into the Freedom Fund. $30,000, here I come.

***Okay, having said all that above – as long as I still have a job, I’m going to keep eating out. Not every night at a $50 a plate restaurant – but, to give up dining out entirely? No can do.

Remembering the good stuff in times of the bad stuff

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I have to admit I’ve been feeding into the frenzy as well. As an information/news junkie, I must know where the Dow closes. And the difference between a Tier 1 Ratio and a TCE ratio. And why banks are actually in MORE trouble according to the conservative TCE.

All this news-mongering must’ve gotten to me, because, last night? I had a dream that I was laid off. What’s the worst that can happen? According to WSJ, really really bad things. (Think alcoholism and sleeping on the train tracks). SP is right… all this economic doom & gloom is EXHAUSTING.

So this post is dedicated to all the good stuff that’s happening in my life despite the economy:

1. My aunt & uncle (who live overseas) will be visting in a month. I am very excited, as I haven’t seem them for two years.

2. My mom may consider buying a condo at the end of 2009, which means I can tag along on house-hunting trips. When I was younger and my parents were looking for our first house, open-house-viewing was THE weekend highlight for the whole family. Come to think of it, that’s probably how Mom saved enough money to buy real estate – subbing open-house watching for family vacations.

3. CB and I are doing well. I finally got the perfume he bought me for our anniversary, and now I greet every day with a spritz of Marc Jacobs.

4. Not sure how this categorizes as “good news”, but I haven’t filed my taxes yet. Hmm… I guess the good news is that I still have time to file. Woohoo!

5. I am surrounded by good, great, and so-delicious-I-think-about-it-all-day food. In the past week, I’ve discovered a Japanese fusion restaurant with a delicious sea bass dish and a Thai restaurant with the silkiest, coconutty-ist curry I’ve ever had. And speaking of the diversity of deliciousness around me, I can get Ethiopian on Monday, Japanese on Tuesday, Chinese on Wednesday, Thai on Thursday, Mexican on Friday, French on Saturday, and Italian on Sunday. (That still leaves Vietnamese, Indian, Cuban, and many, many more). Oh, and let’s not forget the great Californian classic. My taste buds are spoiled.

What are 5 good things that’s going on in your life?

Doom, gloom, BOOM! (or, am I being too negative?)

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That, ladies and gentlemen, is the sound of world economy falling off a cliff.

See what I mean about being too negative? Even though (I think) I am in pretty good shape to weather the storm, I find it difficult to be upbeat and optimistic about this whole situation. Ever since I was young, I never want to be someone who never saw it coming (whatever bad thing “it” might be) and be completely psychologically beaten down. But I’m afraid that in trying to be realistic, I have overcompensated and fallen off the cliff into the abyss.

But how can I not, when every headline I read is saying, in essence, “How bad will it get? Worse than you think?”. So if things are worse than I think, I might adjust my thinking to a “worse” case scenario to reflect reality, but then it just turns into a vicious cycle where things are NEVER as good as I think they might eventually be, which means that no matter how bad I think things will be, the truth, when it comes, will be even uglier than the ugliest scenarios I can foresee.

It doesn’t help that:

a) I am an absolute news junkie. I read the WSJ, New York Times, The Economist, and CNN Money every, single, day. On the way to work, I listen to Market Place on NPR. (Of course, I also have a plethora of personal finance blogs that I frequent). On any given day, I know the Dow and I know the layoff count. All this news-reading is very informative, and I’m being informed that well, there ARE no good news out there.

b) I keep an ear out for layoff news from my circle of fellow young professionals (financial analysts, consultants, accountants, PR people, etc). Many of the Big Four accounting firms have already had 3-4 rounds of layoffs. Law firms are cutting attorneys. Hiring everywhere is contracting. Most people I know who were laid off have not been able to find a comparable job. Oh, and you know how health care and education are supposed to be “recession-resistant?” Well, my mom works at a hospital, and she said that even they have cut back on per diem (temporary) nurses.

So I think things are pretty bad.

BUT – what if my thinking is too optimistic? Then obviously it’s even worse than I think. Maybe the job market won’t improve until 2014. Maybe it will be a jobless recovery. Maybe I will lose my job, go to grad school, graduate with debt, and can’t find a job. And become the weird, unaccomplished (also unmarried) cousin at family gatherings…

I do think (hope?) that things will start to get better in 2011 and beyond. I know I am an ultimately optimistic person, because the very act of PUTTING MY MONEY into deteriorating markets imply that I believe, one day, the economy will recover. So perhaps, depsite all the doom and gloom, I am a total optimist.

Oy.

"There's no great loss without some small gain"

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That’s what Ma always said in The Little House series.

