Finance and Investments

Is the recession over? Economists and pundits world-wide are pontificating – while I might add most of us are getting on with our lives.

According to Warren Buffet, the world’s most successful investor the economy has “sort of plateaued at the bottom.” The Federal Reserve Chairmen Ben Bernanke has said the recession “was very likely over.” The recent surge in the S&P500 (the American Share Market Index) of 58% is certainly impressive as has been the growth in other markets. In addition to this consumer confidence is up, indicating consumers are spending again – and like it or not spending is the pump which primes economic growth; production then increases, profit comes back and investment returns.

There are still signs of doom and gloom the economy is still ailing and unemployment is still high here and offshore. Offshore banks are still very much in recovery mode but, to quote Warren Buffett again the “economy is now out of the emergency room and appears to be on the slow path to recovery. So financial Armageddon did not occur. Well the recession may be over but that is no reason to invest indiscriminately. Buying value is still the key.