Fear is what triggers recessions. Fear causes people to stop spending, and it is the stopping of spending that hurts companies.
Companies that are hurting cut back. Cutting back strikes more fear in the hearts of employees.
Companies that are hurting also take in less revenue. Lower revenue from a number of companies sparks fear in investors.
Fear in investors causes them to sell their stock in those companies. The selling of those stocks, on mass is what causes the stock market to dive.
A diving stock market is a funny thing as it can either go back up again, as investors see bargains and buy, buy, buy.
Or a diving stock market can continue to fall as investors rush for the exits. Investors rushing to the exits is what causes a stock market crash.
Fear is the underlying motivating factor in all of this . . . fear.
And fear is what this new virus COVID-19 has sparked in many people in almost every country on the globe.
If you haven’t started to get your fiscal house in order, now would be the time . . . before you have to . . . and when you have to it is almost always an ugly scene.
So, use this . . . fear . . . as motivation to get your debt under control and . . . heaven forbid . . . gone!
For it is far much easier to manage a downturn in the economy when you have little to no debt, than if you are buried in it . . . and suddenly unemployed.
As always: Keep your head up, your attitude positive and keep moving forward!