The Bank of Canada governor spoke yesterday at a luncheon in Toronto and basically was telling people that this mess will end.  Thanks Mark.  Of course we know it will end, but everyone wants to know when?

When is largely irrelevant in my opinion.  Admittedly no one really knows when it will end anyway, so why waste so much time trying to figure that out?  Isn’t it enough to know that it will end? Recessions are largely exacerbated by the overall psyche of the people.  People get overly scared so they pull back which makes the recession worse.  If we all believed it would end,  and let’s say relatively soon (say by the end of 2009) then we could feel safe to buy the things we want?  Celebrate and enjoy the low inflation and cheap energy right now, what about the low price of housing and corresponding low interest rates…these will end to.  So, what to do then?  If you are not worried about your job and you have control of your debt load, then act normal.  Take advantage of the lower prices and rejoice.  Buy those big ticket items you have been waiting for, but bottom line don’t retreat, you are contributing to the delay of the recovery.If you are worried about your job then act pro actively.  Renegotiate your debt NOW.  With variable interest rates hovering around 4% does it not make sense to shift your debt on your balance sheet from credit cards at 18% and lines of credit at 7% or so and move it into a home equity loan at 4%.  The resulting cash flow savings will serve you well IF you lose your job.  Do this BEFORE you lose your job…how many banks do you think will renegotiate your debt when you don’t have a job?If you are concerned about your overall debt load then read the above paragraph again…slowly.  This applies to you.

If you feel that your debt is control, and your job is safe but you are anxious about your retirement savings and you wonder how you can take advantage of the stock market recovery. Get ready NOW.  send me a line and would be happy to show you some great strategies to re-organize your balance sheet to be prepared for entering the stock market STRATEGICALLY.Don’t worry, be Happy