Since the Declaration of Independence in 1776, there have been 49 economic recessions and depressions.
Soon, we may be confronting our 50th recession.
Like the rest, there will be a beginning and end to this possible, but not absolutely guaranteed, new recession.
So, now is not the time to panic, grow negative, and stop investing. It’s a time to understand the fundamental key which makes American business so unique. Once that occurs, my hope is that you will continue to be aggressive investors.
In America there are five ways to invest:
1. Mom and pop’s way:
These are the salt of the earth people who religiously invest in moderately risked stock and bond portfolios year after year, no matter whether the market is slumping or growing. Over time, the value of these investment overtake the salaries they make as workers.
2. Fat cats:
These are the top executives in America’s large and mid-sized corporations. They make their money by hitting sales targets, allowing them to be paid in corporate stock and cash. They are not known for their creativity, but they do know how to hit their numbers.
3. Garage rats:
These people invest their own money and time in creating new products. They are lone rangers and risk takers, but more importantly, they own what they create. While some don’t make any money, usually if they stick to it, these inventors and entrepreneurs create large amounts of wealth.
4. Safe crackers:
These guys create schemes in order to make fast money. They are the bling, bling crowd. While painted as the bad guys, these folks are also the deal makers. They create markets on anything from betting on the next football game to creating oil contracts between competing ventures.
These folks trust no one. They keep everything in gold and cash. Unless they can touch their money and gold directly, they believe it will be stolen away from them.
The key to America’s enduring and ever growing economy, no matter its ups and downs, is its DIVERSITY.
As noted above, there are a lot of different ways Americans make and invest money. Our culture is built around that unique principle. You will not find that in any other country in the world.
No matter the conditions of your birth, the schools you did or did not go to, the neighbor you came from, your grade point average, etc., there is something for you to succeed at in America’s economy.
Keep pushing hard. Keep bearing down. Continue to be aggressive in the new year.