MONEY MATTERS

A global recession means lower earnings for most businesses and industries. Many of them, exporters and those dependent on exports, may even suffer losses. This has happened earlier during the last recession in 2000. But this came to an end around May 2003, today is just a replay. Everybody from car salesmen to shopping malls is offering discounts. We are also seeing salary and job cuts and even if you are securely employed, your next increment may not be as good as last year’s.

Warren Buffet, the world’s most famous investor says, “bad news is an investor’s best friend.” He says that because any recession has to come to an end, though nobody can tell for sure when that will happen. Today to decrease the impact of the recession, governments across the world are taking steps like never before with interest-rate fixes and “bailouts” for failed banks and other key businesses.

As individuals, there is little you can do to control any economic slowdown or global recession. But you can indeed control your own affairs; especially in the way you spend, save and invest your savings. This is the time to act and be positive. There have been several slowdowns, and there is nothing abnormal about these ups and downs. The reports scare you but pick up any newspapers from 2002 and you’ll read the same kind of stories. Yet you have seen the best of times after that. Without downturns like these, you can’t make really good profits.

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