…That’s hard to do when it seems like we have no control over the loss of a large percentage of our personal net worth. Real estate values down, stock market values down. Twenty-five percent (or more) of some peoples’ assets gone in a couple of months. In the middle of the economic storm, it is hard to keep your wits, and your calm.
So, hard do you stay calm? Well, as an individual, you take the long view and recognize that the markets always come back (unless you think this is really the end of civilization as we know it!). In that case, you plan for when they start coming back (perhaps in a year or two). If you are unlucky enough to need your invested money in the next couple of years, you have a problem. I feel for people expecting to retire in a couple of years. If they still had all their money in the market, perhaps they were not getting (or taking) good advice.
As a business owner or manager, you have to consider your market and customers and how the recession will affect them. You should adjust accordingly. If you have a business that will grow during this time, plan to take advantage of the market. If your industry will suffer, then plan to take advantage of the opportunities to attract good employees from others in the industry, give good value nd god service and attract markt share. If possible, use your cash wisely to be prepared for the upturn. My father taught me a system for use that the craps table that had me conserve my cash so I could be around when the “good roll” came. If you are too risky and plunge into things, then you may not be at the table when the good roll comes.
I follow that advice regularly.