Mindset Change – Pushed by Recession

The recession finally hit my company this week.  They cut our recruiting team by 33%.  That’s good for me since I’m still in my seat and now have less internal competition.  The rough part is that we’re all under the microscope even more these days which hurts my trading and blogging time.  I can take a bigger piece of the office pie, but the pie is much much smaller now. 

That change, coupled with my smaller account balance, have led to a mindset change for me.  I’m focusing more on work than I was in 2008 because it takes more effort to make the same amount of money these days and I’m interested in making more than just my shameful amount as last year.  My wife and I have been saving more in our checking account this year than we have in our entire marriage.  We did a few projects around the house, but have been hoarding cash with the fear that I’d be part of the layoff when it came.  I escaped this one, but never know about the next.  A couple of weeks ago we agreed that I should start sending in $1,000 per month to my taxable account.  I still haven’t started that.  Today she found out that she’s getting half of her bonus from last year.  We didn’t know what it would be since her company didn’t hit their goals.  So, we’re happy with that.  Now I’ll really feel the need to start regular contributions again since our checking account earns less than $1.00 a month in interest.

I haven’t traded much lately, mainly out of fear and uncertainty.  Without any stocks that I like enough to risk an investment I’ve been eyeing ETFs that will avoid a total washout and can’t pull the trigger yet on a trade.  I worked out some fairly safe put spreads, but would prefer a “good” down day to work off of lower prices.  I might be more bearish about the economy lately because I’ve had more friends (and now coworkers) join the ranks of the unemployed.  Being a recruiter I’m one of the first ones my friends and their friends call to tell me they are out of work.  Most of the candidates I find on job boards are now unemployed or expect a layoff soon.  Those who are already out of work and struggling to find something new are open to taking 25-30% pay cuts just to have some income.  I see a day when unemployment falls, but the reality will be that incomes have dropped big and disposable income will have been cut to ridiculous levels. 

My hope is this malaise subsides soon and I stop hearing of so many sob stories.  Once that clears some and we can get some direction in the market I’ll be ready to jump back in head first.  Until then, I’ll continue to try find the right position and hedge it while doing my best to stay employed myself with less time trading and blogging.