So what's a person to do??

In case you hadn't noticed lately, there is just a "wee bit" of upheaval happening in the financial landscape.

Perfect Storm

A "perfect storm" of economic factors, including sub-prime mortgage problems, inflation, the credit crunch and greed has come together with profound and dramatic effects to now crash upon our financial shoreline.

Commentators far more intelligent than I will help us understand the implications and repercussions of Merrill Lynch being acquired by Bank of America, Lehman Brothers declaring bankruptcy, AIG being embroiled in a cash crisis that drove its stock down 61% in one day, and leaving analysts wondering if $75B in potential loan guaranties is enough to keep them afloat.

Investor Uncertainty

These events, coupled with investor uncertainty, have caused the the markets down - at least for now. The economy is suffering from "sins of the past", as one friend put it. And, it is clear that the United States has probably been in a recession for some time. So where does this leave us?

Soft Landing

Despite these significant blows to our economy, a number of economic experts are expecting that the economy is heading toward a "soft landing," probably in the fourth quarter of 2008 or the first quarter of 2009. During the fourth quarter of 2008, the equity market will likely stabilize and possibly begin to move up. Going forward in 2009, there is strong evidence that the process of recovery will begin regardless of who is elected. No doubt it will most likely be slow and somewhat labored, but it will happen and we will benefit.

Don't Panic: Stay the Course

In the meantime ... don't panic! The greatest lessons I have learned over my 31 years during times of financial crisis is to "ride out the storm". The people I have seen suffer the greatest loss have been those who sold off rather than waiting patiently for markets to stabilize. This is NOT the time to stuff money in a mattress, but instead to have a diversified portfolio of real estate, stocks, bonds, cash, and alternative investments that help to stabilize the "ups and downs" of these economic storms. As my Montana mother used to quote, whose family experienced many ups and downs raising wheat and cattle, "it is indeed an ill wind that blows no man good". There are still opportunities for wealth building out there despite how things might appear in the papers and on the news.

We have weathered far worse - and prospered. Don't panic - stay prudent - get good counsel - watch for opportunities - and then take action.