A Gloomy Picture

The markets are displaying a severe case of bi-polar disorder, with rapid cycling on a bi-daily bases.  Today the diagnoses came from Morgan Stanley that the U.S. and Europe are "dangerously close to a recession."  For 4 weeks now the markets have been declining, with no sign of stabilizing.  As the markets display weakness and volatility, fear and uncertainty grows creating a severe crisis of confidence.  Faber stated that the "financial conditions are worse today than they were prior to the crisis of 2008."  This is not a time for screaming that the sky is falling.  Although, all signs point to the fact that it is.  What is one to do in a crisis?  Remain calm and assess the situation and then take the necessary steps for safety.  If a recession is coming how can you prepare?  That is what each person needs to decide for themselves.  During a recession with high inflation it is hard to purchase new products.  It is a time when those that are hit have to give up the luxuries.  People even tend to give up their namebrands for generics.  So this might be a good time to buy some of the necessities that you use the most and feel you can't do without.  But do try to conserve as much a possible.  Try to have a little bit of savings put ahead for that rainy day.  If you have some investment money there is safety in gold.  A few think it is a the next bubble.  But most investors are running for safety to gold.  It has been the best place for a safe haven for years.  Today gold is at $1845 an oz.  Yes, that does seem like a lot.  Nevertheless, it is still predicted to go higher with all the world currency problems and bank funding and tightening squeeze.  Plan ahead.  Begin to cut back. Put some cash away.  Buy gold (and silver).