It’s too early to tell, and I don’t want to jump the gun the way that the media jumped the gun about saying we’re in a recession. They love to play off of our fears, and they rarely have anything POSITIVE to report. Here are a few things that are going on which show traces of improvement in the economy and the private sector itself.
- The oil price is declining. It’s down to $119 a barrel after it hit an all-time high of $150 a barrel. I wrote a post a few weeks ago that $4.00 a gallon for gasoline was the tipping point. It was the point where Americans started cutting back on consumption, and market forces took effect. You’re now seeing those market forces bring down the price of oil back down.
- Established companies are showing steady profits. Cisco, the IT giant posted nice profits for the 2nd quarter, and other fortune 500’s are expected to follow.
- The dollar is starting to strengthen again.
- The price of commodities and precious metals is declining. Commodities and precious metals have an inverse relationship to the health of the economy and the stock market. When it’s doing bad, gold goes up, when it’s showing signs of growth, gold prices go down.
So, buck up champ! The economy isn’t as bad as you think it is! Stop dwelling about how hard it is to pay for gas and food, and start spending your time thinking about ways to increase your income, save money in your budget, and save for the future.