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At some point during that period, he said, a declining equity exposure makes sense.
"What worries me is how a declining equity market coupled with a slowdown in corporate profitability will affect hiring activity," he said.
That will lead to more foreclosures — declining equity is a risk factor for default — and more defaults and foreclosures will hamper the banks' recovery and further constrain credit.
But today rising financial asset prices stimulate the economy; declining equity and bond prices depress it, as in Japan and Asia.
World leaders are beginning to grasp the all too likely political fallout from a sustained period of falling output, rapidly rising unemployment and declining equity and home prices.
Our healthcare system is broken, our education is sub-optimal (to be charitable), our energy policy is a sham, we are facing an economic decline of massive magnitude and declining equity and real estate markets, we have two wars with no end in sight and a number of pressing national security issues to boot.
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(See "Retailers Report Slimmer Sales Gains").. Declining equities led investors to the safety of certain commodities.
Self-directed IRAs and 401 k)s provides extensive latitude in taking advantage of not only declining equities, but also private placements, real estate, mortgage notes, leases and a number of other cash-flowing assets.
Tom Walworth, president of the firm, attributed the drop to a combination of high fuel prices, tightening credit and declining home equity.
As the authors of the MetLife study reported: "With the erosion of social and corporate safety nets, tightening credit and declining home equity, most Americans have little financial cushioning to survive a job loss.
Due largely to declining net equity extraction, the TrimTabs Consumer Spendables Indicator is expected to be down 0.3% year-over-year in first-quarter 2008, which helps explain why consumer sentiment is so awful.
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CEO of Professional Science Editing for Scientists @ prosciediting.com