Friday, February 01, 2008

Investors, Recession Really Isn't All That Bad

Donald Luskin - Smart Money enlightens us on the implication of if we are having a recession. The chart below shows that even if we are in a recession, this isn't necessarily bad for stocks.

The point here is not whether or not we are or aren't in a recession - the point is that it doesn't matter. If we knew we were in a recession right this minute how should one change there investments? The answer is that you shouldn't as long as you are diversified and have a long time horizon.

Scott Dauenhauer, CFP, MSFP, AIF