Example:

  • Great loss = blackbirds destroyed Pa’s corn crop and made Pa sell a calf to fund Mary’s college tuition.
  • Small gain = delicious blackbird pie with fresh young vegetables (no use in saving them ’cause the blackbirds will get it all).

I haven’t gotten to the great loss (yet? knock on wood): a layoff, which would be the greatest great loss, as it would be for most others.

If I were to lose my job, the small gain(s) would be 1. opportunity to take risks (one of my mentors say that when you’re unemployed, your opportunity cost is the lowest), and 2. time to travel abroad for an extended period.

What would you say the “great loss” and the “small gain” would be for you personally in this economic meltdown?

Also, what book did the blackbird scenario come from? No material prizes, but you get the satisfaction of being a Little House Trivia Expert! icon smile "There's no great loss without some small gain"

Person vs. people

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Pay day was Friday, which that made Freedom Fund reach $28,500. I also went out to eat a couple of times because a friend was in town, but overall, I’m spending way less in the dining out department compared to a few months ago (which, granted, was the holiday season).

If I felt more secure about the job situation or the economic news wasn’t so doom and gloom all the time, I’d TOTALLY spend more. Totally. But like so many others, I am now watching every dollar.

Isn’t it funny how something that’s great for the individual (saving money) can be so bad for the economy if everyone starts doing it? Lack of consumer spending = lack of business spending = economic activity kaput.

In the long-run, all this saving will be great because it’ll turn into investments in the economy, but in the short-run?

It’s a painful adjustment.

Just how excited am I to get my paycheck?

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VERY. Very excited.

This Friday is pay day. I’m going to take that bad boy and dump it in my Freedom Fund so that if I am caught up in this imploding economy, my head won’t explode.

And as a note of my nerd-ism, I spent 40 minutes last night scrap-booking FINANCIAL NEWS in my personal journal.

That way, in 20 years, not only will I be able to recall the ups and downs of my relationship and the daily question of “how do I find a job I love?”, I will also be able to read, in exquisite detail, Fortune and WSJ coverage of this whole economic mess.

Nerd, I am.

Me vs. the market: Do I know what I'm doing?

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One reader, CD, left this comment on my previous post on the market:

Hey smart alec,

Stay away from stocks, funds, bonds, unlesss you know what you are doing. In the sense spending at least 20 hours/week on investing and constantly monitoring the markets.

Otherwise, this is not your ordinary market, and believe me it will suck your money out of your little purse, faster than you would think. icon smile Me vs. the market: Do I know what I'm doing?

Sell every freaking fund and put them into money market account, preferably a t-bill only.

Having said that if you still would like to go long and invest, here is my advice for you:

- Never ever buy a single stock, especially nowadays. It is simply too risky.

- Always be a trend investor on indexes. Think about what will happen in the next two to six months. For instance, bank stocks may go up a little due to more “free” money thrown at them.

- Understand put/call options and how they work. How you can utilize them to set your selling and buying points.

- Understand the bond market. It is ten times larger than the stock market and usually a good indicator of the overall economy.

- Watch CNBC, Bloomberg, even Cramer. But never ever buy or sell based on their advice. They are always providing you what is already priced into the market and usually do not give you the full picture.

Good luck.

I disagreed with certain points of this comment, namely, that I would need to spend 20 hours a week monitoring the market before I put money in stocks or funds. However, CD’s words gave me a lot of food for thought… in that, do I really know what I’m doing?

I have an understanding of general macroeconomic conditions and the workings of stocks and bonds. I also have an academic knowledge of calls and puts, but I certainly don’t’ follow the market as closely as CD suggests, nor do I engage in call or put options.

So, given all of the above, am I ready to invest in this market?

I think so.

There are two types of investors that should do well:

  1. Investors who can sucessfully market-time over long periods of time (and there ARE those who can do this), or
  2. Investors who acknowledge that they do not have the skills to select high-performing stocks or funds consistently, over the long-term, and instead engage in a buy-and-hold / index strategy.

I think some of CD’s advice works for Investor Type #1. I, however, am Investor Type #2. I am a buy-and-holder. I DON’T have 20 hours a week to study the markets. And even if I did, I don’t think I can select the winners, year in, year out. This means that I am content with market returns.

So, I invest in index funds with very low expenses, and I intend to hold these funds for a VERY long time. My time horizon is 40+ years, so I think it IS okay (in fact, it might be beneficial) not to follow the market every single day (even though I do, though I never act on it). I don’t want to be an emotional investor.

This market has scared me, because I AM afraid that “this time it’s different,” that all the things we’ve learned from the past no longer holds true. This is my first real bear market, and it’s not fun watching my “little purse” shrink even further.

But to sell everything and put all my money into T-bills would be a reaction motivated by FEAR – and truth be told, I am just NOT that afraid right now. It might be naivete, or the lack of responsiblity for anyone but myself, but I’m feeling okay about the current market right now. (I probably won’t be if the Dow is still at 8,000 in ten years… but for now? I’m good).

