There are no indicators that dictate recovery in the next year, so act accordingly. Everything from real estate to stocks are and will continue to dip. I am in cash positions until a bottom is recognized. You all should've taken profits before this post, if not, you missed out and are experiencing losses. I recommend re-entering the market at the bottom, it's not here yet...not by a longshot. There will be blood. Real estate is tanking and continue to tank in 2008. If you are a buyer, and are stable in all areas...now's the time to hit it hard! Real estate low ball offers should be made on substantial homes if you are in position to do so and you have high credit score plus down. You should be able to find "Mercedes" for the price of a used high-end "Acura" right now. Minimum low offers of 25% below appraisal are now standard in some markets (Florida, CA, Nevada, AZ). Steals of 50% below appraisal are too few to try, be happy with a very, very, very good deal. Pigs go to slaughter! Do not buy real estate in Ohio or Michigan under any circumstance. Those markets are dead and on welfare. Florida has huge inventories but high taxes. I wouldn't buy California, just an opinion, but California has so many problems right now. The future does look bleak as real estate taxes will kill you, the immigration problem...you know the problems. I wouldn't. Too many other areas of the country that have better upside and lower long-term risk than California and Florida. Keep liquid. Pay down debt when at all possible but don't drain checking down to zero. Take on NO NEW DEBT if you have nothing in savings. Buy very little this year. Rent if you cannot afford home payment comfortably. I'm a big fan of renting something nice, not buying if you can't snatch a deal. Stay away from car loans, buy used vehicles and keep cash in bank or credit union or other such safe investment vehicle. Huge inventories of used cars right now. I can buy a 2005 top of the line Mercedes right now for 50 cents on the dollar! Kee money in large banks, small banks are likely to fold if large positions in mortages or REITs. Travel to Europe is discouraged as your dollar is getting hammered and you will lose dearly per dollar spent. Gas is going to $3.70/gal. this summer...be prepared, it's going to happen. Do not change jobs this year. Keep what you have, lay low and keep cashing those checks. Disappear in the company and just do your job, don't make waves. If you're in sales, tough it out. Nobody in sales is making any real money, the grass isn't greener over there. Diversify your income streams. I currently have three major businesses going at any one time...you can do this as well. When mortgages are weak, government contracts peak. Recovery service is constant. I always have money flowing in but that income may flow from a different valve depending on economic situation. 2007 was gangbuster for mortgages...look at them now. Loan officers made just shy of what the President of the United States makes! That's how bountiful the sub-prime loan business was. If you bank on one industry each and every year to bail you out, you will lose. Real estate agents who do nothing else...they are starving right now. Learn from their folly. You can definately Recession-Proof your life. Those are my financial tips for today.