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People who look for recession indicators typically look at the following: GDP ( gross domestic product number ) , actual or real income , employment numbers , retail sales , and industrial production.
None of these areas are really lagging. However, nobody has a crystal ball. Recessions come and go, bull markets come and go. Neither lasts forever. In terms of collectables, buy what you like and what you love, AND WHAT YOU CAN AFFORD TO LOSE IF IT GOES TO ZERO VALUE. |
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Regardless of when the next recession hits (and I’ve been hearing for 4-5 years that it’s just around the corner) I would not look to cards as a safe haven. It’ll be a good time to be buying, not selling.
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I see the same articles with all of the indicators yet no one can ever tell what the market is going to do. I am sure more than a few great investors have said as much. (The only thing for sure is nothing is for sure). That all said, it is more fun to collect cards than stocks....at least to me. A balance is always best. :) Quote:
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You know, economists have predicted six of the last three recessions. The best indicators are businesses that get cut first when things slow up: construction, public relations, executive recruitment. My wife works in recruiting and her company has seen a marked slowdown in business. But my construction and public relations clients haven’t been hit yet. When I get a spike in collections cases from them it is time to batten down the hatches. Last time around my entire construction and real estate practice went from deals to collections virtually overnight...a year before the sh** hit the fan. Right after the 2007 NSCC. The cycle before that it was an onslaught of collections work against dot com companies and developers that collapsed and stopped paying vendors. The first cycle I experienced was right out of law school. It took the legs out of the construction industry to such an extent that the firm I was with (a construction practice) laid off 75% of its associates.
My research on boxing cards showed a lag between recession and effect of about one year. Prices were good in the months after the debacle but dropped after that. Bottomed out around October 2010. |
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