Getting Going in the New Year

Well, I think the 2008 Christmas season is officially over. We are past New Years and most of the meaningful bowl games except for that Florida team!

I have taken down my Christmas lights and decorations. I am cleaning my house and taking unneeded things to the Salvation Army. I am working on my new year's resolutions (but falling over on my bike yesterday did not help...).

This year there was definitely a different sense because of the economy. Some people definitely cut back. I know I did not spend as much this year as last year. My parents though seemed to be enjoying like they normally do even though they are retired. On a fixed income, I expected them to be a bit restrained.

Overall, it sounds like retail sales (excluding gas and durable goods like automobiles) were down 2%-4% from last year from reading through the Wall Street Journal. Retailers definitely discounted items and that will hurt profits, but it was not the dismal view that we heard in the news. Overall it was a mixed bag on who did well and who did not.

Things are not good. We are in a recession, but we are not in a depression. The question is whether or not we are at the bottom. The stock market was definitely positive in the last two trading sessions. I think we have hit bottom and are on the recovery. It will take awhile though. We should live like nothing is happening, but we cannot hide from it by acting like the world is collapsing. I am being smart with how I spend / invest my money but I am not retreating. I also know some are hurting too because of lost jobs and need help.

I hope everyone has a happy and prosperous new year!