Usually, four years after something so bad that it was called, not just “The Recession” but the Great Recession, things would be better for the average household, not worse. Yet in spite of all positive thinking, well wishing and coming up with new and creative ways to calculate the GDP (not to get a more accurate figure but designed to get a a more flattering number) here we find ourselves with the average household recalling the good old days right at the bottom of the recession in June of 2009.
In a report from Sentier Research, which was derived from a study of Census Bureau data, the U.S. median income in June 2013 fell to $52,098 from the June of 2013 post recession figure of $54,478. For anyone curious, the median household income at the start of the recession in December of 2007 was $55,480. Excuse me, but didn’t some one say we were supposed to be in a recovery. With recoveries like this who needs recessions.
The report revealed that almost every group experienced some downturn and is worse off that they were four years ago with the exception of those 65 to 74. It seems the groups that can least afford it were left with greater than average decreases in household earnings. Those groups include blacks, the young, upper-middle class folks and the unemployed. Talk about disillusionment, this was probably not the change they were hoping for.
The question remains “Are we going in the right direction or are we pursuing policies that got us in this predicament and will ultimately make things worse?” Another question might be “Is there anything we can do to protect ourselves from self-destructive behavior?” Perhaps those who held the long view of buying gold coins and were in a position to not burn through it in their day to day living expenses are in a more favorable circumstance.
At ITM Trading, we well aware of the current national financial climate as well as the economic mirages that exist. In such an environment we think everyone should protect themselves with physical precious metals in their portfolio. Please give us a call, toll-free, at 1 888 OWN GOLD (1 888 696 4653) if we can be of service.
We believe that everyone deserves a properly developed strategy for financial safety.
Chief Market Analyst, ITM Trading