And my purse might be little now, but I believe that with a diversified portfolio and consistent savings (and a couple pieces of cash-flow positive real estate holdings in the future), I will have a good chance of achieving my financial goals. I might be petite, but don’t be fooled – one day, I’m going to carry a big purse.

Shares, not dollars

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Shares, not dollars: this is my way mantra to cope with Mr. Market’s relentless assault on my retirement portfolio.

Looking at the value of my retirement holdings is an exercise in self-inflicted pain. I don’t plan to decrease my investments OR to adjust my overall fairly aggressive asset allocation, but that doesn’t mean I don’t grimace a little over a 30% drop in the value of my contributions.

But – if I just change my perspective a bit, and turn my focus from dollars to number of shares, this downturn has been great! I’m picking up shares at all kinds of discounts. At the beginning of 2008, $5,000 bought maybe ~170 shares in my funds. Now, $5,000 can buy ~240 shares. 170 vs. 240 = HUGE difference.

The expectation, of course, is that these shares will (over the long run) grow in value. Capitalism is the essential exercise in optimism – the optimism that things will keep getting better, that productivity will increase, that people will prosper. That’s why I buy into America (literally, I buy America – well, the U.S. market index, anyway).

Of course, shares can lose most -or all- of its value (exhibits A, B, and C). But I don’t hold any individual stocks. In addition to the U.S. market index, I hold an international index and a bond index.

So, if my shares become worthless, the world has probably gone to hell in a hand basket. At that point, retirement will be the least of my worries. I’ll probably be foraging for berries and hunting small rodents for sustenance.

The economy's twisted sense of humor

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There are so many fantastic things on sale right now. I see J. Crew outfits on sale for 50%-60% off, I see Mexican and Carribean cruises marked to less than $80/day, I see restaurants with great fixed price menus. Disney World is having a sale where you get 3 free days when you purchase 4 days. In short, right now is a really good time to consume.

But, alas, I feel so uncomfortable handling large cash outlays right now, given Dow’s recent performance (7,500?!?!) and the general air of gloominess about the economy (newest villan: deflation). So all these great deals are happening all around us, but I, like many consumers, are too worried to take advantage of them. Oh, the irony.

Also, I’ve been seriously considering moving back home if I were to be laid off. As far as I can tell, I’m okay on that front, but in this economy I’m not assuming anything.

Before, I had said that I’d want to stick it out for as long as possible before I move home. But after hearing all these reports of people job-hunting for months on end, I think the more prudent action would be to cut my costs as dramatically as possible, as soon as possible. (If I move home, my monthly costs would drop to $700-$800). So my plan has changed. Instead of waiting ’til I’m at 6 months without a job before I move home, I’ll probably shorten the time to two months. Let’s hope I won’t have to actually put my plan into action.

P.S. I just re-read my post, and I realize how lucky I am, even in the midst of this economic uncertainty. I am lucky that I am young and well-educated. I am lucky that my jobs enabled me to save a relatively robust emergency fund. I am lucky that I have parents who live nearby. I am lucky that I don’t have a mortgage or children. I am lucky that the only person I have to take care of, right now, is me (and even then I will have the support of family if I need it).

My opportunity cost is so low compared to what it would be at any point later in my life. If I’ve got to face the “biggest financial crisis since the Great Depression”, this might be the best time for me to face it.

Rough economy = cheaper hair cut & much, much more

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I have this hair stylist, “Don”, that I love. My hair gets the most compliments whenever he does it. Unfortunately, he is an hour’s drive away and charges $50/haircut. Add in the tip, and I’m at $60. I had planned to go to Don this month, but finally decided not to.

Part of the reason was the drive, but part of the reason is the feeling that it’s no longer prudent to spend $60 on a haircut. So I went to a less expensive place that cost $20 including tip. The haircut turned out well and I’m happy with it, but there is a difference between the $60 cut and the $20 cut (as there should be). So, I guess I’m just one incidence of the phenomenon illustrated by these NPR stories about the beauty industry and the downturn.

There are also signs of the slowdown every where I went:

  • At salon I went to, the owner said traffic was very slow. “It’s a recession, they just don’t want to say it publicly,” she insisted.
  • CB and I went to a casual sit-down restaurant (I won a $30 gift card in a raffle), and usually we’d have to wait for 30-40 minutes at that location. But we were seated right away.
  • A friend who works at McDonald’s said that more people are, er, displeased that Micky D’s is charging 25 cents for extra condiments and sauces. Apparently, one customer made his displeasure known by chucking his milkshake at the drive-through window.
  • I know or know of several people who have been laid off from positions in consulting, finance, wealth management, media, and accounting. In many cases, the entire department was eliminated.

