Recession - Its Effects

Recession, the downplay of the financial market.Economies fail, money markets flounder, recruitment freezed, costs controlled!!! All these factors, do they negatively influence you? Fear not, its just a going phase. You all know, prices were rising, steel, realty and IT. three factors interdependent. Hefty pay packets, lot of money flows in the market, rise in commodity prices, all contributed to the economic slowdown. Resulted also in many people losing their jobs. Although feeling sympathy to all those who lost and feeling bad to all those who think they are going to lose out on the future oppurtunities, well, I only tell them, do not fear. Passing phase. Yes, organizations will control their expenditures. But do not have so much. You only need to be competent enough to be face it. Come this September, the world will slowly bounce back. The economies will rise slowly, for this has been a great slowdown. Do not lose hope, for hope is the foundation of all.

Recession has taught us many things, one, sometimes we have to be prudent, sometimes we have to be aggressive. Shareholders, investors all lost their money, well they can now invest. Yes, Invest. Foolish eh? Not so, Reverse psychology, people invested when market prices were high and lost out due to recession, while some landed up in profit, not so much. But now, the market prices are low, its time to buy stocks rather than sell. Sell and you will end up in a loss. If you are earning less now, dont worry, organizations like hospitality and others have come up with a recession combating scheme. Just three weeks back, I saw a restaurant come up with a menucard on which it was written, "RECESSION FRIENDLY". The prices were low, meaning many people could afford it. Yes, if your normal income is low, invest in medium capital companies which offer low prices, especially in Indian firms. They are sure to come up and in a year or two you will earn handsome profits.

Third thing is believe in Satyam. Even though it displayed unprofessionalism in creating a big scam, with the new board and with Tech Mahindra offering stakes, it is sure to bounce back again. Dont criticize the regulatory authorities or the government for overlooking it. It is hard to audit, and if the fellows of the audit firm are themselves to blame, who will see towards it. Though the whole thing was wrong, believe in the government, a new board is there, it will bring up Satyam back. If we dont contribute, how are we going to negate what is already done? All are worried about security but throw away your fears, it is gonna be tough but it will come back.

Dont feel irritated if you are losing out on your investments now, the market is going up and down. But be sure, be hopeful, it will come back. Indian firms are gonna rule the day, especially if the US tax laws come into effect. The MNC's are gonna find it tough especially if they are subsidiaries of a US based company. But still invest. Now is te time to buy, and to throw away unnecessary fears. My last words, However financially sick you are, dont give up, have faith in the heavens and in yourself and try to make it big. Only thing favoring down is the high level of competence that will come up once the recruitments get unfreezed. But then throw everything away. Recession is for your own good.