Current crises seems to inspire more confidence in drinking than in stocks...

Searching for positives in the current debt-ridden economy seems almost hopeless. Everywhere we turn, markets are falling, people are losing their jobs, and companies are filing for bankruptcy. Will the financial bubble that seems to have burst over our heads leave some legacy of lasting value? Realistically speaking, we are witnessing the worst global economic slowdown in a generation. <--break->Markets of all types and sizes around the world have sharply contracted. The question to ask ourselves is this: Is this really happening, or do we just think it is? Or, perhaps more importantly, have we been led to believe by the media, those around us, and our financial advisors that what is happening is all bad news?

The massive growth of the hedge fund industry from $39 billion in assets at the end of 1990 to $1.9 trillion at the end of 2008 indicates that the industry far exceeded itself. Clients have been disillusioned, as the average hedge fund lost 17.7% in from January to November 2008, according to Hedge Fund Research.

Also, of Wall Street’s five big securities firms, only Goldman Sachs and Morgan Stanley remain standing; after an infusion of capital, they have become banks themselves and are now trying to figure out how, and if, they will make money again.

Additionally, along with expected declines for the telecom market in 2009, the Canadian telecom equipment maker, Nortel Networks, filed for bankruptcy protection from creditors Wednesday, January 14th, 2009 – another negative indicator of how things are going. If you had invested $1000 in Nortel stock just one year ago, the total value of your account today would sit at about $50. If you had purchased $1,000 worth of shares in Delta Airlines one year ago, you would have $49 today. To really put perspective on the current market, many have compared spending $1000 on beer a year ago and returning all the empty cans to receive $214 in recycling rebates as a better investment than those you could make on the stock market.

Mired in all this bad news, many people are not able to see any positives. However, we are still witnessing one of the greatest ‘garage sales’ of our lifetime, including the stock market and real estate market. Here are some additional ‘wake up and smell the coffee’ facts for you to think about:

* Federal interest rates are at their lowest in years.

* Commodities and stocks are down across the board.

In the real estate market, prices have come down and stabilized, creating more listings in every city across the country. In turn, this has created desperate sellers who are willing to take a loss on their properties, while eager buyers pick up these properties at a discount.

Billionaire investor Warren Buffett sees this in a positive light, and sure is taking advantage of the current marketplace - he knows there are always two sides to the coin. The question is, do you see these challenges negatively, or as opportunities that lie before you?

If you’re considering buying real estate for investment purposes, now is the time to do so. With mortgage rates at an all time low and frantic sellers unloading properties at under-assessed values, this is the time to act.

So, is the glass ‘half empty’ or ‘half full’ in your real estate portfolio? This scenario is certainly something to get you thinking.