The stimulus package has become law, and there will be new money to boost the nation’s short-term economic performance. However, saving the windfall will only continue the recession. The question is, ‘where should I spend this money?’
Here are my suggestions:
Worst Buys
10. Handbag, wallet, or other textile accessories
9. Shoes
8. Fast food
7. BluRay/DVD player or Ipod
6. Clothes
5. Antiques
4. Art
3. Municipal Bonds
2. Utility stocks
1. Commodity stocks
Best Buys
10. Kitchen electronics (refrigerator, microwave, etc.)
9. Plasma television or Blackberry
8. Entertainment electronics (XBox, PS3, Family games)
7. Vacation (within 100 miles of home)
6. New car
5. Financial or Pharamceutical stocks
4. Jewelry
3. Large-Cap, Value Mutual Funds
2. Franchise
1. Rental Property
My rankings are based on how well each purchase retains value after 3 years, given the historical performance of the American market dating back to 1870. In addition, I considered the sociological ‘job multiplier’ effect to prioritize buying that generates more jobs.
Consumer purchasing must rebound for the world economy to begin to recover. Managing your windfall from the stimulus package by balancing your savings, your debt, and your purchasing is the first step out of the current recession.
To DaVinci, From Imhotep 