Print Version
Email this story
Comment
Is there an upside to a downturn?
 |
| H&N photo by Todd E. Swenson Gary Weldon, right, shows an Audi to Eric Shepherd and Jessica Hawkins at Klamath Superior Motor Company on Friday. |
How to come out ahead
in an uncertain economy
By TY BEAVER
H&N Staff Writer
People who are on stable financial ground can benefit from an economic downturn, experts say. Janet Buckalew, vice president of marketing at Pacific Crest Federal Credit Union, said low interest rates that accompany economic downturns often make it more affordable to purchase a car, a new home or fund renovations. Small businesses can apply for expansion loans to diversify, and homeowners can consider refinancing if they have good credit.
“It can be hard to do, but a lot of people are doing it,” she said.
She is among experts in the financial sector who see potential in today’s economy. Interest rates are low and a struggling stock market makes it easier to begin investing for the future.
“This is absolutely the time to take advantage of dips and downturns,” said Marty Ledgerwood, vice president of South Valley Wealth Management.
Ledgerwood said the low stock market makes it easier for people to start investing in a retirement or basic savings plans. Mutual funds start at $250 for an initial investment.
But not everyone should try to get ahead right now.
Paying debt
People with substantial debt should work to pay down what they owe, and if they don’t have the finances or the need, they shouldn’t make big purchases, such as a home, right now, experts say.
A recession or economic downturn also is a good time for people to reassess how they handle their money and their short-term and long-term financial goals, said Hallie Neupert, associate professor of economics at Oregon Institute of Technology.
And, economists say, many people should cinch their belts and take a close look at their accounts.
Too much spending
State economist Steve Williams said the country on average has a negative savings rate, meaning people spend more than they actually make.
Willie Riggs, director and agronomist at Klamath Basin Research and Extension Center, said when profits and cash flow are strong, people spend money more freely and on things that aren’t essential.
Consumer spending is essential, though, experts say. It creates jobs and keeps people employed, allowing them to fulfill their basic needs. And some purchases can’t be avoided, such as replacing an aging car or making room for a growing family.
Market flux
But a recession changes those dynamics.
“The upside is we’ve never stayed in one forever,” Riggs said. “When we’ve got the flu bug we think we have it forever but it passes.”
“It can be hard to do, but a lot of people are doing it,” she said.
She is among experts in the financial sector who see potential in today’s economy. Interest rates are low and a struggling stock market makes it easier to begin investing for the future.
“This is absolutely the time to take advantage of dips and downturns,” said Marty Ledgerwood, vice president of South Valley Wealth Management.
Ledgerwood said the low stock market makes it easier for people to start investing in a retirement or basic savings plans. Mutual funds start at $250 for an initial investment.
But not everyone should try to get ahead right now.
Paying debt
People with substantial debt should work to pay down what they owe, and if they don’t have the finances or the need, they shouldn’t make big purchases, such as a home, right now, experts say.
A recession or economic downturn also is a good time for people to reassess how they handle their money and their short-term and long-term financial goals, said Hallie Neupert, associate professor of economics at Oregon Institute of Technology.
And, economists say, many people should cinch their belts and take a close look at their accounts.
Too much spending
State economist Steve Williams said the country on average has a negative savings rate, meaning people spend more than they actually make.
Willie Riggs, director and agronomist at Klamath Basin Research and Extension Center, said when profits and cash flow are strong, people spend money more freely and on things that aren’t essential.
Consumer spending is essential, though, experts say. It creates jobs and keeps people employed, allowing them to fulfill their basic needs. And some purchases can’t be avoided, such as replacing an aging car or making room for a growing family.
Market flux
But a recession changes those dynamics.
“The upside is we’ve never stayed in one forever,” Riggs said. “When we’ve got the flu bug we think we have it forever but it passes.”
Reader Comments
The following are comments from the readers. In no way do they represent the view of HeraldAndNews.com. Comment Disclaimer: The editors of heraldandnews.com reserve the right to refuse publication of any comment posted for consideration. We may refuse for any reason, including use of profanity, disparaging comments, libelous comments, etc. Any reader who notices a comment they believe is particularly offensive, should notify us at webmaster@heraldandnews.com.
RSS
No On wrote on May 11, 2008 7:19 AM:
I am quite offended by Gordon Ross' cartoon in the paper that has all the information in this cartoon misinforming the voters. There are not 8 dispatchers, there are 11. 3 of those are supervisors that have been instructed by Dilley not to do anything, just like here. Then there is Dilley herself and her operational manager for a total of 13.
If these supervisors would multi task, they could actually dispatch and supervise at the same time.
Certain media is in support of this levy, and it is apparent by their misrepresentation of the facts of this levy.
No on 18-67, all we will do is let this director know that she can mismanage the funds and expect us to bail her out. "