Sixty-Three Percent of People Hope for a Stronger Recovery in 2010 and Beyond

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The current Wealth Hazards Worry Index shows that as time runs out on the 2009 recovery more people now look forward to an improved economy in 2010

Atlanta, GA, December 1, 2009 — The Wealth Hazards Worry Index now indicates that the number of people who expect their lives to get better in 2010 has risen to 63 percent versus 58 percent on October 31st and 46 percent on September 30th. This change in sentiment reflects more optimism than previous surveys have indicated and may now show that consumers feel that the worst of the recession is behind them. “While there remain many challenges ahead for consumers – record high unemployment, increasing foreclosures, flat home values, and concerns about affordable healthcare – there now appears to be a glimmer of hope for a better economy in 2010,” says Thomas Hertog, editor at Wealth Hazards. According to the most recent survey from Wealth Hazards, sixty-three percent of survey respondents now feel that the long, slow recovery that looks to have gotten underway in late 2009 may be robust enough to carry over to 2010 and beyond. Despite the improved sentiment, consumers remain worried about their jobs, healthcare issues, and a potential “double-dip” back into a recession if the recovery is not sustainable.

“Many people took note in mid-November when President Obama publicly acknowledged the possibility of a ‘double-dip recession’ if government debt levels continue to skyrocket and incentives do not gain more traction,” said Hertog. “Now that the ‘double-dip’ concern has been placed on the table by the President it will be interesting to see how consumer spending, confidence, and expectations take shape over the next six months.” Some economists fear that the government stimulus programs to fuel consumer spending have actually had the reverse effect. Recent data indicates consumer saving rates have increased and people have focused on paying down debt and therefore have not purchased new goods or services which could help the economy recover more quickly. “We’re breaking new ground in economic terms and this has economists searching for answers to questions that we’ve not had to address before,” says Hertog. “One of the most pressing issues is further government assistance to the long-term unemployed who now number in the millions. The danger of providing more assistance has created a debate as to how we can best help those people who are in need of support during what appears to be the early stages of a long, jobless recovery.” As 2009 winds down and many people are relieved to have survived the recovery thus far, others are keeping a close eye on 2010 and what may be for some a very challenging year ahead.

About the Worry Index

The Wealth Hazards Worry Index 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. 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.