One of the wonderous things about a recession like the one we've been going through is that, if you manage to keep your job without getting a paycut or losing your benefits or whatever, lots of things have become pretty cheap.
With everyone holding on tightly to their purse strings, the mall is a veritable buyers paradise. Prices are slashed. If you buy one, you almost definitely get another one free or for half price. It's amazing. Of course, the irony is that this only happens when we seem to have less to spend.
Nowadays, it's more than just clothes and accessories that are on sale... there are some pretty big ticket items going for bargain prices right now. Namely, houses and stocks.
Houses have never been cheaper and, if you're a first time homeowner, Uncle Sam will give you an extra $8,000 to get you started -- pretty amazing. It makes me wonder, is it time to make that move? Should I scrimp together a down payment somehow just to get the deal? After watching so many people get burned, it's hard to get up the nerve to dive in after them... especially considering I'm not convinced that I could actually find a house I want to stay in for at least five years for a price I'm comfortable with... despite the favorable market conditions. For me, I think I'm going to wait until I can make a bigger down payment.
Stocks are another story. After being battered for over a year, things are finally looking up on Wall Street and I'm convinced that the time to jump back in is here. I'm trying to divert what I can to my stock portfolio, promising myself that I won't freak out if there's another pull back. The market fluctuates and I know I'm investing for the long haul.
The difference between buying a house and investing? I can invest in the stock market for just a few hundred dollars a month and I can stop anytime I feel like I need to shore up my regular savings or if I need to make an emergency purchase. A mortgage, on the other hand, is a commitment.... I can't just call my bank one day and ask them to let me off the hook for a few months. So, for my money (yes, pun intended), I'm hoping to jump start my own recovery in the stock market... and maybe use my fabulous returns to buy a house later.
What about you? Do you think we're seeing the beginning of a better economy? Are you ready to start investing again?