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One of my very favorite money blogs is Get Rich Slowly. Today an article was posted by J.D. about the Great Depression and the current depression. The point made below about risk tolerance is so true. The article refers to a speech made by John Mitchell which stated:
“When there are only 16 months of recession in 25 years what assumptions do you make?” he asked the audience. People become accustomed to unending growth. Their risk tolerances relax. They make choices that don’t mesh with history because the only history they see is recent history. Now risk tolerances are swinging the other way. People are panicking because again they’re only looking at recent history.
The main point of the article is to create your own personal economy. You do this by establishing your own personal financial goals and educating yourself about investing. Follow the link below to read the entire article and consider The Financial Woman’s Investing 101 course to fulfill the educational component.