Fifty-Eight Percent of People Ask ‘What’s so Great About the Great Recovery?’

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The just-updated Wealth Hazards WorryIndex(TM) now indicates that more people doubt the strength of the recovery

Atlanta, GA, November 3, 2009 — The Wealth Hazards WorryIndex(TM) now indicates that the number of people who don’t believe in the durability of the current recovery has risen to 58 percent versus 46 percent on September 30th and 31 percent on August 31st. While stock indexes continue to move wildly, it’s important to remember that the stock market leads the recovery of the real economy by nine months or more. This recovery is expected to take longer than any recovery since the 1930s and most likely will not include robust job creation for the 15 million people presently out of work. “None of this is good news for the unemployed, those living on a fixed income, or anyone else who is just trying to survive the recovery, let alone thrive in this economy,” says Thomas Hertog, editor at Wealth Hazards. According to the most recent survey from Wealth Hazards, fifty-eight percent of survey respondents now feel that a meaningful recovery is still six to nine months away. The survey continues to reflect a deep concern with unemployment, low consumer spending, healthcare issues, and expiring stimulus programs from government.

“The cash for clunkers program got people to trade in older models for more fuel-efficient vehicles and reduce dealer inventories,” said Hertog, “but now the hangover begins for people who have added a new car or truck payment to their monthly obligations.” The retail forecast for the 2009 holiday shopping season continues to be revised downward as spending remains flat and consumer surveys reflect an expectation that people will be more price-conscious this season. “Consumer spending will not reach a sustainable level until people are no longer concerned about their jobs,” says Hertog, “consumer spending is 70% of GDP and it will take several quarters of increased spending to be impactful.”

About the WorryIndex(TM)

The Wealth Hazards WorryIndex(TM) was created to capture the sentiment of consumers. It is measured by comparing the difference in survey responses to when the current recovery began vs. when it will begin over a one-month time interval. Those responses that indicate a belief that improvement will occur in future quarters (versus the current quarter) increase the index’s score. A higher score reflects a heightened sense of discomfort or insecurity with the condition of the economy, housing, jobs, and stock market. You can view the survey at http://www.WorryIndex.com.

About Wealth Hazards

A wealth hazard is a risk or threat to your financial health. Wealth hazards come in all shapes and sizes and very often in disguise. Wealth Hazards was established to help people to avoid, manage, and recover from life’s wealth hazards. The new book “Wealth Hazards – Surviving the Recovery” is now available at http://www.WealthHazards.com.