Scary chart gets updated

In case you weren’t worried enough, the job loss chart I posted a while back has been updated. And the picture looks worse, not better (the green line is what we’re experiencing now):

CHART: Job losses now versus other recessions

I don’t get the feeling we’ve seen the worst this economic downturn. Many of the gigantic banks are still teetering on the edge of viability, and the failure of GM could send ripples through the economy. Who knows if there is the political will to continue to pour tax payer money into these institutions?

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Since this is chart day, you should also take a look at the stock market trend now versus other downturns (the blue line is our current market):

CHART: Stock market trends

I guess I should have taken what money I had in the stock market out long ago. But is there any point anymore? I don’t want to miss any potential upside, but the market just keeps tumbling… decisions, decisions…

4 Comments

  1. Ian

    I wouldn’t pull my money out unless there was a lot of money left. You don’t stand to lose much if there isn’t much there. I guess it probably depends on what stock you own too. If the company is in danger of folding, you obviously don’t want your stock to become worthless. I have no such problems as a graduate student who makes crap money 🙂

  2. Jordan

    Chris, you’re 23/24 and, if all goes well, have another 40 some years of income-producing work ahead of you. If you’re investing in individual stocks then you’re taking potshots in the dark. If you’re putting money into something broad-based like the S&P 500 and continue to do so (esp now when it’s low) then you’re going to come out decently well in the future (or at least better than having it in a savings acct that only accrues 1-2% a yr). Think long-term.

    “Why would anyone keep investing when the market keeps going lower every day?”

  3. Chris

    I am invested in broad based index and mutual funds, so my losses have pretty much tracked the s&p500.

  4. Jordan

    Right. Well, keep investing unless you plan on dying within the next decade. If you do, what does it matter anyway? Can’t take it with you when you’re dead