the Wealthy Canadian

For those in the the northern hemisphere, we are experiencing the longest night of the year.  Indeed, this is a dark time, the nights are long and it appears that we are being consumed by financial calamity.  Banks are failing.  The auto industry, led by the so-called Big 3, is on the brink of ruin.  A few months ago the world was dying from environmental decay (haven’t heard much about that lately, I wonder if it’s feeling better).  Oil has dropped roughly 75%.  And of course, the mining, forestry, retail, tourism, airlines, … sectors are also claiming that they need public funding or they’ll face bankruptcy.

It is important to remember that the moon, the seasons, and the economy are all cyclical.  Unlike the seasons we cannot predict with any degree of certainty how long the economic cycle will last.  Bear markets tend to start quickly and bull markets tend to recover slowly.  We’ve definitely seen the stock market tank very rapidly over the past months.  However, the indices appear to be stabilizing, despite the bad news that surrounds us, despite the tax loss selling, and despite the Madoff Affair.  We are likely in for a long road to recovery, hangovers are never fun.  But things will turn around, and hopefully, we have nowhere to go but up.

Image courtesy of Yahoo Finance

This is not the time to mourn, but to dance.
Merry Hibernal Solstice everyone.