Looks like we are headed for a recession! By academic terms, recession is two straight quarters of negative GDP growth. Not only has the GDP growth slowed over the past two quarters, there are definite signs that the real GDP growth has stalled! Some economists now predict we are headed towards negative growth which would officially signal a recession. Remember when US coughs, the world economy sneezes. In my opinion, the world economy is a lagging variable when tied to the growth of the American GDP. The effects are already been felt around the world:

1. The canadian trade balance shrunk to the lowest levels in the past 9 years. Two biggest contribution factors are the high value of the loonie coupled with sluggish demand from our neighbours south of the border.
2. I haven’t been following the Bank of England and the European central banks but I believe they are also under pressure to cut rates.
3. In India, the productivity slowed down last much at a rate much slower then predicted. The GDP growth last month slowed below 8%, first time in 3 years.

Along with these definite signs, the smart money on Wallstreet has already placed their bets on a recession and have gotten into their positions.

I wonder what the yields in the bond markets are predicting? especially the 10 Year .

Have so much uncertainty and havoc in the market for me signals a GREAT buying opportunity. The good stocks are going to be cheaper then ever and it will create a great buying opportunity in the next 3-6 months for those looking to invest for the long run!

We will stay tuned.

Warren..

Today was probably one of the most eye opening experiences I have ever had in a long time. I attended the Trader in Residence program at the Allen H. Gould Trading Floor to listen to Arjun Kumar Equity Investment Analyst at Spurcegrove Investment. Working in a trading environment over the past two years and following financial news extensively, I realized today that I have been bogged down in details rather then looking at the bigger picture.

His topic of presentation was "Value Investing" and he really gave a different perspective on investing. Watching CNBC and other news publications for several hours per day, I realized I was getting bombarded with information, most of it was unnecessary. I think today’s presentation not only produced an interest on the "Buy" side of Investing but I was also able to learn that there is MORE TO FINANCE THEN I-BANKING. At this time, I am not too sure whether I-banking was my cup of tea but my thinking was that it is the only thing in finance where there is growth potential and tons of money. Mr. Kumar if in the future I do end up working in Buy side of Investing, you will be one of the people I will thank for giving me such an eye opening perspective.

I was browsing through YouTube that night and came across an interesting video on the best value investor of all time - Warren Buffet! After doing some research on Wikipedia, I am going to take on the initiative of reading some of his recommended books. Hope I will be able to pick up on ideas which will help me become a better investor.

Books Recommended by Warren Buffett
1984 -- The Intelligent Investor
1992 -- The Theory of Investment Value by John Burr Williams
1994 -- The Story of My Life by Ted Williams
1997 -- The Science of Hitting by Ted Williams
2000 -- The Farmer From Merna by Karl Schriftgeisser
2001 -- The Warren Buffett CEO by Robert P Miles
2001 -- Security Analysis by Ben Graham and Dave Dodd
2001 -- Jack, Straight from the Gut
2002 -- Common Sense on Mutual Funds, John Bogle
2002 -- Take on the Street by Arthur Levitt
2003 -- First a Dream by Jim Clayton
2003 -- Bull! by Maggie Mahar
2003 -- The Smartest Guys in the Room by Bethany McLean and Peter Elkind
2003 -- In an Uncertain World by Bob Rubin
2003 -- The Intelligent Investor -- 2003 Revised Edition by Jason Zweig
2004 -- The Intelligent Investor
2004 -- The Financial Times, Amercian Edition Newspaper
2004 -- The General Theory by John Maynard Keynes
2004 -- Nuclear Terrorism: The Ultimate Preventable Catastrophe by Graham Allison
2004 -- Poor Charlie’s Almanack
2006 -- Seeking Wisdom: From Darwin to Munger by Peter Bevelin
2006 -- Where are the Customers’ Yachts? by Fred Schwed