The Q3 GDP number came out last week and the GDP was negative by .3%.
.3% wouldn’t seem so bad in normal times, but these times are far from normal. The economy is on very shaky ground and these are uncertain times. Now, Joe, you might tell me, no time is certain, and with that I agree. But the current market volatility is at a record high, and the market itself appears to be coming undone, seemingly due to the derivatives that were to supposed to provide further liquidity and reduce risk.
Now, advisers are suggesting that everyone stop spending, and start to save. But this is actually dangerous advice, how will this quarter’s GDP be impacted should we all just decide to tighten our belts and stop spending. Now is the time to go out and buy. We need to spend our way our of the impending recession we all are dreading.