Filed under: Reactive Thoughts

We are Nowhere Near the Bottom

The 2020 Recession has barely begun — unfortunately

Image by geralt from Pixabay

You really have to forgive those who are trying to be positive, saying the worst is over with this economic mess most of us are facing. It’s a lot easier if you kept your job of course, or were already financially “stable” prior — but reality will smack us in the face soon enough in the coming months.

We have to get it out of our heads that the stock market is a useful indicator of how the overall economy is doing. We know there’s a disconnect because generally wealthier people are the ones dealing with stocks and bonds (i.e., “Investment income”), but I’ve already made the case that we had a weak economy before COVID-19 hit — even though the stock market was on a bull run for over a decade.

Market crashes like the ones we saw in March are just a warning sign to the rest of us that shit’s about to get real — likely with significant economic problems still ahead for the economy.

Image by Clker-Free-Vector-Images from Pixabay

Kind of like when the water suddenly recedes from the shoreline before a tsunami hits.