Are We Talking Ourselves Into Recession?

[etegration]

http://www.businessweek.com/investor/content/mar2008/pi2008035_362526.htm?campaign_id=rss_daily

[arcsaber]

Can some1 explain to me how serious recession is? Interested to learn.

[Gollum]

Can some1 explain to me how serious recession is? Interested to learn.

a true recession is when u have 2 quarters of negative economy growth.

in layman terms,

what happens is a domino effect that becomes a vicious circle.

Market sentiment is bad, so people spend less which means companies makes less, meaning employ lesser staff, who will in turn reduce spending on the companies.

this way all sectors, manufracturing, retail etc all suffer the vicious cycle effect.

[arcsaber]

a true recession is when u have 2 quarters of negative economy growth.

in layman terms,

what happens is a domino effect that becomes a vicious circle.

Market sentiment is bad, so people spend less which means companies makes less, meaning employ lesser staff, who will in turn reduce spending on the companies.

this way all sectors, manufracturing, retail etc all suffer the vicious cycle effect.

Sounds very serious. Even investors will start to earn less then. Seems like there will be a turn in future markets then. Seems like sg is affected least from this turn of event.

[Gollum]

Sounds very serious. Even investors will start to earn less then. Seems like there will be a turn in future markets then. Seems like sg is affected least from this turn of event.

no ah

the sti is not a true indicator right now.

index stocks are held up.

but everything else is heading towards 2004 levels.

[simplyadvanced]

a true recession is when u have 2 quarters of negative economy growth.

in layman terms,

what happens is a domino effect that becomes a vicious circle.

Market sentiment is bad, so people spend less which means companies makes less, meaning employ lesser staff, who will in turn reduce spending on the companies.

this way all sectors, manufracturing, retail etc all suffer the vicious cycle effect.



recession is when your neighbour loses his job. depression is when you lose yours:hat1:

[cyberdog]

Sounds very serious. Even investors will start to earn less then. Seems like there will be a turn in future markets then. Seems like sg is affected least from this turn of event.I think if a person invested wisely during the good times and kept his gains safe, recession would be a pretty exciting period. Many things (tours, shopping, investments etc) are all relatively cheaper since demand is generally low. Best time to bargain hunt if you are cash rich and can hold for indefinite period -indefinite because no one really knows when recession will be over. you will be in trouble if you spend all your money picking up "bargains" only to find out that you need the money back before their prices have re-appreciated.

On the other hand, if I'm not wrong, some things like gold will tend to rise in price because these are seen as safer forms of investment during bad times so demand goes up and price increases. So it may not mean that your investments do not pay well during recession. If you had planned your portfolio well, you can theoretically make money during almost any phase of the economy, good or bad.

But this is just my own conjecture hor. i'm not econs- or finance-trained so i may be completely mistaken :D :P

[yashirob]

self fufillling prophecy?

[MikeDirnt78]

recession is not yet coming IMO. you can read more about yield curve (http://sti-stocksinfo.blogspot.com/2008/03/yield-curve.html)if you are interested.