Ups and downs

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There have been some important improvements in the U.S.economy recently. The unemployment rate fell to 5%, the dollar strengthened, consumers put more into the economy than expected, overall growth was still in positive territory for the first quarter, oil has dropped a bit in price and commodities (food, energy) have been falling in price. Inflation may have slowed down due to the above and we are still not yet in an official recession. Many experts predict we are out of the housing mess by early next year.
As usual, the market anticipates these changes well in advance and stocks have been going up, erratically, but nonetheless up. Of course, all of this is only a temporary direction. Nothing ever remains constant except the constant ups and downs. Dooms day is still a good ways off in the future. Hopefully the distant future. Despite all the evidence pointing to an doomsday; over population, global climate change, the end of cheap energy supplies and continuing risky financial situations, we are still here riding our merry-go-round of ups and downs.
I stayed in the market in January when things went south. The comeback, for me, was a matter of conviction based on history. Things will go down again, of course. But I believe that staying calm, engaged and as fearless as possible will you’ll get through to the other side.
I understand that the Tico attitude is geared towards slow, deliberate movement, not erratic ups and downs. Unfortunately, it is more and more a world market and CR will be sucked into the whirlwinds like it or not. CAFTA is just the beginning.

Edited on May 02, 2008 07:07

Edited on May 02, 2008 07:09

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