Hennessy's Highlights

In an “On Call Today” article posted to Physicians’ Financial News on Friday, writer Michael Sheehan asked if we might already be on the other side of the burgeoning recession that has dominated financial news over the past several months. Sheehan makes some interesting points about when the mass media has caught on to economic downturns in the past, noting that it has often been so late in the recession cycle that the economy has already begun its upswing.

Personally, I’m not convinced. Most of the signs I’m seeing say that we’re just heading down a long and challenging road financially. The housing market troubles are just one of many the factors that will have a longer-term impact on a struggling economy than many people realize.

While the examples Sheehan cites of the press being significantly behind the economic cycle are accurate, I don’t think they apply directly to the media as it is today—which is driven by the internet to greater speed and immediacy than it has ever had before. Of course, there are still financial opportunities available to the savvy investor, even in a downturn of some length. But to me, there seems to be too much evidence indicating tough times ahead to turn bullish with your stock portfolio now.

Mike Hennessy is Chairman and CEO of MJH & Associates. Click here for more Hennessy's Highlights