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In the pause: More data on our national economy

As a follow-up to my post a few days ago (Leading Economic Indicators We All Need to Watch), I had a conversation with one of my former business professors. I wanted to get his perspective on my concerns and about the economy to see if there were other indicators I should be watching. He mentions a few here and details some of his very real concerns as well. He is someone who constantly watches the global and national economy, as well as the stock market, so I trust his advice, guidance, and thoughtfulness. I hope this is helpful to you as well.

“Christa:

Nice to hear from you!

Like you, I’m feeling a bit uneasy about the stock market right now. Very high P/E multiples. To justify those prices will take an extraordinary breakout of growth in the US (and world) economy. The saving grace is that the financial industry still looks fairly stable—bigger capital bases than in 2007, more conservative lending, etc. If there is a downturn in the next year or so, I don’t think it will have the force of 2008. But still, a downturn is a downturn and something to be prepared for.

Your blog post offers some very good advice. I encourage people to keep 12-18 months’ worth of living expenses in fairly safe and secure investments. And I remind them of the old adage that there are two ways to be rich: one is to have a lot of money; and the other is to have simple needs. Avoid running up debt balances (except for education and a home mortgage). And the most important asset one has is between one’s ears: keep learning so as to stay valuable to your employer—that’s the best defense against a layoff.

Hope these comments help.

Be well.”

 

About Christa Avampato

I make a living in business and I make a life as a writer, artist, and yogi. I use my business and storytelling skills to build a better world. My first novel, Emerson Page and Where the Light Enters, will be published in the Fall of 2017 by Thumbkin Prints, a children's and YA imprint of Possibilities Publishing Co. My creative career has stretched across Capitol Hill, Broadway theatre, education, nonprofit fundraising, health and wellness, and Fortune 500 companies in retail, media, and financial services. In every experience, I have used my sense of and respect for elegant design to develop meaningful products, services, program, and events to help people live happier, healthier lives. A recovering multi-tasker, I am a proud alum of UPenn (BA) and the Darden School at UVA (MBA). When not in front of my Mac, I’m on my yoga mat, walking my rescue dog, Phineas, traveling with a purpose, or practicing the high-art of people watching. I am proud to New York City my home, and I've been called the happiest New Yorker by friends and strangers alike. They're right. Follow my adventures on Twitter at https://twitter.com/christanyc and Instagram at https://instagram.com/christarosenyc.

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