In that case, this probably is a good time to buy more stocks. But there is the possibility that the stock market is forecasting a significant downturn in the economy. After all, the stock market is one of the leading economic indicators. The plunge in telecommunication equipment stocks has been triggered, in large part, by lower spending by major telecom companies. Earnings shortfalls at other companies may auger a slower economy, not just a stumble.
Oil prices continue to stay high.
All of these aren t associated with a healthy economy. Check your emergency funds. Financial planners recommend you keep enough money to pay three to six months worth of expenses in a bank account or money market mutual fund. Unless you re looking for a job teaching Urdu, you can probably get by with less, particularly if you have a home equity line of credit. Consider paying down debt.