A Solid Economic Foundation To Weather The Storm

Given the very real challenges around the world, we can probably expect more damage to the markets. What we likely won’t see is continued economic damage or a U.S. economic crisis. The very factors that are battering the markets are, in large part, positive for the real economy.

In 2008, the real economy was broken, with consumers borrowing money they did not have to buy assets they could not afford at prices that made no sense. Today, we have jobs, savings, and rational prices in the real economy. A downward adjustment in financial values won’t change that, and that same solid foundation will eventually allow the market to recover as well.

Brad McMillan is the chief investment officer at Commonwealth Financial Network, the nation’s largest privately held independent broker/dealer-RIA. He is the primary spokesperson for Commonwealth’s investment divisions. This post originally appeared on The Independent Market Observer, a daily blog authored by Brad McMillan.

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