YesterYesterYear
It is funny what time does.
- Two years ago yesterday was the market low for the S&P 500, ending at 677. For those not familiar, basicly the S&P 500 tracks 500 of the largest publicly traded companies in the US. It ended yesterday at 1315.
- S&P 500 has surged more than 95%, as of Tuesday's close.
- That is the strongest 2 year bull market since 1962
- This added $6.2 trillion in market capitalization to the S&P
Those numbers may not mean much to you but it is interesting what time does and lessons I have noticed. Time can torture, trap, and hurt in the immediate. Two years ago yesterday, people were panicked. People were in crazy bad situations financially through the poking of the housing bubble. For those who haven't or can't refinance, there will be more people in crazy bad situations, as Adjustable Rate Mortgages (ARMs) change these next few years.
This 'challenge' has helped. Adversity has helped. People (and our nation) were living way beyond our means. Not just the individual, but municipalities, states, and the government were saddled with debt and we still are. Even businesses made themselves lean. Businesses cut off departments that they felt were unnecessary, watched expenses, and cut out excessive expenditures. I believe many of the large US companies are well positioned for future growth. Although we did let the competition gain a few steps on us, we still have the lead.
Two years later, there are still issues but not as dire as we thought only two years ago. Time can trap, torture, and hurt in the immediate. But time will free, save, and heal in the long run.
Patience is the state of endurance under difficult circumstances, which can mean persevering in the face of delay or provocation without acting on annoyance/anger in a negative way; or exhibiting forbearance when under strain, especially when faced with longer-term difficulties. Patience is the level of endurance one's character can take before negativity. It is also used to refer to the character trait of being steadfast. Antonyms include hastiness and impetuousness.
Those who were negative and hasty 2 years ago would have lost out on all the gains. People assume time is patience. Patience takes time but time is not patience. You can take time but not be patient. You can be patient but not give it enough time. In either cases, you are not patient. In the definition above, endurance and perserverance mean you are working toward a goal, you are hopeful, you are not negative. Patience is the level of endurance one's character can take before negativity. Patience is a virtue. Why is patience a virtue? I am not entirely sure. I just know that the last two years has helped open my eyes. Patience.
Share on FacebookThe Boomerang Generation
I hear all the buzz about how we are the 'Boomerang Generation'. Here's the wiki. Here is the New York Times on 'Why are so many people in their 20s taking so long to grow up?' Very interesting article on how 'growing up' is being pushed back and back. Some of the statistics are getting frightening. But pretty much, kids who go back to their parents, boomeranging, after college or as a young professional. Most parents (the older generation) use this in a derogatory sense. Oh-my-son/daughter-can't-get-a-job. Can't take care of him/herself. This generation is lazy. Your generation doesn't have the hardwork ethic, back when I was growing up.... On and on, parents rant.
Hello. Things change. Times change. It is weird to think this anyways because, mainly in Asian and Hispanic cultures, 'boomeranging' happens all the time. Actually you probably never left in the first place, so 'ranging' happens all the time! 'Skeptics' argue that parents are being enablers. 'Giving a drunk a drink'. Enabling their children to not become men or women. I do know some friends who are definitely being enabled by their parents. As they have not worked in over a year. But for the most part, friends who went back home are actually, legitimately trying to 'get on their feet'. I am not going to argue that competing with 10% unemployment is hard. I know it is.
Parents who point fingers. Talk behind their kids backs. Whispering how they wouldn't do that need to get a better picture on the global economic climate and stop demeaning their kids and start encouraging their kids to network more, apply more, and actively meet with people. I am sure the same parents who yap could easily be sifting through their own network for contacts so their kids could meet with them. Thus, adding to the likelihood that they can get a job to add the needed stream of income for them to not be boomerang kids!!! This should be temporary people!!
I worry with larger classes coming through high school in 2011 and 2012. Will America be back in 5 years when these kids graduate? Will we ever see 5% unemployment ever again? Or will it hover at 10%? I think we may see 6 and 7% unemployment but it would be hardpressed to see 5% again.
Some reasons on why there is a boomerang generation:
- The 18th through 21st birthdays of this generation coincide with the economic downturn starting with the collapse of the stock market bubble in 2000. This led to rising unemployment until 2004, the same time this generation was entering the workforce after high school or college graduation. Now at rougly 10% unemployment.
- Globalization-induced phenomena like outsourcing have eliminated many jobs. Take away some of those labor jobs and the older people with families, obligations, etc take up 'lesser' more entry level jobs that the recent graduate would have filled in previous generations.
- Real wages have fallen over the last twenty years
- A college degree no longer ensures job stability
this is the easiest, if not only, way for these young adults to maintain the middle class lifestyle they anticipated. Additionally, with the recent economic crisis hitting much of the world, many young people were either laid off or could no longer afford to live on their own. Moving back home allows them the option of unpaid internships and additional schooling without the burden of paying rent at market rates (or paying rent at all). Uhhhh unless I am reading this incorrectly. We had NOTHING to do with globalization, the greedy internet and now real estate bubbles, and real wages diminishing... We were probably snacking on some goldfish, a gogurt and watching Nickelodean. Outsourcing took time. Globalization took time. Crashes take time, time for the market to go up and up, then drop. It is not OUR fault, but it is OUR problem.
This is still no excuse if you are living at home and haven't found a job in 6 months. I think 6 months is plenty of time to find a solid job, if not a career job. And you better not be complaining about cleaning up around the house if your mom or dad asks you to. I see hiring signs at fast food restaurants and as pizza delivery all the time. Money is money. Our generation has definitely felt 'entitled' to more than it should. Which is nothing. You are entitled to nothing. (you may want to repeat that again). Working is a privilege. Even if it is as a pizza boy for a season.
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