Are We headed for a Depression?

NOT!

If you watch and listen to the media hype they will give you all of the data they have mined out of the negative statistics they can find and show you how we are headed for the second great depression. I have done my own research and have found the real truth about what is currently the state of affairs with the markets.

Lets take a look at then versus now.

First of all lets take a look at the GDP or the amount of products produced and how much it is up or down. During the depression the GDP was down an average of 27%, currently we are up .5% thats a big difference if we are headed for a depression. Hmmmm.

Second wholesale production during the depression down 52% currently we are down 2% thats a big difference if we are headed for a depression. Hmmmm.

Third unemployment a big factor in the economy infact probably the largest influencer of spending in the economy during the depression was 37% that was during the time when the largest employers were manufacturers. Currently our unemploynment is 7.2% in a mostly service economy. Another big disparity versus the depression. Hmmmm.

Fourth factor the CPI or Consumer price index during the depression was -27% currently we are at a plus 4%. Wow big difference huh. Hmmmm.

Fifth factor, bank failures during the depression 44% currently we haven't had any because there are systems in place protecting us from bank failures which were instituted because of the Great Depression.

Sixth Factor, how about US Exports. During the depression we were at -66% Currently we are at + 15%.

The fact is that The Great Depression taught us how to deal with down economic markets and how to improve them and there are systems in place to hold up the market. So the real issue is how to deal with the psychological side of the down market because if you can deal with that then you can stomach the ups and downs the market throws at us. It is for this reason that the market is unpredictable and we can't control it that I have chosen to coach clients through these times so that they can reap the rewards that the market will pay back. We should look at times like this as prepaying for the lobster dinner that we are about to consume, and be happy about that.

If you are interested in more information on how I work and how I can help you through these tough psychological markets you can call me at 610-977-2422 or email me at roy@yourwealthadvocate.com.

You can always visit my website at yourwealthadvocate.com for the latest videos and information concerning the market.