Are you worried about the “credit crunch”?
More on my contention that small business people are optimists. In an article in CNN Money, several experts and small business people said they weren’t letting the “credit crunch” affect them. Examples:
- Venture capitalists are still interested in lending money (except, of course, for housing or financial sectors)
- There is no significant difference in the ability of small businesses to get funding (compared with last year at this time).
- Fewer companies are having difficulty paying bills. I’m not quite sure I believe this, but this is what the article said.
Optimists, as mentioned in a previous post, take a long term view. They are willing to hang on because they see better times coming. And they are usually right. We Baby Boomers have seen the ups and downs, which is another advantage of being in business at our age. We remember the “Crash of 87″ and we saw the “dot com” boom go bust. What goes up must come down. Bull markets will be followed by bears followed by bulls.
The fact I hang on to is that the U.S. stock market, over time, has averaged a rate of return of 11% since 1929. So if you buy a good whole-market index fund and you can hang on, over the long run you will get about the same return as if you played around.
As Henry Ford said, “If you think you can or you think you can’t, you are right.”
I would appreciate your comments. Do you think we small business people should be worried about the credit crunch? Are you worried?
Related Stories
POSTED IN: Being A Boomer, Boomers nearing retirement, Finance, Mindset
0 opinions for Are you worried about the “credit crunch”?
No one has left a comment yet. You know what this means, right? You could be first!
Have an opinion? Leave a comment: