A Few Are Getting It - Eventually Everyone Will

Now don’t get me wrong, I do understand how guest and visitors to 2oversold.com might think this blog is in the bearish camp and finds only the negative in the markets.

And I reckon to a point that would be true. I am bearish on the markets right now but am not a bear in the sense of the word that I look for companies that might be inflated and try to blog about them. And true I do blog a lot about the negative events going on right now in the economy but in my defense that is simply because that is the news.

Today I was reading an excellent article about the current unemployment and just what type of impact it is having on some individual consumers already. I will link you to the full article at the end of this blog but first I want to highlight a paragraph from it:

And for those living paycheck to paycheck, that can mean having to move, sell possessions or give up everyday extravagances such as cable TV or phone service.

Now how many of us have actually gone as far as to think of cable TV or phone service as an extravagance? Not many. But that time is coming I do believe where many of us will have to make some decisions about our standard of living. And as we have blogged here many times I think the economy is in much worse shape (see : And The Bear Roars ) than is being reflected in the numbers to date and as we continue into 2009 this will become more apparent.

Folks the times are about to get hard for everyone. I am not talking about just the K-mart employee or the average blue collar worker….I mean everyone. The markets will fall to be sure and there will be many who actually prosper from all of this but in my opinion it will be those who can start understanding the scope of the problem now, think outside the box and be willing to ride out the storm. And the storm is coming make no mistake.

2oversold.com has already blogged about some individual companies we think might do well in during such a storm. Companies like Yamana Gold (AUY), Mad Catz (MCZ) and Mattel (MAT) just to name a few but there are many more. The companies that I see doing well in 2009 will be the “value to the consumer” type stocks.

Oh and as I promised here is the link to the article and what you read might surprise you:

Nearly 2 million jobs were lost in 2008 and economists say the unemployment rate, which stands at 6.7%, will continue to rise into 2010.

“People realize that this is a different environment, said Jeff Joerres, chairman and CEO of employment services firm Manpower. “People are more anxious and are willing to secure something even if it is less.”

Shaun Chedister, 30, is one of those people. Chedister was laid off from his job at Washington Mutual at the end of last year. After eight months of actively looking for work to help support his wife and four children, he accepted an offer from Ernst & Young even though the new position as an executive administrator paid less than half of what he was making before.

“My unemployment had run out, and I had to get something,” he explained.

But the adjustment to making $66,000 a year from $125,000 has been hard. “For the last four to five years I’d been making six figures,” Chedister said. “My lifestyle had been at a certain level.”

Now Chedister said he’s looking for a more affordable home. Last week one of the family’s cars was repossessed after he got behind on the payments.

“It could be worse,” he said, I could still be unemployed.” Full Article: Unemployed workers accept pay cuts to find jobs

2oversold.com is a blog for the individual consumer and private investor. We are not experts in the markets nor do we make any recommendations of any company. The companies we blog about are discussed for the purpose of this blog only and this should not be considered as investment advice.

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