What are some signs of the downturn that you have witnessed? Did you trade down to a more inexpensive salon / beauty treatments because of the economy?

Please, Buy Something!

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Since I started my clothing/accessories/shoes hiatus in September that I promised to see through to the end of this year, I have broken it just once, by spending $5 on a tortoise shell necklace at a flea market.

From a personal finance, individual perspective, that’s great. But apparently, people like me are contributing to the RUIN of the economy. We now wear the sad title of American consumers who no longer consumes. (Actually, on second thought, I just contributed $500+ to the car repair industry – and to a locally-owned business to boot!)

So I think this is a time when, if you have the discretionary cash and you decide to purchase something – big OR small, you can feel truly great for helping the economy. If you are in the market for something there are GREAT deals to be had – retail, travel, hotels, cars, furniture, home improvement, etc. etc. etc.

So, all this talk about the rich should not spend because of the negative perception it creates? Rubbish! If you have the means to, go on and buy… it’ll help us all.

Emergencyopoly! Want to play?

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Have you heard? Consumer confidence is down. Foreclosures continue to rise. The whole de-leveraging process is a giant hangover from the debt-fueled excesses of a few years past.

To combat this doom and gloom, I’ve decided to play a little game for the month of November, and I invite all my readers to join in. The game is called: Emergencyopoly!

The rules of the games are simple:

1. For one month, live the lifestyle that you would live if you were to lose your income (for most of us, this would mean our job. For small business owners, it could mean months where you’re in the red and cannot afford to pay yourself.)

2. Approximate to your best abilities any additional expenses you expect to incur as a result of the income loss
- For example, I have great health care through work. If I lose my job, however, I’d have to spend an extra $50-$100 a month buying individual health insurance. This expense is expected and thus must be taken into account.

3. Concentrate on the core expenses (rent, food, utilities, car payment, etc.)
- If you spend $500 every year flying home to Thanksgiving, there’s no reason that you’d have to forgo that for Emergencyopoly (your family might not understand your dedication). Just focus on the core costs that you have to pay month in, month out.

4. Take the money that you don’t have to spend right now because you still have income and funnel it your emergency fund.
- In my case, I should be able to save an additional $225 (individual health insurance and job search expenses) to my Freedom Fund

So I’ve narrowed down my core expenses
Rent + Utilities/DSL: $810
Car Insurance: $105
Student Loan: $160
Gas / Parking: $155
Health Insurance: $125
Food: $125
Job Search-Related expenses: $100
Personal/Misc: $70
————————
Total: $1,650

Take out the health insurance and job search expenses, and I’m down to $1,425.

That’s my goal for Emergencyopoly: to come under budget for every, single, category for the month of November.

Looking at this scenario, I am slightly (but only slightly) comforted by the fact that if I really want to ensure that my cash lasts as long as possible, the quickest way to reduce my burn rate is to move back home. But I’m going to wait until push comes to shove (6 months without a job?) before I make that move.

I think this game will help me figure out how many months my savings can realistically take me.

So, who wants to play? icon smile Emergencyopoly! Want to play?

Is now a good time to buy?

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The market has had a brutal stretch, and there’s no guarantee that things won’t get worse before they get better.

BUT – there are many companies with strong balance sheets and cash flows that have fallen dramatically in value as investors shun equities and corporate bonds to flee to the safety of Treasuries, even with the bounce-back of Dow’s 900+ point rally today. Wall Street, the saying goes, is driven by fear and greed. Now, the fear has taken over. By historical standards, many companies are cheap. So, is now a good time to buy?

If I were to buy equities right now, I’d be either (1) buying an index fund through a taxable account (mostly likely Vanguard’s Total Stock Market Index Fund), or (2) buying some select companies for long-term investment (Procter & Gamble, Newell Rubbermaid, etc.) also through a taxable account. I’m looking at consumer staples that have smaller exposure to the credit crisis (though it affects everyone) and pay a good dividend.

So, I haven’t decided what to do yet. Chasing a false bottom is a real danger and any money I put into the stock market right now I’m expecting not to touch for at least 15 years. Can I afford this loss of liquidity if I were to be laid off in this dismal job market? If I decide to invest in individual stocks, I’ll also have to research the best discount online brokers to use, and draft an investing plan to make sure that I don’t let my emotions (fear OR greed) take over.

Maybe I will just wait until January, when I can begin funding the 2009 Roth IRA.

*** Please note that I am NOT a financial expert / stock analyst and PLEASE do not make your decisions to buy, sell, or hold equities based on anything in this blog.

The market giveth, and the market taketh away

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The market giveth, and the market taketh away

Except right now, it seems to be ALL take, and no give.

I am worried. The worst is yet to come, especially in the job market because unemployment rate is a lagging indicator.