According to a recent article in the Wall Street Journal, the US economy is no as strong as some would have us believe. in his article entitled "The Economy is even worse than you think," Moritmer Zuckerman cited 10 reasons why our economy is still in crisis. Here are just three of his concerns:
"The bureau of labor statistics preliminary estimate for job losses for june is 467,000, which means 7.2 million people have lost their jobs since the start of the recession. The cumulative job losses over the last six months have been greater than for any other half year period since world war two."
"The prospects for job creation are equally distressing. Many unemployed workers looking for jobs once the recovery begins will discover that jobs as good as the ones they lost are almost impossible to find because many layoffs have been permanent."
"Job losses may last well into 2010 to hit an unemployment peak close to 11%. That unemployment rate may be sustained for an extended period."
High real unemployment could prolong the recession. What does this mean for you as an investor? It depends on what age you are. If you are young and working, you can take more risk, but if you are retired, or close to retirement, you need to preserve what you have already accumulated.
