We think government workers every where should be really nervous. Private industry has been shedding jobs for years and conserving cash, something that the worlds governments have yet to do. If this latest round of market and debt problems gets really bad, the government is going to need to reduce their costs as well. First thing to go will be programs and then the workers that administer those programs. All we can say is try to make sure that you are working on something that will not be cut!
Market Volatility – Dow Tumbles
But back to the issue of the market and the up and down swings we have seen. On Thursday, Sept 22, the Dow tumbled as did many other markets. If you are invested in good quality bonds and stocks, then you are probably ok. Sure you have lost money , but only if you sell. If you sell now you are locking in those losses. Hold on to quality and as long as you have time, the market is likely to bounce back! Too many people are panicking and selling low and locking in the losses that are now in the market.
Conserve Cash
The US Government and the Canadian Government have issued stark warnings about what is to come if we do not get our collective acts together. Our own thoughts about our personal situation is to conserve cash as much as possible, avoid large purchases and keep working even if it is a job you do not like. Once the markets improve, the economy improves etc, you can think about changing jobs or making that large purchase. If you have a good quality portfolio of investments, hold onto them. They will come back just like they did after the 2008 market fall.
One last thought is to make sure you are diversified. This means in your investments as well as your professional life. Spouses should work for different companies, in your job you should be willing to take on everything and anything and always be available to support your team. This is not a time for strikes, labor disruptions or being difficult to work with. There are too many people looking for work and more than willing to take your place.
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