You know, if we're not careful, this recession can definitely turn into a personal depression and just eat us alive. By now every single one of us has felt the crunch and has had to make adjustments to our budget and our day-to-day spending, and that is as it should be at a time like this. But just as importantly, we MUST keep up our spirits and rejuvenate ourselves along the way in order to avoid the endless worry and stress that could easily take up residence in our homes.
For women, that fix is easy! No matter how things are going on the inside, we can almost always practice a little, ?Look good, Feel good.? Some days, this may be as simple as a new lipstick or a few minutes extra to paint our toes ? and other times, it may mean getting all dolled up just to have coffee at the diner with a few friends. For myself, I decided to budget just 10 extra dollars a week and buy myself one inexpensive, fun, great looking new article of clothing every month. With today's online world, I can save the extras that used to go with this choice ? there's no gas expense, and there aren't any other stores (like in the mall) to lure away my wandering eye! I have $40, and I can truly enjoy spending every single dollar to keep my spirits up and my self confidence squarely in place.
You may be asking yourself, ?But what can I buy with only forty dollars?? So I decided to visit my favorite online store for Zoftic, full-figured goddesses like me, and create a few ensembles to assure you that the possibilities are literally endless. (I chose swakdesigns.com for amazing plus size fashions, but you can choose your own online boutique to frequent ? or choose a few to wander around and window shop for a while first.) But whatever you do, DON'T put yourself off until ?next week? or ?next payday? ? as women, we do this FAR too often. We put EVERYONE ahead of us on the list, and quite simply, we never really get around to living the great, appreciative life that we deserve. And truly, this is a disservice to everyone. A rejuvenated spirit is much more empowered to inspire and serve others!
I picked out my first outfit for this virtual fashion show in January. It was a long black plus size skirt, described as neither too dressy nor too casual (and super comfy ? always a plus!). And since it only cost $18.99, I threw in the extra buck and paired it with what they call the ?perfect cami? for $21.99. I then grabbed the free shipping offer and celebrated all week long until my treasures arrived that Friday afternoon ? just in time for that coffee with friends, by the way!
In February, I wanted a beautiful dress to celebrate Valentine's Day with my sweetheart. The ?Cynthia? print plus size dress was exactly what the doctor ordered ? it was an amazingly flatteringly empire-waisted V-neck, in a wildly beautiful red print pattern with ? sleeves. And at only $24.99, it left enough for me to buy a great looking necklace from the accessories collection AND a romantic card for my sweetheart.
My last example is, of course, for March. I have to admit, I haven't quite decided yet. While I love dresses and long skirts, I'm finding myself pretty tempted by the cute Priscilla Capri pants (on sale for $18.99) and there's a black pashmina type wrap that would be a fun, stylish touch with almost everything already in my wardrobe. The point is that no matter what your budget, or what's going on in your life, finding a few dollars to ramp up your spirit (and your bod) is a great investment ? and one you simply can't afford to pass up!
Not In A Recession
Consumers twenty-five credit binge fueled by home equity loans, credit cards arriving in the mail, sub prime and adjustable rate mortgages and automobile leases, appears to be over. Savings rates has plummeted from 14% to 0% (perhaps to a negative number if home values continue to decline). Pile on top of that the banks debt problems, high energy prices, the homebuilding industry's woes, weak retail sales and declining consumer sentiment, it's no wonder that many investors believe a recession is in the offing.
Investors face two challenges right now. If the economy is headed into a recession, where do I put my money? And, if the economy avoids a recession will I be in the right investments? The stock market anticipates the future. It will decline prior to the US entering a recession and it will start going up prior to the end of the recession.
Investors who wait for certainty that a recession has begun will be selling stocks at the worst possible time. The same logic holds true if you wait to buy stocks until after the economic recovery, the market will have already moved higher in anticipation. Human psychology is a future complication. We're most optimistic about the stock market when it's roaring ahead and most inclined to buy; and most pessimistic and most inclined to sell, when it's at its bottom. Of course, our investment strategy should be just the opposite. The moral to this story is that you should invest for the long term and not try to time the market.
If a recession is imminent, the stock market will decline by another 10%. How do you make money? To get technical, buy mutual funds, ETFs and stocks with negative betas or high alphas, such as gold, commodities, real estate and foreign stocks.
Gold and commodities already have had good runs, the US commercial real estate market appears to be weakening and foreign economies are increasingly becoming intertwined with ours. Non-investment grade bonds have good yields but are not the place to be given the continuing bank credit problems. High grade bonds and Treasures have relatively unattractive yields, particularly as you go out in maturity.
The best performing stocks in a recession are likely to be industry leaders, companies with strong overseas sales, consumer staples and health care. The technology sector is solid and internationally focused, so we'll add it to our list. Essentially we're looking at companies whose sales will be strong during a recession. These stocks may not go up in price during a recession but they will perform relatively better than most other equities and are safe investments. The bottom line is it's hard to make money during a recession.
If the Fed is right and we'll see modest economic growth in 2008, the markets are at their lows and could move 20% higher over the next six months. How do you position your investments for this possibility? By staying in the market and buying the same mutual funds, ETFs and stocks as you did for your recession portfolio. The recession portfolio is a conservative portfolio. Although it will miss some of the dramatic gains made by small cap and more violate stocks, it also protects you from the downside of those stocks while enabling you to participate in any stock market rally.
What to do now? Review your long term goals and make sure you've got the right asset mix, take losses (up to $3,000 more than your gains, remembering to match short term gains and losses) to minimize your taxes, reposition your equity investments according to our recession scenario, move your bonds into cash and tighten your seatbelt. We're in for a bumpy ride.
Both Stacy Montgomery & Bill Byrnes are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Stacy Montgomery has sinced written about articles on various topics from Womens Health. Stacy Montgomery, Sales VP for Sealed with a Kiss Designs (SWAK Designs, ) has built her career around her passion, embracing her own unique beauty and. Stacy Montgomery's top article generates over 1000 views. to your Favourites.
Bill Byrnes has sinced written about articles on various topics from Financial Planning, Currency Trading and Financial Planning. Bill Byrnes is co-founder of MUTUALdecision, , providing investors with data on the top mutual funds, and author of the MUTUALdecision Blog. He's bee. Bill Byrnes's top article generates over 6600 views. to your Favourites.
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