In the past few months we have heard nothing but bad news from the radio and new channels. We tend to wonder:

“When will this get better?”

We are facing a national recession and a global recession with no signs of recovery. We are faced with the greatest housing depression ever and are now about to break records for unemployment. Can it get worst?

Many believe that the small jump we recently experienced in home sales of 6% is an indication that the market had hit rock bottom and recovery is well underway. Unfortunately, that is not the case, the home market is directly linked to the employment rate coupled with the accessibility of credit. As long as the credit markets remain frozen and the unemployment rate keeps rising, the tragedy will continue. There has however been great indications that the stock market is near bottom and that consumer confidence might be near that bottom as well.

So where will go now…

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Just got off the phone with an old high school friend who asked me a very simple question that I should have written about long ago. What to invest in?

Forex? Stocks? Mutual Funds? Real Estate? Start a business?

In this market, it seems that we are constantly caught by surprise. Markets go up and then crash and then go back up and back down.

The reality is times are changing and as in every recession, markets will re-adjust and cause the guessing game to become much harder. My answer to the question above is quite simple. If you have a lot of extra capital ($10,000+ of absolutely not needed cash) Then invest in any of the above but long term, with a conservative approach.

If you don’t have disposable money, then please take time to SAVE. Savings is an important part of building the foundation of your investments and there is no better time than to do that now. Create a good savings plan, get out of debt, and reinvest in yourself so that you are ready to jump on the right opportunities when the market turns. In the heart of a recession like in the one we are in now, many opportunities arise, some in the forms of investments, and some others in the form of purchases. Cash is king and will always be, so your ability to get in on it, or to purchase is the most powerful position you can take.

Once you have your comfort zone, keep an eye out for that right opportunity.